Rekha Jhunjhunwala-backed small-cap company secured an international repeat order worth 34 million euros, complete details inside!
The company's shares have delivered an impressive return of over 130 per cent in the past one year.
Va Tech Wabag is engaged in the business of the water treatment field. Its principal activities include the design, supply, installation, construction, and operational management of drinking water, wastewater treatment, industrial water treatment, and desalination plants.
The company announced that the company further cements its dominant presence in Tunisia with the acquisition of a recurring order from Office National De L’assainissement (ONAS). The consortium's order involves Design, Build, Operate (‘DBO’) services for a 36 MLD Wastewater Treatment Plant (WTP), with a value of 114.22 Million Tunisian Dinars (approximately Euro 34 Million), situated in Sousse Hamdoun II, Tunisia.
WABAG's remarkable track record with ONAS over three decades, combined with a technically superior and competitive bid, played a pivotal role in securing this repeat order, further solidifying WABAG's position in the North African region.
The project, financed by the French Development Agency (AFD), the European Investment Bank (BEI), and the European Union (EU), will span twenty-four (24) months of execution followed by a twelve (12) months Operation & Maintenance period. Under this order, WABAG's scope includes Engineering & Procurement (‘EP') and Operation & Maintenance (`O&M'), accounting for approximately half of the consortium order value. This encompasses the Design, Engineering, Supply, Installation, and Commissioning of the plant, followed by a One-year O&M phase.
Currently, the company's stock is trading at around Rs 942.20 per share on the BSE, with a market capitalisation of Rs 5,859 crore. Additionally, the stock has delivered a multibagger return of around 291 per cent in the past three years. The company has not yet released its Quarterly Results for Q4 FY24.
In Q3 FY24, Va Tech Wabag reported revenue of Rs 704 crore, representing a year-on-year growth of 8.11 per cent from Rs 652 crore in the same quarter last year. The company posted an operating profit of Rs 98 crore, compared to a profit of Rs 92 crore in the same quarter last year. The company’s net profit stood at Rs 63 crore in the December quarter.
Investors must keep this Small-Cap multibagger stock on their radar.
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