VA Tech Wabag remains a compelling play on India's water infrastructure and sustainability themes, supported by margin expansion, a robust order pipeline, and exposure to high-growth sectors such as data centers, semiconductors, solar cell manufacturing, and green hydrogen.
NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
Yes Securities reaffirms a Buy rating on VA Tech Wabag Ltd. with a revised target price of Rs 2,100, implying a 55% upside from the current market price of Rs 1,356.
VA Tech Wabag, a global leader in water and wastewater treatment solutions, is on track to deliver robust growth and margin improvement despite recent stock underperformance.
Margins to improve in coming quarters:
The company has secured several large projects in recent quarters, but the high-margin phases of these projects are yet to meaningfully contribute to revenues.
For example, Engineering and Procurement revenue recognition for Yanbu-al-Bahr, Indosol, and the Lusaka Water Supply project (Zambia) has not yet commenced, while material procurement-linked revenues for the Al Haer project are also pending.
We believe margins will see a significant uplift led by revenue recognition for these higher-margin components as well as operating leverage – which can take margins above the historical ranges.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
