Sharekhan's research report on Va Tech Wabag
Q3FY2023 was low on execution; however, margin expansion was a positive surprise, driven by favourable mix of projects and a decline in input cost. Order intake was robust at Rs. 1,886 crore in 9MFY2023. Order book stood at Rs. 8,878 crore and the company has near-term order visibility of Rs. 5,000-5,000 crore from the domestic market. Va Tech is focusing on quality, technologically advanced, and well-funded industrial as well as EP orders to improve profitability and cash flows on a sustainable basis.
Outlook
We maintain 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.
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