Firstcall Research report on Va Tech Wabag“The company was formerly known as Balcke Durr and Wabag Technologies Limited and changed its name to VA Tech Wabag Limited in April 2000. VA Tech Wabag Limited was incorporated in 1995 and is headquartered in Chennai, India. Around the world, the WABAG name stands for innovative and successful solutions in the water engineering sector. As an internationally respected expert group, Company act as a systems specialist and full service provider with a focus on the planning, installation and operation of drinking and wastewater plants for local government and industry in the growth markets of Asia, North Africa, Middle East, the Central and Eastern Europe states. The WABAG Group represents a leading multinational player with a workforce of over 1,500 and has companies and offices in more than 20 countries. It disposes over unique technological know-how, based on innovative, patented technologies and long-term experience. Since 1995, WABAG has completed over 900 water and wastewater plants worldwide. Through the conservation and ecological use of the world's most valuable resource, WABAG has made a sustained contribution to an improvement in the quality of life of well over a hundred million people. WABAG is thus one of the world's leading partners for investments in a future that is worth living.” “At the current market price of Rs. 1403.30, the stock P/E ratio is at 27.00 x FY15E and 23.43 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 51.97 and Rs. 59.90 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 23% and 21% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 15.10 x for FY15E and 12.54 x for FY16E. Price to Book Value of the stock is expected to be at 3.82 x and 3.29 x respectively for FY15E and FY16E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 1544.00 for Medium to Long term investment,” says Firstcall Research report.
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