Va Tech Wabag Ltd. share price target

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.

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Q3FY17 revenue grew 14% YoY driven by strong growth in international projects (up 31% YoY); domestic revenue was almost flat YoY. Strong EBITDA margin at 11.4% (up 430 bps YoY) was driven by procurement & engineering efficiencies in international projects and provision reversal in the Oman project.

VA Tech Wabag (Wabag) reported strong Q3FY17 numbers excluding the payment of liquidated damages of | 64.3 crore (that the company paid for the Oman Desalination JV), due to which it reported a net loss for | 2.6 crore for the quarter. Excluding this exceptional loss, EBITDA margins and bottomline came in above our estimates while topline came in below our estimates Wabag reported revenue of | 718.3 crore, up 17.6% YoY (I-direct estimate: | 807.2 crore). Topline growth was due to on-track...

our earnings and valuation estimates downwards to account for slower sagar.gandhi@icicisecurities.com than expected improvement in EBITDA margins. We value the company at 17x FY18E earnings to arrive at a target price of | 640....

ICICI Securities Ltd | Retail Equity Research VA Tech Wabag reported revenues of | 580.3 crore, up 27.1% YoY (Idirect estimate: | 579.9 crore). Domestic operations contributed 44% to the topline. Also, 78% of the topline came from the O&M; segment while the remaining was contributed by the EPC segment Absolute EBITDA increased 127.7% YoY to | 27.5 crore (our estimate of | 24.4 crore). EBIDTA margins came in at 4.7% vs. 2.6% YoY due to improved execution during the quarter. This was despite a 6% YoY increase in employee expenses. Our estimates for EBITDA...

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...