VA Tech Wabag - Turning Water Problems Into Business Opportunities: Yes Securities

Various government schemes fueling the long-term growth.

<div class="paragraphs"><p>Water treatment process carried out by Va Tech Wabag Ltd. (Source: Company website)</p></div>
Water treatment process carried out by Va Tech Wabag Ltd. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

In our view increasing levels of water treatment will be an expanding area in the coming years given rising water scarcity and growing demand across sectors. There are significant low hanging fruit opportunities around water treatment with less than 30% of water being recycled.

Water treatment covers the processes used to make water more acceptable for a desired end-use, such as drinking water, usage or re-usage by industry, in irrigation, or return to the natural environment and this market is barely tapped. The goal needs to be to move to best-practice levels of water reuse of up to 75%.

Given the growing attention of the government towards escalating water shortage crisis and demand from industries for zero liquid discharge requirements, water treatment sector is well poised for long term growth.

In our view VA Tech Wabag Ltd.’s robust orderbook thriving on strong market leadership leading to healthy revenue visibility, execution ramp up and operational efficiencies would help it capitalise on the forthcoming opportunities.

At current market price, the stock trades at a price/earning of 11.1 times/ 9.5 times on FY24E/25E earnings estimates. We maintain our 'Buy' rating on the stock with a target price of Rs 636 based on 13 times PE on FY25E earnings.

Click on the attachment to read the full report:

Yes Securities VA Tech Wabag.pdf
Tata Steel - UK Restructuring: £500 Million Grant A Positive First Step: Axis Securities


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.