Shares of this smallcap company jumped 3 percent in Tuesday’s trading session after bagging an Operation and Maintenance order worth Rs 85 crores. The shares have delivered a multibagger return of 112 percent to its shareholders in one year.
With a market capitalization of Rs. 6,106.79 crores, the shares of Va Tech Wabag Ltd started Tuesday’s trading session on a higher note at Rs. 982.10 compared to its previous close of Rs. 966.65. During the trading session, the shares hit a high of Rs. 1,005, gaining around 3 percent and are currently trading at Rs. 981 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had secured an order worth around 850 Million INR from Nama Water Services in the Sultanate of Oman towards Operation & Maintenance (O&M) of the Al Duqm Desalination Plant for a period of 5 years.
Furthermore, this 8 MLD Desalination Plant was constructed by Va Tech Wabag over 10 years ago and was responsible for the O&M of the Plant until 2018. The water produced from this Plant will be used for domestic consumption in the Duqm & Haima areas of Al Wusta Governorate.
Looking at the company’s financial statements, the revenue zoomed by 33 percent from Rs. 704.4 crores during the December quarter to Rs. 934.2 crores in the March quarter. In addition, increased by 25 percent from Rs. 62.6 crores to Rs. 78.1 crores during the same period.
As of March 2024, the company has an order book of Rs. 11,448 crores, encompassing a well-balanced combination of Engineering, Procurement, and Construction (EPC) as well as Operations and Maintenance (O&M) projects.
Moreover, Va Tech Wabag is anticipating orders from international regions within the next 4 to 6 months and has submitted bids exceeding 1 billion dollars and it is expecting a growth rate in the order book of 10 percent to 15 percent over the 2 years.
Additionally, the company is directing its attention towards the development of green hydrogen, semiconductors, and bio-CNG plants. Further, they aim to concentrate on expanding its presence in the Middle East and Africa to fuel future growth.
According to the BSE data, Mr late Rakesh Jhunjhunwala entered the stock in September 2020. Currently, his portfolio is taken care of by his wife Rekha Rakesh Jhunjhunwala. The Ace investor’s wife holds 50 lakh shares equivalent to 8.04 percent and the current value of the investment is Rs. 494 crores.
Headquartered in Chennai, Va Tech Wabag was incorporated in 1995. The company is engaged in the business of water treatment field. Its principal activities include the design, supply, installation, construction and operational management of drinking water, wastewater treatment, industrial water treatment and desalination plants.
Written By Vaibhav Patil
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