Buy Va Tech Wabag; target of Rs 672: Kotak Securities

Kotak Securities' research report on Va Tech Wabag

We note that the order placements for the Namami Gange has started to gain momentum - VA Tech Wabag (VAW) has recently announced some order wins. With the APGENCO plant achieving COD, we believe receivables from this project should get cleared out in FY19, a key positive which will alleviate investor concerns.

Outlook

At the current price of Rs 526, the stock has corrected 27% from its high of Rs 723. In view of the strong order book, sound balance sheet, long term growth potential in water and waste water treatment and reasonable valuations, we reiterate “BUY” with price target of Rs 672 (19x FY19 earnings). For all recommendations report, click here

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