VA TECH WABAG LTD. | 𝗦𝗲𝗰𝘂𝗿𝗶𝗻𝗴 𝗚𝗿𝗼𝘄𝘁𝗵 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗪𝗶𝗻𝘀

𝗥𝗲𝗰𝗲𝗻𝘁 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁:

Va Tech Wabag Ltd. has secured a 7-year operations contract worth INR 121 Cr for the BAPCO Refining Industrial Wastewater Treatment Plant in Bahrain.

𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

1. Consistent Operating Profit Growth: 6-year operating profit uptrend.

2. Reasonable Valuation: PE ratio of 31.5x, within the sector range of 30-60.

3. Institutional Entry: Potential for institutional investors to participate in the company's growth story.

4. Large Order Win: INR 121 Cr contract secured for the wastewater treatment plant in Bahrain.

5. Strong Order Book: INR 14,600 Cr as of September 2024, representing 4.9x of TTM revenue.

𝗙𝘂𝘁𝘂𝗿𝗲 𝗢𝘂𝘁𝗹𝗼𝗼𝗸:

As per the Q2FY25 concall, the company anticipates:

- Revenues to grow at a CAGR of 15-20% over the next 3-5 years.

- EBITDA margins to range between 13-15% over the same period.

𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄:

1. Market Capitalization: INR 8,185 Crore (as of January 29th, 2025).

2. Share Price: INR 1,316 per share (as of January 29th, 2025).

3. TTM PE: 31.5x (as on January 29th, 2025).

4. Retail Float: 37.0% (as of December 2024).

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗗𝗲𝘀𝗰𝗿𝗶𝗽𝘁𝗶𝗼𝗻:

Va Tech Wabag Ltd. is a global leader in total water management, offering a wide range of solutions focused on conservation, optimization, recycling, and reuse of resources.