Nomura Sees This Water Treatment Firm To Surge Further Up To 97%

The small cap company stock- Va Tech Wabag with 8.04% stake held by Rakesh Jhunjhunwala spurted in trade by as much as 15.59%. Later the stock at the closing settled with gains of 8.75% at Rs. 321.75 per share.

The company in the third -December ended quarter posted healthy performance. Net profit at the company inched higher both sequentially as well as YoY to Rs. 30.18 crore as against Rs. 28.11 crore.

The stock price spike in today's session has also been influenced after Nomura raised its target price on the stock to Rs. 634 per share, which is an upside of 97% from the current levels. Higher project mix of industrial and international orders, together with the pace of execution, drove the improved operating margins.

In addition, the company's margin of over 10% and strong debt reduction are among its key focus positives, states Nomura. The foreign brokerage values Va Tech Wabag at 15x FY24F EPS of Rs 41.8 and add book value of hybrid annuity model assets to arrive at the aforementioned set target price.

VA Tech Wabag is a multinational entity in the water treatment space with presence across India,India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia through principal offices in India, Austria, the Czech Republic, China, Switzerland, Algeria, Romania, Tunisia, UAE, Libya and Macao.The company a comprehensive range of solutions including conceptualization, design, engineering, procurement, supply, installation, construction and O&M services.

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