The shares of the water treatment solution provider gained up to 4 percent after the company received a mega order from Indosol Solar Private Limited worth Rs 1,000 crore.
The shares of VA Tech Wabag Ltd were trading at Rs 1,690.75 per share, increasing around 1.22 percent as compared to the previous closing price of Rs 1,670.45 apiece. The market capitalization of Rs 10,477.53 crore.
Reason for rise:-
The shares of the company have seen positive movement after VA Tech Wabag Ltd received a mega order from Indosol Solar Private Limited for a 100 MLD Sea Water Desalination Plant worth Rs 1,000 crore.
Furthermore, the order covers the Engineering Procurement (EP) scope of design, engineering, supply, installation, testing, and commissioning of the 100 MLD desalination plant, which will be implemented over a 38-month period, followed by a 15-year operation and maintenance (O&M) contract.
Moreover, this facility will be developed using cutting-edge desalination technology intended for maximum energy efficiency and water output to satisfy the needs of Indosol Solar’s 10 GW integrated solar PV manufacturing complex in Andhra Pradesh.
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.
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.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
