Buy Va Tech Wabag, target price Rs 420: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Va Tech Wabag with a target price of Rs 420.The current market price of Va Tech Wabag is Rs 332.2.

Va Tech Wabag, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 2074.67 Crore) operating in Engineering sector.

Va Tech Wabag key Products/Revenue Segments include Contract Service and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 653.60 Crore, down -15.47 % from last quarter Total Income of Rs 773.24 Crore and down -12.96 % from last year same quarter Total Income of Rs 750.94 Crore. Company has reported net profit after tax of Rs 45.15 Crore in latest quarter.

The company’s top management includes Mr.Malay Mukherjee, Mr.Rajiv Mittal, Mr.S Varadarajan, Mr.Milin Mehta, Mrs.Vijaya Sampath, Mr.Ranjit Singh, Mr.Amit Goela. Company has Sharp & Tannan as its auditors. As on 31-12-2022, the company has a total of 6 Crore shares outstanding.

Investment Rationale
The brokerage maintains Buy on Va Tech Wabag (Va Tech) with an unchanged PT of Rs. 420, considering a robust order pipeline with improving margin profile and attractive valuation.

Promoter/FII Holdings
Promoters held 19.13 per cent stake in the company as of 31-Dec-2022, while FIIs owned 15.94 per cent, DIIs 3.45 per cent.