Archive · 23 Jul 2025
VATW Receives 'Buy' Rating: Strong Growth Outlook Predicted
A financial company called VA Tech Wabag (VATW) is recommended as a good investment by a broker, with a target price of ₹1,900.
This is because they have a lot of projects lined up, giving them a clear path for growth.
VATW focuses on projects that make them good profits, and they are expected to keep making a lot of cash each year.
They've been growing quickly and are expected to continue this growth over the next few years, making them a potentially successful company.
VA Tech Wabag (VATW) receives a 'BUY' rating with a target price of ₹1,900.
VATW has a strong order book of approximately ₹13,700 crore, providing revenue growth visibility.
The company focuses on large-scale projects in high-margin segments such as EP and O&M.
VATW's FY21-25 revenue/EBITDA/PAT CAGR was 4%/18%/28%; FY25-28E is estimated at 17%/22%/23%.
The company is expected to sustain strong Free Cash Flow (FCF) generation, averaging ₹350 crore annually over FY25-28E.
- Who
- VA Tech Wabag (VATW) is the company analyzed.
- What
- VA Tech Wabag (VATW) receives a 'BUY' rating with a target price of ₹1,900.
- When
- Published on July 23, 2025. The growth is expected to continue through FY28.
- Where
- The projects and operations are not specific to a single location, but focused globally.
- Why
- Due to a strong order book, improving margins, healthy cash flow generation, and a focus on high-margin projects.
- Target Price
- ₹1,900
- Current CMP
- ₹1,588
- Rating
- BUY
- Order Book
- ₹13,700 crore
- FY21-25 Revenue/EBITDA/PAT CAGR
- 4%/18%/28%
- FY25-28E Revenue/EBITDA/PAT CAGR
- 17%/22%/23%
- Average FCF (FY25-28E)
- ₹350 crore annually
