Water Management Stock engaged in providing end-to-end solutions for water management, treatment, and many more across various business models jumped upto 5 percent in the day’s trade upon receiving repeat work orders from Reliance Industries Limited.
Price Action
With a market capitalization of Rs. 9,322 Crores, the shares of Va Tech Wabag Limited were trading at Rs. 1,499 per equity share, up 2 percent from its previous day’s close price of Rs. 1,469.25. It has delivered a multibagger return of 235 percent in a year.
What Happened
Va Tech Wabag Limited has secured a large repeat work order from Reliance Industries Limited towards the Engineering Procurement, Construction (EPC), and other works for Water Treatment Systems for its Dahej and Nagothane facilities for a consideration ranging from Rs. 300 – 500 Crores.
Management Message
Mr. S Natrajan, Head-Sales & Marketing, India Cluster said, “RIL has been a Key Account of WABAG for almost three decades. This repeat order reinforces WABAG’s position as the most preferred supplier with RIL. We thank RIL for the continued trust and confidence reposed in WABAG. This order win is a testimony to WABAG’s continued technological superiority and leadership in Water treatment and Recycle for the Oil, Gas and Petrochemical Sector”.
In Addition, its recent work order was received from the Saudi Water Authority for the Engineering Procurement, Construction & Commissioning of a 300 MLD Mega Sea Water Desalination Plant in the Kingdom of Saudi Arabia for a consideration of Rs. 2,700 Crores.
About the Company
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 is the 3rd largest private water operator and holds 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. 107 Billion or Rs. 10,700 Crores
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.
Financials & Ratios
Its Revenue from operations grew by 13.33 percent YoY from Rs. 553 Crores in Q1FY24 to Rs. 626 Crores in Q1FY25, accompanied by profits of Rs. 50 Crores to Rs. 55 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 13.8 percent and a return on capital employed (ROCE) of 19.8 percent. It has maintained a debt-to-equity ratio of 0.16.
Written by: Bharath K.S
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