Va Tech Wabag Share Price Jumps On Wastewater Treatment Contract Win

Shares of Va Tech Wabag Ltd. rose over 8% on Wednesday after it won a contract for a wastewater treatment plant in Bahrain.

The pure-play water technology company has secured a seven-year contract from BAPCO Refining B.S.C for operation of an industrial wastewater plant in Bahrain, Wabag said in an exchange filing on Wednesday.

The Rs 121-crore ($14 million) project will treat 4,400 US gallons of wastewater per minute. The company said the plant is based on advanced membrane bioreactor technology, ensuring superior treatment efficiency, and meeting stringent environmental and industrial standards.

Va Tech Wabag is already operating the 40-MLD Madinat Salman Sewage Treatment Plant in Bahrain since November 2018.

The company last month also bagged orders for wastewater treatment plants worth Rs 700 crore from a company in Zambia. Va Tech will design, build and operate wastewater treatment plants for Lusaka Water Supply and Sanitation Co. funded by European Investment Bank and Germany's Kreditanstalt für Wiederaufbau.

The EPC phase will last for 36 months, followed by 24 months of operation and maintenance to ensure long-term performance and efficiency. Most of the energy required for the wastewater treatment plants will be sourced sustainably, using a mix of biogas and solar power, it said.

Shares of Va Tech Wabag rose as much as 8.19% to Rs 1,313 apiece, the highest level since Jan. 24. It pared gains to trade 7.72% higher at Rs 1,307.30 apiece, as of 11:53 a.m. This compares to a 0.68% advance in the NSE Nifty 50.

The stock has risen 102.35% in the last 12 months. Total traded volume so far in the day stood at 0.9 times its 30-day average. Relative strength index was at 35.

Out of four analysts tracking the company, three maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 57.1%.