Water Management Stock engaged in providing end-to-end solutions for water management, treatment, desalination and many more across various business models jumped upto 2 percent in the day’s trade upon receiving water management work order worth Rs. 145 Crores from Chennai Petroleum Corporation Limited.
Price Action
With a market capitalization of Rs. 10,324 Crores, the shares of Va Tech Wabag Limited were trading at Rs. 1,661 per equity share, up 1 percent from its previous day’s close price of Rs. 1,643.15. It has delivered a multibagger return of 160 percent in a year.
What Happened
Va Tech Wabag Limited has received a new work order from Chennai Petroleum Corporation Limited for the design, engineering, supply, fabrication, installation, and commissioning of Desalination Water pipelines between CPCL Manali Refinery & CPCL Desalination plant at Kattupalli for a consideration of Rs. 145 Crores and it is to be completed over 12 months.
About the Company
Va Tech Wabag Limited is engaged in the business of water treatment, by providing end-to-end solutions like design, supply, installation, construction, and operational management of drinking water, wastewater management, desalination, and many more across various business models.
Va Tech Wabag Limited is the 3rd largest private water operator and holds 5th position in the world in suppliers of desalination plants. It has a global presence with operations in over 25 countries with a robust order book of Rs. 14,500 Crores.
It has a strong clientele base with well-known players like Pepsico, Reliance Industries, NMDC, Indian Oil, ONGC, Delhi Jal Board, CIDCO, Bangalore Water Supply and Sewage Board, and many others.
Financials & Ratios
Its Revenue from operations grew by 4.95 percent YoY from Rs. 680.4 Crores in Q2FY24 to Rs. 714.1 Crores in Q2FY25, accompanied by profits of Rs. 60.2 Crores to Rs. 70.6 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 13.3 percent and a return on capital employed (ROCE) of 15.16 percent. It has maintained a debt-to-equity ratio of 0.22.
Written by: Bharath K.S
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