Outperform Va Tech Wabag, with a target of Rs 750: Credit Suisse

Credit Suisse has Outperform call on Va Tech Wabag Ltd. with a target price of Rs 750 . The current market price of Va Tech Wabag Ltd. is 481.2 . Time period given by analyst is year when Va Tech Wabag Ltd. price can reach defined target.
VA Tech's end-FY16 order book rose 34% YoY. Most of the company's markets are stable to looking up. It holds strong position in a sector where opportunities are significant.
The scope for margin expansion from improving profile and order sizes. End of 2 low-margin projects in FY18, end of Oman settlement can help margins from FY18 Final settlement of Oman project higher than provisional made; could impact FY17 margins by 100 bp.
Stock trades at a 12M forward P/E of 16x vs three-year average of close to 21x