One of the Jhunjunwala stocks is engaged in the business of water treatment field has jumped an intraday high of 6.68 percent after securing an order of Rs. 700 crore from Lusaka Water Supply and Sanitation Company (LWSC) in Zambia.
Stock Price Movement:
In Friday’s trading session, Va Tech Wabag Limited’s share jumped to an intraday high of 6.68 percent from the previous close of Rs. 1,584.20. The stock opened at Rs. 1,649.85 and is currently trading at Rs. 1,658.95, with a high of Rs. 1,690 and a low of Rs. 1,658.95. The market capitalization now stands at approximately Rs. 10,284.43 crore.
What Happened:
Va Tech Wabag has secured a €78 million (~INR 700 crore) Design, Build & Operate (DBO) order from Lusaka Water Supply and Sanitation Company (LWSC) in Zambia, marking its entry into the country.
The project involves constructing two advanced wastewater treatment plants (54 MLD and 19 MLD) in Ngwerere and Chunga, with a 36-month EPC phase followed by 24 months of operation and maintenance.
The plants will use sustainable energy sources, including biogas and solar power, ensuring long-term efficiency and environmental sustainability.
Business Highlights:
Va Tech Wabag Limited has secured a prestigious 300 MLD seawater desalination plant in Yanbu, Saudi Arabia, valued at ₹2,700 crores, with completion scheduled in 30 months. The company also won a ₹1,000 crore order from Indosol Solar for a 100 MLD desalination plant supporting a 10 GW solar facility.
Additionally, Va Tech Wabag received repeat orders from Reliance Industries for water systems and from Chennai Metro Water Supply for the Nemmeli desalination plant’s operation and maintenance, valued at ₹415 crores.
Margin Guidance:
Va Tech Wabag Limited expects an EBITDA margin between 13% and 15% over the medium term. The company focuses on advanced technology projects with strong payment securities to improve profitability and ensure sustainable growth.
Order Book and Revenue Visibility:
Va Tech Wabag Limited secured over ₹4,600 crores in order inflows during H1 FY25, with 57% from international clients and 31% from the industrial sector.
The company holds a preferred bidder status in projects worth ₹3,500 crores, with an expected order book of over ₹16,000 crores by FY25’s end. The order book comprises 59% EPC projects and 41% O&M projects, ensuring strong revenue visibility and growth prospects.
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Recent quarter results and ratios:
Va Tech Wabag Limited’s revenue has increased from Rs. 665 crore in Q2 FY24 to Rs. 700 crore in Q2 FY25, which has grown by 5.26 percent. The net profit of Va Tech Wabag Limited has also grown by 16.67 percent, from Rs. 60 crore in Q2 FY24 to Rs. 70 crore in Q2 FY25.
Va Tech Wabag Limited’s revenue and net profit have grown at a CAGR of 2.80 percent and 31.35 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 19.8 percent and 13.8 percent, respectively. The debt-to-equity ratio of the company is to be 0.22x, which shows the company is almost debt-free. Va Tech Wabag Limited’s EPS is to be Rs. 42.
Shareholding Pattern
In September 2024, Va Tech Wabag Limited had a majority stake held by the promoters at 19.12 percent, foreign institutional investors at 14.68 percent, domestic institutional investors at 3.59 percent, and the public at 62.59 percent.
In the public holding, Rekha Rakesh Jhunjunwala holds an 8.04% stake in Va Tech Wabag Limited.
Company Overview:
Va Tech Wabag Limited was established in 1996 and is a leading provider of water and wastewater treatment solutions. The company specializes in designing, supplying, installing, and managing plants for drinking water, wastewater treatment, and industrial water treatment.
Written By – Nikhil Naik
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