525% Rally In 3 Years: Rekha Jhunjhunwala-Backed Multibagger Smallcap Stock Trades Ex-Dividend—Do You Own?

Shares of leading smallcap water technology company 'Va Tech Wabag' are trading ex-dividend on Tuesday, Aug 5. Notably, Va Tech Wabag has been an investor's favorite in the market as the smallcap stock has delivered massive multibagger returns over the past three-to-five year period.

Last month, the company had recommended a final dividend of Rs 4 per equity share for FY25 and fixed the record date as Aug. 5. Investors who own the stock may seek the benefits of the multibagger's dividend payout today.

In a regulatory filing to the stock exchanges, Va Tech Wabag said, "The board, at its meeting held on May 21, 2025, had recommended a final dividend of Rs 4 per equity share for the financial year ended March 31, 2025 and the “record date” for the purpose of determining list of members eligible to receive the final dividend is fixed as Tuesday, August 05, 2025."

"The final dividend, post approval of the Members at the 30th AGM, will be paid on or before September 10, 2025, through various modes, which shall be subject to deduction of tax at source," added Va Tech Wabag.

Investors looking to reap the benefit of the dividend payout must purchase their shares at least one day prior to the record date for their names to appear on the shareholders' list. To be eligible for a dividend, investors must hold shares as of the record date announced by any particular company.

Given the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible. Buying shares on the record date itself will not qualify, as the ownership will not be reflected in time.

Therefore, investors who had purchased the shares before Aug. 5 will be able to seek the benefits of the dividend. Shareholders who wish to be eligible for the final dividend must own Va Tech Wabag shares before the specified ex-dividend date.

Late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held an 8.04% stake in Va Tech Wabag, comprising 50,00,000 equity shares, at the end of the June 2025 quarter. The promoter and promoter group held 1,18,95,168 shares, or 19.13% stake in VA Tech Wabag, while the remaining 5,02,95,260 shares, representing 80.87% stake, in the company are held by public shareholders, as of 31 December 2024.

On Tuesday, the stock opened at Rs 1,619.95 and has lost 1.62% intraday so far. At 2:35, the stock traded 1.45% lower at Rs 1,534.40 apiece on the BSE. The smallcap company commands a market cap of Rs 9,551.04 crore. The relative strength index was 62.15. In the last one month, the stock has gained 5.40%, 16.54% in three months, and 10.57% in six months.

The stock has shed 6.25% on a year-to-date basis and 24.4% in the last one year. The stock has delivered stellar multibagger returns of 525% in three years. In the long run, it is currently up 1,183% over the last five years. In December, the stock recorded a fresh all-time high of Rs 1,944, toward the Rs 2,000 mark.

The leading domestic brokerage initiated a 'buy' rating, over expanding order book, improving margins and return ratios, and strong free cash flow generation. "Backed by industry tailwinds and execution capabilities, VA Tech Wabag has built a robust order pipeline," said the brokerage.

Motilal Oswal highlighted that VA Tech Wabag’s current order book stands at Rs 137 billion, 4.2 times its FY25 revenue, supported by a bid pipeline of Rs 150–200 billion. This provides visibility for 15–20% revenue growth over the next 3–4 years.

The order book includes a mix of O&M projects (39%, with execution cycles ranging from 5 to 20 years) and EPC projects (52%, with 2–3-year cycles). Motilal Oswal, in its bull case scenario, expects the stock to hit Rs 2,564. Under the base case scenario, Motilal Oswal has set a target price of Rs 1,900, while in the bear case scenario, the brokerage sees the stock falling to Rs 1,318.

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