700% Returns: Multibagger Stock VA Tech Wabag Rises On Bagging An Order Worth Rs 145 Cr From CPCL

VA Tech Wabag, a leader in water treatment solutions, secured an order worth Rs 145 crore from Chennai Petroleum Corporation Ltd (CPCL) on Wednesday, January 1. The order involves the design, engineering, supply, fabrication, installation, and commissioning of desalination water pipelines, which will connect the CPCL Manali Refinery to the CPCL desalination plant at Kattupalli. The project is set to be completed over the next 12 months.

The collaboration between VA Tech Wabag and CPCL marks another key step in the company's long-standing relationship with the petroleum giant. "CPCL has been a key customer of Wabag, and we are happy to be chosen to deliver this project," said S Natrajan, head sales and marketing, India cluster.

In addition to this domestic win, the company recently secured an international contract worth €78 million (approximately Rs 700 crore) from Lusaka Water Supply and Sanitation Company in Zambia. This order involves executing the Engineering, Procurement, and Construction (EPC) of two advanced wastewater treatment plants in the Zambian cities of Ngwerere and Chunga. With a combined treatment capacity of 73 Megaliters Per Day (MLD), this project will span 36 months, followed by 24 months of Operation & Maintenance to ensure sustainable performance and efficiency.

While these new orders highlight VA Tech Wabag's growing footprint both in India and internationally, the company also faced a setback in December 2024. The company announced the cancellation of its $317 million (approximately Rs 2,700 crore) order for a 300 MLD Mega Sea Water Desalination Plant in Saudi Arabia. The Saudi Water Authority notified all tender participants on December 16, 2024, that the tender had been cancelled due to internal administrative procedures. VA Tech Wabag, in its regulatory filing, mentioned that it is engaging with the customer to understand the reasons behind the decision.

The cancelled contract involved a comprehensive scope of work, including the design, engineering, supply, construction, and commissioning of the 300 MLD desalination plant, which was planned to be developed at a greenfield site on the Red Sea coast near Yanbu al-Bahr.

On the stock market front, VA Tech Wabag's shares were trading with gains of over 1%, reaching Rs 1,665 per share. The stock has delivered multibagger returns of more than 160% in the last year.