VA Tech Wabag Shares Record Worst Fall Since March 2020 After Saudi Arabia Order Cancelled

VA Tech Wabag Ltd.'s share price recorded its worst fall since March 17, 2020, a day after it announced that the Saudi Water Authority has cancelled a 300 MLD mega sea water desalination plant order.

The order cancellation happened pursuant to the authority's internal administrative procedures. "We are currently in touch with the customer to understand and comprehend the reasons in detail," it said.

On Sept. 6, the company had informed the exchanges that the order was worth Rs 2,700 crore and Wabag's impressive track record and technologically superior proposal were critical in winning this prestigious order.

The SWA is currently managing over 40 desalination plants, producing over 11 million cubic meters per day and over 139 ground and surface water purification stations producing over 4 million cubic meters per day.

Shares of the company fell as much as 19.17% to Rs 1,523.75 apiece, the highest level since Oct. 10. They pared loss to trade 16.5% lower at Rs 1,574.8 apiece, as of 9:42 a.m., compared to a 0.14% advance in the NSE Nifty 50.

The stock has risen 150.68% on a year-to-date basis. Total traded volume so far in the day stood at 47 times its 30-day average. The relative strength index was at 34.5.

Of the 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 32.3%.