Va Tech Wabag Secures Order Worth Rs 700 Crore In Zambia

Va Tech Wabag Ltd. bagged wastewater treatment plants order worth Rs 700 crore from a company in Zambia.

Va Tech will design, build and operate a wastewater treatment plants for Lusaka Water Supply and Sanitation Co. funded by European Investment Bank and Germany's Kreditanstalt für Wiederaufbau, according to an exchange filing on Friday.

The project will help in improving the company's presence in Africa along with "reinforcing its role as a comprehensive water solutions provider in the continent," the filing said.

The pure-play water technology provider will make use of the engineering, procurement, and construction mode for two of its projects situated in Ngwerere and Chunga, Zambia.

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.

On Dec. 18, Saudi Water Authority cancelled a 300 MLD mega sea water desalination plant order with Wabag. The Rs 2,700 crore order stood cancelled due to the authority's internal administrative procedures.

Wabag is a pure-play water technology multinational providing solutions focused on conservation, optimisation, recycling and reuse of resources. It is focused on solving water challenges across the world.

Shares of Wabag closed 3.80% higher at 1,646.20 per share on the National Stock Exchange. In contrast, the benchmark Nifty rose 0.27%. The stock has risen 169.58% in last 12 months and 162.22% year-to-date basis.

Out of the four analysts monitoring the company, three have a 'buy' rating on the stock and one maintains 'hold', according to Bloomberg data. The average of 12-month analysts' price targets suggests a potential upside of 24.2%.