Prabhudas Lilladher's research report on Va Tech WabagVATW reported revenues of Rs 3.7bn (up 26% YoY), EBIDTA of Rs 391m and PAT of Rs 207m (up 17%). Domestic operations have shown significant improvement YoY for 9MFY16 with PAT of Rs 612m (Vs Rs 385m for 9MFY15) VATW trades at 19x FY17E earnings and 9.9x EV/EBITDA FY17E, which are at a premium to its average valuations, post listing in 2010. However, a 29% earnings growth over FY16‐FY18E period, continuous flow of new orders from both domestic and international businesses, excellent project execution track record, marquee client reference list, asset‐light business model, strong balance sheet and limited options available in water space makes VATW a long‐term portfolio stock. Maintain “BUY” For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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