Buy Va Tech Wabag; target of Rs 722: KR Choksey

KR Choksey's research report on Va Tech Wabag

Incorporated in 1995, VA tech Wabag (VATW) is one of the leading players in water treatment space with presence in over 15 countries. The company along with its 17 subsidiaries provides EPC and O&M solutions to Municipal and Industrial clients. It offers solutions for drinking water treatment, industrial water treatment, sea & brackish water desalination, municipal waste-water treatment, sludge treatment and so on. VATW commands nearly 14% market share in India as well as a strong foothold in Europe, Middle East, Africa and South-East Asia. VATW has recently forayed into LATAM market and foresees huge market potential for its services in this region.

Outlook

This, in turn, could improve valuations of the company and hence, valuing the company at 15x on FY20E earnings of INR 48.1, we have arrived a target price of INR 722, potential upside of 31% from CMP of INR 550. We have ‘BUY’ rating on the stock. For all recommendations report, click here

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