Buy Signature Global India; target of Rs 1835 : ICICI Securities

Buy

ICICI Securities's research report on VA Tech Wabag

VA Tech Wabag (Wabag) reported another good quarter with revenue at INR 8.3bn, up 19% YoY, driven by sustained execution across domestic and overseas projects. EBITDA rose 17% YoY to INR 1.2bn with margin at 14.4% (adjusted for forex). Profit grew 20% YoY to INR 0.8bn. Order inflow remained healthy, growing 52% YoY in H1FY26 to INR 35bn, taking the orderbook to a record INR 160bn (3.2x TTM sales). Apart from this, Wabag is a preferred bidder for projects worth INR 30bn. Execution of key projects, such as Perur and Al-Haer, has remained robust.

Outlook

Given this improved execution along with healthy OB and promising order prospects, we estimate revenue and profit CAGR of 18% and 23%, respectively, over FY25-27E. We maintain BUY with TP of INR 1,835.

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