The shares of VA Tech Wabag shot up 12.21% on Monday’s early trades to reach a fresh 52-week high of ₹ 374.90 apiece on the National Stock Exchange (NSE). The stock surpassed its previous high of ₹ 351.00 apiece, which it reached on November 29, 2022.
VA Tech Wabag is a leading pure-play water technology Indian Multinational Group that offers a wide range of solutions focused on conservation, optimization, recycling and reuse of resources, directed at addressing water challenges across the world. It has been in the industry for more than 90 years.
The company informed the exchanges that its European subsidiary had secured a repeat order worth about ₹ 260 crores from Purolite S.R.L, Romania towards upgrading their Industrial Wastewater Treatment plan.
This contract will be an Engineering & Procurement (‘EP’) scope contract which includes design & engineering, equipment supply, installation, commissioning and start-up of the Purolite Victoria WWTP. The project is scheduled to be executed over a 24-month period.
Its shares were trading at ₹ 370.10 apiece at 12:18 pm on Monday and 49,39,040 shares changed hands on the NSE. The volumes on the counter increased by more than 12-fold.
“It is a matter of extreme pride for us to have bagged this key industrial order and we thank Purolite for the confidence they have reposed in us. We have already built a wastewater treatment plant for Purolite and this repeat order is indeed a great testament of the trust that the customer has, regarding our capability and competencies. Wabag Romania specializes in design and construction of industrial water plants and this project will be another marquee reference for us,” said Mr. Erwin Moetz, CEO – Wabag Romania.
VA Tech Wabag is a small-cap company with a market capitalization of ₹ 2078 crores. It has a return on equity of 8.95% and an ideal debt-to-equity ratio of 0.24. Its shares are trading at a price-to-equity ratio (P/E) of 12.87 which is lower than the sector P/E of 17.77. This indicates that the company is undervalued as compared to its peers.
Written by Simran Bafna
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