Shares of multibagger VA Tech Wabag broke 5 days of obtaining touch onTuesday The supply finished 0.53% reduced at Rs 1361.70 in the previous session. During the coming before 5 sessions from Tuesday, the supply had actually increased from Rs 1,255.55 on September 2 to Rs 1,368.90 on September 9, 2024, obtaining 9.02% throughout the duration.
Rekha Jhunjhunwala, other half of late capitalist Rakesh Jhunjhunwala possessed 50 lakh shares or 8.04% risk in the company at the end of the June 2024 quarter.
However, the multibagger supply finished 0.53% reduced to Rs 1361.70 versus the previous close of Rs 1368.90 on BSE. Market cap of VA Tech Wabag was up to Rs 8,468.47 crore. The supply has actually acquired 182.48% in a year and increased 388% in 2 years. It has actually climbed up 113% this year.
A total amount of 0.49 lakh shares of the company altered hands totaling up to a turn over of Rs 6.70 crore on BSE. VA Tech Wabag supply has a 1 year beta of 1, showing ordinary volatility throughout the duration.
The supply was up to a 52 week low of Rs 436.35 on October 12, 2023 and a 52 week high of Rs 1420 on August 20, 2024.
ICICI Securities has a buy contact the supply with a rate target of Rs 1,541.
The brokerage firm claimed Wabag has actually lost the fat, tidied up its annual report and enhanced its margin over the last 24 months. The brokerage firm kept its buy phone call and modified its cost target to Rs 1541 from versus the earlier target of Rs 1,445.
“VA Tech Wabag (Wabag) bagged a mammoth order of INR 27bn (equivalent to its FY24 revenue) from the Middle East for a desalination plant – the entire order is for EPC. As a result, Wabag’s EPC order book (OB) is now close to INR 79bn or >3x book to bill ratio. Order inflow (OI) has been a concern for the last 18 months – FY24/Q1FY25 OI undershot Street’s expectations (lower than revenues). At the beginning of the fiscal, management had indicated a good bidding pipeline from Middle East. It had also pre-qualified to bid for Egyptian desalination contracts to bid up to 1000mld. Note – Middle East/Egypt have a strong pipeline of desalination contracts, ” claimed the brokerage firm.
Axis Securities has actually started protection on the supply with a ‘Buy’ phone call and a target cost of Rs 1,700 per share.
The favorable position is sustained by solid market tailwinds, enhancing productivity, durable order publication, and increasing offerings, claimed the brokerage firm. The supply presently trades at 18 times FY26E EPS however Axis Securities values the supply at 23 times FY26E EPS.
VA Tech Wabag Limited is taken part in the water therapy area. The business’s primary tasks consist of style, supply, setup, building and construction and functional monitoring of alcohol consumption water, drainage therapy, commercial water therapy and desalination plants. It offers remedies for alcohol consumption water therapy, commercial and procedure water therapy, water recovery, sea and briny water desalination, community drainage therapy, hazardous waste water therapy and sludge therapy.
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