Moneycontrol
Feb 16, 2017 04:43 PM IST | Source: Moneycontrol.com

Buy VA Tech Wabag; target of Rs 630: ICICI Direct

ICICI Direct is bullish on VA Tech Wabag has recommended buy rating on the stock with a target price of Rs 630 in its research report dated February 14, 2017.

Buy VA Tech Wabag; target of Rs 630: ICICI Direct


ICICI Direct's research report on VA Tech Wabag


VA Tech Wabag (Wabag) reported strong Q3FY17 numbers excluding the payment of liquidated damages of Rs 64.3 crore (that the company paid for the Oman Desalination JV), due to which it reported a net loss for Rs 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.


Outlook


We expect double digit margins 10.2% in FY19E. Accordingly, we value the company at 15x FY19E (17x FY18E earlier) EPS of Rs 42 to arrive at a target price of Rs 630.

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