Va Tech Wabag’s shares have dropped 23% from their highest point in the past year, but many analysts are optimistic about a comeback. The stock, which is part of Rekha Jhunjhunwala’s portfolio, had an impressive rise before experiencing this decline. Even with the recent drop, Va Tech Wabag’s stock has gained 104% over the last year, much better than the Nifty50’s almost 7% increase.
Currently, the stock is trading above its 200-day moving average at Rs 1,375, which is considered strong support. The stock faces resistance at Rs 1,650. Nilesh Jain, a Vice President at Centrum Broking, suggests buying the stock as a long-term investment. He believes that the stock will improve more due to strong company performance rather than just price movements, especially during these unstable market times.
What Could Drive the Next Rise?
Aniket Jain from Yes Securities points out a promising development: Va Tech Wabag is partnering with overseas investors. They plan to invest up to $100 million to focus on projects in the municipal water sector. This project could lead to $1 billion worth of opportunities over the next few years, starting in India and moving into South-East Asia and Africa.
India is seeing more public-private partnerships (PPP), like cleaning the Ganga and Yamuna rivers, and other state-led projects. This partnership will help Va Tech Wabag grow its business and take on more significant projects without many financial risks, while still keeping a light asset strategy.
Yes Securities rates Va Tech Wabag as a ‘Buy’ with a target price of Rs 1,750, predicting better financial results and increased revenue in the coming years. They expect the company’s profit to rise to Rs 290 crore in FY25, up 16% from Rs 250 crore in FY24, and revenue to grow 11% to Rs 3,127 crore in FY25.
For Q3 FY25, the company reported a profit of Rs 70 crore, which is a 12% increase from last year. Revenue also rose 17% year-on-year to Rs 825.8 crore in the last quarter of 2023.
Today, shares of Va Tech Wabag fell by Rs 85, or 5.5%, closing at Rs 1,480.
(Disclaimer: The views and suggestions from experts are their own and not the opinions of Thellv.news)
Why You Should Consider Va Tech Wabag Stock Now
Discover why Va Tech Wabag, despite its recent drop, is still a strong investment opportunity. Analysts are optimistic as the company secures international partnerships.
Leave a Reply