Shares of this smallcap company jumped upto 3 percent in Tuesday’s trading session after receiving an order in Tunisia worth Rs. 304.93 crores. The shares have delivered a multibagger return of 113 percent to its shareholders in one year.
With a market capitalization of Rs. 5,580 crores, the shares of Va Tech Wabag Ltd started Tuesday’s trading session on a higher note at Rs. 939.75 compared to its previous close of Rs. 930.35. During the trading session, the shares hit a high of Rs. 963.90, gaining around 3 percent and are currently trading at Rs. 900 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had won AFD, BEI and EU funded, consortium order from ONAS, worth 114.22 Million Tunisian Dinars (approx. 304.93 crores) for a 36 MLD Wastewater Treatment Plant at Sousse Hamdoun II in Tunisia.
The scope under this order will be Engineering & Procurement (EP) and Operation and Maintenance (O&M), which is worth about half of the consortium order value. This includes the Design, Engineering, Supply, Installation and Commissioning of the plant followed by a One-year O&M phase.
Coming onto the company’s financial statements, the revenue increased by 6 percent from Rs. 665 crores during the September quarter to Rs. 703 crores in the December quarter. In addition, the net profits increased by 5 percent from Rs. 60 crores to Rs. 63 crores during the same period.
The company’s order book currently amounts to approximately Rs. 12,000 crores, encompassing a well-balanced combination of Engineering, Procurement, and Construction (EPC) as well as Operations and Maintenance (O&M) projects.
Furthermore, Va Tech Wabag is anticipating orders from international regions within the next 4 to 6 months and has submitted bids exceeding 1 billion dollars. Moreover, 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, it aims 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. 449.5 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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