Shares of this smallcap company jumps 4 percent in Monday’s trading session after receiving worth of about 49 million US dollars for three Wastewater Treatment Plants in Nepal. The shares have delivered a multibagger return of 113 percent to its shareholders in one year.
With a market capitalization of Rs. 5,602 crores, the shares of Va Tech Wabag Ltd started Monday’s trading session on a higher note at Rs. 880 compared to its previous close of Rs. 865.70. During the trading session, the shares hit a high of Rs. 915, gaining 4 percent and are currently trading at Rs. 899 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had secured a repeat order of about 49 million US dollars from Kathmandu Upatyaka Khanepani Limited (KUKL), funded by the Asian Development Bank (ADB).
The order entails Design, Build, Operate (‘DBO’), towards three Waste Water Treatment Plants (WWTP) in Nepal at Sallaghari, Kodku and Dhobighat to treat about 69 MLD of Waste Water, and is expected to be completed in 24 months, followed by a five-year operation and maintenance (O&M).
Furthermore, the company stated that as part of this project, Green Fuel (Biogas) will be generated through Activated Sludge Treatment, producing Green Energy that will be captively used in the operation of WWTPs, thereby reducing Green House Gas (GHG) emissions and optimising the cost of operations.
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.
Earlier, on 7th May 2024, the company had won an 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.
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. 437.7 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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