This water management stock engaged in the design, construction, operation, and maintenance of water treatment and desalination plants for municipal and industrial clients, jumped 9 percent after investing up to $100 million in water treatment and infrastructure projects.
Stock Price Movement:
With a market capitalization of Rs. 9,290.63 crores, the share of Va Tech Wabag Limited has reached an intraday high of Rs. 1,510 per equity share, rising nearly around 8.85 percent from its previous day’s close price of Rs. 1,387.25. Since then, the stock has retreated and is currently trading at Rs. 1,493.90 per equity share.
What Happened:
VA TECH WABAG (WABAG) has entered into a non-binding partnership with an investor consortium, including Norfund, to create a dedicated platform for municipal capital projects. The platform will invest up to USD 100 million over the next 3 to 5 years, focusing on water treatment and infrastructure projects. WABAG will provide EPC and O&M services, aligning with its asset-light strategy to promote sustainable water management and support municipal sector growth.
Order Book:
The company has a strong order book worth Rs. 14,263.4 crores, with 58 percent of the projects being Engineering, Procurement, and Construction (EPC) and 42 percent being Operations and Maintenance (O&M). Around 40 percent of this order backlog comes from international projects and 60 percent of orders from domestic markets. This highlights the company’s global presence and diverse project portfolio.
Recent Order in Q3 FY25:
In the last quarter, the company secured several major orders, including a Rs. 3,251 crore project for a 200 MLD Sewage Treatment Plant in Riyadh, Saudi Arabia. They also received an Rs. 121 crore O&M order for the BAPCO Refining Industrial Wastewater Treatment Plant in Bahrain, a Rs. 700 crore design, build, and operating order in Zambia, and a Rs. 145 crore order from Chennai Petroleum Corporation for a desalination water pipeline.
Clientele:
WABAG works with a diverse range of clients across municipal, industrial, and funding sectors. Key municipal clients include Delhi Jal Board and PUB, while industrial clients include Reliance, Indian Oil, NMDC, and ONGC. The company also collaborates with funding agencies like the World Bank, KFW, and ADB, serving sectors like water, oil, and power.
Shareholding Pattern:
Rekha Jhunjhunwala holds an 8.04 percent stake in Va Tech Wabag Limited, valued at Rs. 742.7 crores, consisting of 50 lakh shares.
Recent quarter results:
Va Tech Wabag Limited’s revenue has increased from Rs. 704 crore in Q3 FY24 to Rs. 811 crore in Q3 FY25, which has grown by 15.88 percent. The net profit has also grown by 11.11 percent from Rs. 63 crore in Q3 FY24 to Rs. 70 crore in Q3 FY25.
Written by – Nikhil Naik
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