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VA Tech Wabag Share Price Target: VA Tech Wabag Ltd, a company engaged in water treatment for municipal and industrial sectors, witnessed strong trading on Monday. By noon, the stock rose nearly 6 per cent. Leading brokerage firm Motilal Oswal has issued its report on the stock as well. Veteran investor Rekha Jhunjhunwala holds 5 million shares of this stock, valued at Rs 50,000,000.
On BSE, the stock touched its day's high of Rs 1290.40, which is an increase of 6.27 per cent from its previous closing of Rs 1214.30.
VA Tech Wabag Share Price: Brokerage Report
The company’s current order book stands at over Rs 160 billion, which is nearly five times its estimated FY2025 revenue. Also, VA Tech Wabag is the preferred bidder for projects worth over Rs 30 billion, with a strong bid pipeline of Rs 150–200 billion. This provides strong visibility for 15-20 per cent revenue CAGR over the next 3-4 years.
According to management, all large projects are progressing on schedule. The company is focusing on overseas markets such as the Middle East, CIS, and Africa, where the working capital cycle and cash flows are better than in India. Along with this, the company is emphasizing profitable growth by selectively bidding in high-margin segments such as Industrial, EP, and O&M.
Key highlights from the management commentary
- All major projects are progressing well in line with the execution timeline.
- Focus remains on profitable growth and overseas markets. Middle East remains at the top, followed by CIS and African markets. Indian market is
- also gaining momentum, with tenders in advanced stages of finalization.
- Middle East and other overseas projects are relatively better in terms of working capital cycle and cash flows compared to Indian projects.
- The company secured fresh orders of Rs 47b+ during 9MFY26. Moreover, it is a preferred bidder in projects worth over Rs30b.
- It secured break-through orders in the future energy solutions sector for CBG plant in Uttar Pradesh and UPW, ETP, and ZLD for Renewsys in Hyderabad.
- The current order book of over Rs 160b (~5x FY25 revenue) supports 15- 20 per cent revenue CAGR guidance for the next 3-4 years.
- While the current order book is more inclined toward EPC projects having high volumes and relatively lower margins, VATW’s focus remains on profitable growth by selective bidding in high-margin EPC and O&M jobs.
VA Tech Wabag Share Price Target
Motila Oswal has set a target price of Rs 1,900 with a BUY call, an upside of 47 per cent from its current market price, Rs 1287.50 (BSE 2:35 PM).
VA Tech Wabag Share Price
At 2:35 PM on Monday, the share price was Rs 1287.50, up 6.03 per cent from its previous closing, on BSE.
VA Tech Wabag Q3 Results FY 2026
The company delivered strong Q3 results in line with market expectations. In Q3FY26 (October–December), the company’s revenue grew 19 per cent YoY, while adjusted EBITDA and PAT posted strong growth of 25 per cent and 37 per cent, respectively. EBITDA margin increased by 67 bps to 13.6 per cent, which is within the management’s guidance of 13-15 per cent.
Cash Flow and Balance Sheet Remain Big Strengths
The company's balance sheet continues to strengthen. At the end of the December quarter, VA Tech Wabag had Rs 8.9 billion in net cash, which exceeds Rs 10 billion when excluding HAM projects. Strong cash flows support future credit rating upgrades and valuation re-rating.
Strong Growth in Overseas Business
The company performed exceptionally well in foreign markets. Revenue from RoW (Rest of the World) grew 76 per cent YoY, with EBIT margin rising to 26.6 per cent. Meanwhile, India revenue declined 16 per cent, but margins improved by 176 bps, reflecting the company’s focus on profitability.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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