In terms of technicals, the relative strength index (RSI) of VA Tech Wabag stands at 41.2, signaling it's trading neither in the overbought nor in the oversold zone.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 50 lakh shares or 8.02 per cent stake in the firm at the end of June 2026 quarter.
After delivering a CAGR of 7%/17%/28% in revenue/EBITDA/APAT over FY21-26, MOFSL estimates a CAGR of 19%/26%/23% over FY26-28.
Strong free cash flow (FCF) generation, net cash of Rs 10 billion plus, and improving return ratios (pre-tax RoCE/RoIC of 23%/ 36% in FY28E) make VA Tech Wabag attractive at 21x FY28E P/E. "We reiterate our BUY rating on the stock with a target price of Rs 2,529 (based on 28x FY28E P/E," said the brokerage.
The company's current order book of Rs 20,000 crore (5 times FY26 revenue; 40% of the order book from the Middle East) and a strong bid pipeline provide visibility into 15-20% revenue growth over the next 3-4 years, added the brokerage.
VA Tech Wabag Limited is engaged in the water treatment field. The company's principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. It provides solutions for drinking water treatment, industrial and process water treatment, water reclamation, sea and brackish water desalination, municipal waste water treatment, industrial waste water treatment and sludge treatment.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.