Buy Va Tech Wabag, target price Rs 337: ICICI Securities

ICICI Securities has buy call on Va Tech Wabag with a target price of Rs 337. The current market price of Va Tech Wabag is Rs 249.9.
Time period given by analyst is one year when Va Tech Wabag Ltd. price can reach defined target.

Va Tech Wabag Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 1544.19 Crore) operating in Engineering sector.

Va Tech Wabag Ltd. key Products/Revenue Segments include Contract Service and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 664.86 Crore, down -26.25 % from last quarter Total Income of Rs 901.50 Crore and down -1.10 % from last year same quarter Total Income of Rs 672.28 Crore. Company reported net profit after tax of Rs 28.08 Crore in latest quarter.

Investment Rationale
In FY23 Budget, there was an increased allocation of Rs600bn towards Jal Jeewan Mission. The Namami Gange phase-2 is expected to be tendered out soon. Additionally, as ESG regulations tighten and demand for water-related projects increases, industrial order inflow is likely to pick-up pace. Company has developed a strong niche in water treatment segment for industrial and government funded schemes, in domestic and international markets, where order pipeline continues to be strong.

Promoter/FII Holdings
Promoters held 21.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 15.35 per cent, DIIs 3.28 per cent.