VA Tech gains 7% on securing large repeat orders from Reliance Industries
Source: Business Standard
Shares of Va Tech Wabag quoted 4.13 per cent higher at Rs 1,529.95 per share
VA Tech Wabag share price surged 6.9 per cent on Thursday, October 10, and registered an intraday high of Rs 1,534.65 per share on the BSE. The share price gained after securing large orders from Reliance Industries (RIL). The orders are for water treatment systems for Dahej and Nagothane facilities.
At around 10:10 AM, VA Tech Wabag quoted 4.13 per cent higher at Rs 1,529.95 per share. In comparison, the BSE Sensex traded 0.18 per cent higher at 81,611.72 around the same time.
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As per the filing, the order ranges between Rs 300 crore to Rs 500 crore.
Earlier, on September 6, VA Tech Wabag won an order from Saudi Water Authority worth $317 million (Rs 2,700 crore) towards a 300 MLD mega seawater desalination plant in Saudi Arabia.
In a report dated September 9, ICICI Securities maintained ‘Buy’ on VA Tech Wabag and made an upward revision on target to Rs 1,541 from 1,445 per share after the company bagged order from Saudi Arabia.
The brokerage said that Wabag is the only pureplay and sizeable player on the theme of rising investment in the water treatment space.
It added: The company, with its end-to-end solutions platform, strong brand, asset-light business model, reference list (in India and key overseas geographies) and healthy visibility, is in a sweet spot to capture the increasing capex in the water segment – domestic and internationally.
ICICI Securities believes VA Tech Wabag offers a structural long-term story.
Wabag is a global leader in the water industry backed by rich experience spanning over 100 years. Wabag offers total water solutions in both municipal and industrial sectors.
Wabag builds water and wastewater infrastructure covering design, engineering, supply, construction, installation, start up, and long term operational management across various business models.
In the past one year, shares of VA Tech Wabag have gained 223 per cent against Sensex’s rise of 23 per cent.
First Published: Oct 10 2024 | 10:50 AM IST
