Listed below is one of the leading century-old company operating in the domain of water management by providing end-to-end solutions related to it, which has delivered a multibagger return of 1,910 percent shareholders of the company in just 5 years.
Price Action
With a market capitalization of Rs. 9,614 Crores the shares of Va Tech Wabag Limited were trading at Rs. 1,545.95 per equity share, up 1.7 percent from its previous day’s close price of Rs. 1,520.05.
Long Term Gain
On April 3, 2020, the shares of Va Tech Wabag Limited closed at Rs. 75.40 per equity share, exhibiting a gain of around 1,910 percent compared to the current market price of Rs. 1,542. For example, if someone had invested Rs. 10,000 into the company’s stock 5 years ago, it would have turned to ~Rs. 2 Lakh.
About the Company
Founded in 1924 Va Tech Wabag Limited is a century old well established player in the water management sector being the 3rd Largest Private Water Operator, with 1,500+ plants being executed and 125+ IP rights developed in-house.
Va Tech Wabag Limited is engaged in the business of water treatment, by providing end-to-end solutions like design, supply, installation, construction, and operational management of drinking water, wastewater management, desalination, and many more across various business models.
Va Tech Wabag Limited holds the 5th position in the world in suppliers of desalination plants. It has a global presence with operations in over 25 countries with a robust order book of Rs. 14,500 Crores.
It offers sustainable solutions involving Desalination, Waste Water Treatment, Recycle & Reuse, Effluent Treatment, Drinking Water, Zero Liquid Discharge, Sludge Treatment & Energy Recovery.
Va Tech Wabag Limited generates 81 percent of its revenue from EPC services and 19 percent from operation & maintenance services, and customer wise it generates 67 percent of its revenue from Municipal and 33 percent from Industrial.
Customer Base
It has a strong clientele base with well-known players like Pepsico, Reliance Industries, NMDC, Indian Oil, ONGC, Delhi Jal Board, CIDCO, Bangalore Water Supply and Sewage Board, and many others.
Future Initiatives
VA Tech Wabag Limited (WABAG) has entered into a strategic partnership with Peak Sustainability Ventures (PEAK) to establish 100 Bio-CNG plants, to set up these plants at sewage treatment facilities across India, providing a steady supply of organic feedstock in the form of sewage sludge which can be utilized to produce compressed biogas.
It is Actively working with municipal local bodies and industrial customers on a few projects which are in advanced stages for various strategic initiatives with a business potential of ~USD 200 Million.
Recent Work Orders
Its recent work orders involve work order worth Rs. 145 Crores from Chennai Petroleum Corporation Limited (‘CPCL’) towards Design, Engineering, Supply, Fabrication, Installation, and commissioning of Desalination Water pipelines between CPCL Manali Refinery & CPCL Desalination plant at Kattupalli.
Secondly receipt of EIB & KFW funded DBO order in Zambia for Waste Water Treatment Plants worth ~ Euro 78 Million ~Rs 700 Crore from Lusaka Water Supply and Sanitation Company to execute the EPC of two advanced Wastewater Treatment Plants of 54 MLD WWTP and a 19 MLD WWTP located in Ngwerere and Chunga, Zambia.
Written by: Bharath K.S
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