The share price of the small-cap company rose by 6.8% to its intraday high of ₹647.6 per share from its previous close of ₹606 on Monday after the company signed an MOU for Installing 100 Bio-CNG Plants at Sewage Treatment Facilities.
According to the exchange filing, VA Tech Wabag Limited has signed an MoU with Peak Sustainability Ventures to establish 100 Bio-CNG plants at sewage treatment facilities in India, GCC, Africa, and Europe.
The initiative aims to use sewage treatment plants to produce Bio-CNG for trucks, vehicles, and industrial applications, thereby reducing reliance on fossil fuels. With a potential business value of over USD 200 million.
The collaboration will produce more than 73 million kgs of Bio-CNG per year, assisting India in meeting its emission reduction targets and promoting a cleaner, more sustainable future with environmental and economic benefits, according to the filling.
Looking at their financials, the company has reported its net revenue fell by 11% YoY from ₹750 crores in Q2FY23 to ₹665 crores in Q2FY24. In addition, net profit rose 30% YoY, from ₹46 crores in Q2FY23 to ₹60 crores in Q2FY24.
Va Tech Wabag Ltd is a small-cap company with a market capitalization of 3,900 crores, the share price of the company rose by 108% last year, and 20% in the last six months.
It is a multi-bagger stock, for instance, if an investor invested ₹1 Lakh a year ago the current value of the investment would be ₹2.08 Lakhs.
The promoter of the company owns 19%, the general public owns 61%, foreign institutional investors own 16%, and domestic institutional investors own 4%.
Va Tech Wabag Ltd operates in the water treatment field. Its primary responsibilities include designing, supplying, installing, constructing, and operating drinking water, wastewater, industrial water, and desalination plants.
Written by Sriram KV
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