Rekha Jhunjhunwala Stock Hit 52-Week-High On Order Deal of Rs 420 Cr

A small-cap firm VA Tech Wabag operates in the water supply and management industry. WABAG has been involved for over 90 years, making it a pioneer in the field of overall water management today. WABAG has a history of successfully completing more than 6000 municipal and industrial projects throughout the globe. The stock opened at Rs 486.05 apiece on Wednesday and went on to hit a fresh 52-week-high of Rs 497.25 during the morning deals after the company secured a contract worth Rs 420 crore from Cidco.

The company said today that it has secured an order worth about INR 420 Crores towards Design, Build and Operation (DBO) of a Water Treatment Plant (VVTP) with a capacity of 270 Million Litres per Day (MLD) at Jite, Raigad for City and Industrial Development Corporation of Maharashtra Limited (CIDCO).

Commenting on this order win, Mr. Shailesh Kumar, CEO - India Cluster said, "This is an important and strategic success for us, as we foray back into the DBO space in Maharashtra with this breakthrough order in CIDCO. This project was won against tough competition based on our technical superiority and competitiveness and we are thankful to our client for the confidence they have reposed in us. This project once completed will address the growing water need of the area and also be a key reference in our journey."

"The scope of the project includes Design, Engineering, Supply, Construction, Installation and Commissioning of the 270 MLD WTP including clear water pumping station within a period of 42 months from commencement and followed by Operation & Maintenance (O&M) for a period of 15 years. The plant will use High Rate Clarifiers for the removal of high-suspended solids followed by Rapid Gravity Sand Filters along with disinfection by chlorine," said VA Tech Wabag in a statement.

In the quarter that ended in March 2023, the firm reported a net loss of Rs 111.10 crore as opposed to a net profit of Rs 46.07 crore in the same quarter a year earlier. Its revenue from operations in Q4FY23 rose to Rs 926.86 crore from Rs 891.86 crore in Q4FY22.

During Q4FY23, the company reported promoters shareholding of 19.12%, FIIs stake of 16.57%, DIIs stake of 3.25% and public stake of 61.07%. As per the shareholding pattern of VA Tech Wabag for January to March 2023 quarter Rekha Jhunjhunwala wife of late investor Rakesh Jhunjhunwala held 50,00,000 fully paid up equity shares or 8.04% stake in the company.