Archive · 23 Jul 2025
Brokerage Initiates 'Buy' Rating for VA Tech Wabag
A brokerage firm recommends buying shares of VA Tech Wabag (VATW), setting a target price of ₹1,900.
They believe the company will grow because it has a lot of projects lined up, and it is getting better at making money.
VATW is choosing projects carefully to make sure they are profitable.
The company focuses on big projects in areas that make more money, like water treatment.
Analysts think VATW will generate a lot of cash each year and expects the company to become even more profitable.
This positive outlook is expected to drive the company's financial performance in the coming years.
Brokerage initiates coverage on VA Tech Wabag (VATW) with a BUY rating and a target price of ₹1,900.
VATW's robust growth outlook is supported by a strong order-book and improving margins.
The company focuses on large-scale projects in high-margin segments like EP and O&M.
Analysts anticipate strong Free Cash Flow generation averaging ₹350 crore annually from FY25-28E.
Expansion in RoCE, RoE, and RoIC is expected over FY25-28E.
- Who
- Brokerage analysts
- What
- Brokerage initiates coverage on VA Tech Wabag with a BUY rating.
- When
- Published on July 23, 2025, with projections through FY28E.
- Where
- N/A
- Why
- Based on a strong order book, improving margins, and healthy Free Cash Flow generation.
- Target Price
- ₹1,900
- Current Market Price (CMP)
- ₹1,588
- Rating
- BUY
- Order Book
- ₹13,700 crore (4.2x FY25 revenue)
- FY25-28E Revenue CAGR
- 17%
- FY25-28E EBITDA CAGR
- 22%
- FY25-28E PAT CAGR
- 23%