Buy Va Tech Wabag; target of Rs 750: Axis Direct

Zydus Wellness | Brokerage: Sharekhan | Rating: Buy | Target: Rs 1,472 | Return: 18 percent

Axis Direct's research report onVa Tech Wabag

VA Tech's (VATW) Q4FY17 reported PAT of Rs 757 mn was up 11% YoY and beat our/Street expectations. This was driven by better than expected execution during the quarter. Consolidated revenue grew 32% YoY to Rs 11.3 bn, driven by strong growth in international projects (up 41% YoY) as well as domestic revenue (up 27% YoY).

Outlook

We maintain our FY18E EPS at Rs 36. We roll forward our valuation to FY19 and our revised TP is Rs 750 (20x FY19E) vs. Rs 664 earlier.

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