The shares of the water treatment solution provider fell around 6 percent after UBS Principal Capital Asia offloaded 5.04 lakh equity shares in the company.
With a market capitalization of Rs 10,941.16 crore, the shares of VA Tech Wabag Ltd were trading at Rs 1,758.60 per share, decreasing around 5 percent as compared to the previous closing price of Rs 1,856.20 apiece.
Reason for fall:-
The shares of the company have seen bearish movement after UBS Principal Capital Asia, an Fii offloaded 5.04 lakh equity shares which is equivalent to a 0.81 percent stake at an average price of Rs 1,869.73 per share, amounting to Rs 94.32 crore.
However, iShares Global Water Ucits ETF bought a 6.41 lakh equity share, representing a 1.03% stake in the company at an average price of Rs 1,875.14 per share, valued at Rs 120.2 crore.
Key projects:-
The company secured a 400 MLD seawater reverse osmosis (SWRO) project in Perur, valued at approximately Rs 4,400 crore. It is also executing a Rs 1,187 crore project under the Namami Gange Programme for a 150 MLD sewage treatment plant and 453 km sewerage network in Patna.
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Other key projects include a 200 MLD sewage treatment plant in Pagla, Bangladesh, and an effluent treatment plant for Saudi Aramco in Ras Tanura. These large-scale projects underscore the company’s growing footprint in water treatment infrastructure, both domestically and Internationally.
Trusted Clients:-
The company has strong clients including municipal organizations like CIDCO, BUIDCO, Delhi Jal Board, Dhaka Wasa, and Uttar Pradesh Jal Nigam, along with industrial giants such as Reliance, ONGC, Petronas, Indian Oil, NMDC, and Pepsico. The company boasts over 125 IP rights and R&D centers in India and Europe.
Management guidance:-
Management anticipates a CAGR revenue growth of 15-20% from FY27 to FY29, with EBITDA margins between 13%-15%. The order book is expected to be three times revenue, focusing on 50%+ international projects and 20% of total revenue from O&M while remaining asset-light.
New Initiatives:-
In FY24, the company formed a strategic partnership with Peak Sustainability Ventures to establish 100 Bio-CNG plants across India, the GCC, Africa, and Europe, with a potential value of ~$200 million. Additionally, it launched “BLUE SEED” to support and invest in early-stage water technology start-ups.
Company profile:-
Va Tech Wabag Ltd operates in the water treatment industry. Its primary responsibilities include the design, supply, installation, building, and operation of drinking water, wastewater, industrial water, and desalination plants.
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Written by:- Abhishek Singh
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