View 8 reports from 3 analysts offering long term price targets
for Va Tech Wabag Ltd..
Va Tech Wabag Ltd. has an average target of 375.00. The consensus estimate
represents an upside of 12.55%
from the last price of 333.20.
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Q2FY22 revenue grew by 12% YoY aided by strong execution in domestic EPC and international O&M operations. Despite higher RM costs, EBITDA margin improved by 116bps YoY to 8.3% due to pick up in execution & project mix. The management maintained its FY22 EBITDA margin of 10% to 11% as most of the projects have a price escalation clause. Order book remain strong at Rs.10,040cr (3.2x TTM revenue) which provides strong visibility for the next two to three years....
VA Tech Wabag’s Q2FY22 healthy performance was supported by pick-up in execution leading to healthy operating margins. Revenues grew 12.4% YoY to Rs 6.8bn.
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Q4FY21 revenue grew by 27% YoY aided by strong execution in domestic (37% YoY) and international operations (29% YoY). Despite higher RM costs, EBITDA margin improved by 118bps YoY to 7.8% due to lower employee cost & other expenses. Order book remain strong at Rs.9,584cr (3.4x FY21 revenue) led by 17% increase in order intake in Q4FY21. Management refrained from providing order inflow and revenue guidance for FY22 due to pandemic situation. Debt level has shown significant reduction to Rs.305Cr against...
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Company registered better than expected revenue of Rs.796Cr registering a growth of 17.2%YoY and 30.8% QoQ. We expect revenue to grow at a CAGR of 11.7% over FY20-23. Increased government focus on water recycling and higher budgetary spend will boost the order intake going forward. Debt level has shown significant reduction and stands at Rs.383Cr against Rs.482Cr in FY20 and Rs.392Cr in Q2FY21. We expect further decline in debt level due to improved revenue generation. Considering the positive outlook of the water treatment industry and expected revenue rebound along with improving cash position, we value the stock at 1 year forward PE of 10.5x its FY23E earnings...
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
Current order backlog at Rs.11,045cr (3.8x last 3-year average annual revenue) provides strong visibility for the next 4 years. However, a higher mix of municipal orders (85%) adds concerns on receivables. The debt level has gone up due to working capital issues. A slight recovery is seen in recent quarters. Even though an improvement is seen in revenue generation during H2FY20, company is expected to generate lower revenue in H1FY21 due to lockdown and other restrictions....
In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...
Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking water plants and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting...
The order backlog of the company remains at | 10,826 crore excluding framework contracts against TTM revenues of | 2451 crore, representing TTM book-bill of 4.4x. The management believes the company would achieve its annual revenue guidance of | 3000 crore (9M revenues of | 1772 crore) but we expect the company to be able to execute contracts worth | 800-900 crore in the last quarter given that old receivables are already stuck at present and any large growth could distort balance sheet, going ahead. Further, delay in proceeds from old receivables such as TSGENCO, Tecpro...
Sector: Engineering & Capital goods /Mid Cap | Earnings Update 2QFY20 Background: VA Tech Wabag is a leading MNC in the water treatment space. The company has vast experience in plant building, planning, execution and operation of drinking and waste water plants for both municipal and industrial sectors. The company has a multinational pedigree and offers customer specific solutions. The company has about 100+ patents which include both products and process patents and Wabag Austria has 51 patents that are awaiting approval. As part of organizational...
sales declined 15% YoY to INR6.4b (v/s est. The sales disappointment was due to key overseas projects, such as AMAS and RAPID, getting completed, whereas Europe recorded subdued performance. EBITDA was up 23% YoY to INR615m, 13% below our est. EBITDA margin stood at 9.7% (+310bp YoY) and above our estimate of 8.5%. Margin expansion came in due to projects being in the engineering and procurement phase. PBT stood at INR363m, up 28% YoY but 14% below our est. Adj. PAT stood at INR271m, up 19% YoY and 8% below our est.
Healthy inflows in FY19, FY20E guidance at ~| 5200 crore Wabag witnessed order inflows of | 4878 crore in FY19. Key orders won include SWTP in Saudi Arabia (| 933 crore), desalination order in Tunisia (| 596 crore), STP order in Doha (| 555 crore) and Namami Gange orders worth | 1035 crore. The management has guided for order inflows of | 5000-5400 crore in FY20E. This is on the back of orders expected from large projects like the desalination and sewage treatment plants in Chennai, Mumbai (| 11000 crore) and Delhi (| 1500 crore). Wabag has already been declared...
Order backlog providing robust revenue visibility: Order backlog as on date stands at INR85.9b (+26% YoY in 4QFY19), with order inflow of INR13.1b (-21% YoY). VATW has also signed framework contracts worth INR7b, which will get converted into firm orders after receiving advance from customers. The current order backlog provides strong revenue visibility of INR3.1x its FY19 revenue. VATW won two orders under the Namami Gange scheme worth INR10b, which will entail equity investment of INR150m. Issues revenue and order inflow guidance for FY20: Management has issued...
ICICI Securities Ltd | Retail Equity Research VA Tech Wabag (Wabag) reported dismal Q3FY19 numbers Wabag's revenues fell 23.5% YoY to | 661.9 crore. Lower topline was due to muted execution in both domestic (down 2.3% YoY) & overseas segment (down 23.4%YoY). Overseas segment contributed ~66% whereas domestic segment contributed ~33% to the topline Absolute EBITDA declined 36.5% YoY to | 49.3 crore. EBIDTA margins came in at 7.4% vs. 9% YoY. Lower margins were mostly on...
