2 weeks ago
Axis Direct bullish on VA Tech Wabag's record order book
VA Tech Wabag is a company that builds big water cleaning plants for cities and industries.
These plants turn dirty or salty water into clean water that people can use.
Recently, the company got a lot of new orders, worth Rs 19,400 crore.
That is more than four times the money the company makes in a whole year.
Because of all these orders, the company knows it will have plenty of work for many years.
The company also earned 21% more money than it did at the same time last year.
It has saved a big pile of cash, with no debt to worry about.
A stock market expert called Axis Direct thinks the company's shares will keep doing well.
The company is winning projects in places like Kuwait and the United Arab Emirates.
It has a plan called 'Vriddhi 2.0' that it will share in May 2027.
Axis Direct turned bullish on VA Tech Wabag, noting the stock is up 92% from its 52-week low.
The company's order book hit a record Rs 19,400 crore, more than four times its annual revenue.
Q1FY27 consolidated revenue rose 21% year-on-year to Rs 887 crore, with FY27 revenue growth guidance retained at 15–20%.
Order inflows in Q1FY27 crossed Rs 3,400 crore, with international projects contributing around 77%, including desalination and wastewater wins in Kuwait and the UAE.
VA Tech Wabag reported RoCE of 19.6% and RoE of 16%, and expects to unveil its 'Vriddhi 2.0' strategy in May 2027.
- Who
- VA Tech Wabag, the water-treatment company, with brokerage Axis Direct turning bullish on its stock.
- What
- Record order book of Rs 19,400 crore and strong Q1FY27 results, including 21% year-on-year revenue growth to Rs 887 crore.
- Where
- Kuwait and the UAE, where the company won desalination and wastewater treatment projects; the company's international exposure is growing.
- When
- Q1FY27 reporting period; the 'Vriddhi 2.0' strategy is expected to be unveiled in May 2027.
- Why
- The record order book provides multi-year revenue visibility, while the asset-light model and healthy cash position support returns.
Key facts
- Order book
- Rs 19,400 crore (record, more than 4x annual revenue)
- Q1FY27 revenue
- Rs 887 crore, up 21% YoY
- FY27 revenue growth guidance
- 15–20%
- Net cash
- Rs 965 crore (14th consecutive quarter, excluding HAM)
- Q1FY27 order inflows
- Over Rs 3,400 crore
- International share of inflows
- Around 77%
- RoCE / RoE
- 19.6% / 16%
- Stock gains
- 472% in five years; up 92% from 52-week low
Sources
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