Va Tech Wabag Ltd. share price target

Consol. sales grew 20% YoY to INR8.7b, below our estimate of INR9.3b. Revenue growth was supported by a pick-up in execution of key orders like Petron as (Malaysia), Polghawela (Sri Lanka), Koyambedu (Chennai), AP Genco and AMAS (Bahrain). Standalone sales rose 21% YoY toINR4.6b, while subsidiary sales grew 20% YoY to INR4b. Consol. EBITDA fell 2%YoY to INR0.8b, with the margin of 9% (-210bp YoY) below our estimate of10.1%. Consol. recurring profit of INR300m too was below our estimate ofINR476m.

Opportunities galore for global water and wastewater treatment players for the United Nations predicts that global water demand would grow by 55% during 2011-2050 - largely fueled by population growth - which would make the world face a 40% water deficit. By some study on Climate change, global fresh water availability would decline by nearly 7% for every degree increase in climatic temperature. Water security of most developing regions, measured by National Water Security Index Score of ADB, mainly in Central & West Asia, South Asia and South East Asia stands abysmally below 50...

Background: VA Tech Wabag is a leading company 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 157 patents which include both products and process patents and Wabag...

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Results in-line at operating level: Consol. sales grew 14% YoY to INR8.9b, below our estimate of INR9.7b. Revenue growth was supported by a pick-up in execution of key orders like Petronas, Polgawela and AMAS (Bahrain). Standalone sales rose 12% YoY to INR5.1b, while subsidiary sales grew 17% YoY to INR3.8b. Consol. EBITDA grew 41% YoY to INR0.8b, with the margin of 9.3% (+181bp YoY) above our estimate of 8.4%. Consol. recurring profit of INR388m was in line with our estimate of INR396m. Order backlog of INR71b provides robust revenue visibility: In 2QFY18, consol....

VA Tech Wabag's (VAW) reported good set of numbers in the second quarter on an operational basis. Profit and EBITDA Numbers were ahead of our expectations. The stock has underperformed in recent quarters due to increasing working capital intensity which has raised net borrowings. We have been positive on the stock in view strong order book of the company coupled with relative under-performance in stock price in H1FY18. Valuations are...

VA Techs (VATW) Q1FY18 order inflow at ~Rs 7 bn was down ~13% YoY (vs. Rs 8 bn YoY). Order backlog at Rs 74 bn was down 1% YoY (India up 23%, International subsidiaries down 35%).

ICICI Securities Ltd | Retail Equity Research VA Tech Wabag (Wabag) reported mixed Q1FY18 numbers. The topline and bottomline came in below our estimates. However, EBITDA came in above our estimates Wabag reported revenues of | 668.6 crore, up 15.2% YoY (I-direct estimate: | 694 crore). Lower growth in topline was on account of muted execution in the domestic segment Absolute EBITDA increased 52.2% YoY to | 41.8 crore. EBIDTA...

Background: VA Tech Wabag is a leading company 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 157 patents which include both products and process patents and Wabag...

VA Tech's (VATW) Q4FY17 reported PAT of Rs 757 mn was up 11% YoY and beat our/Street expectations. This was driven by better than expected execution during the quarter.