Va Tech Wabag shares jump 9% after Nomura retains buy, hikes target price

Va Tech Wabag

Va Tech Wabag share price jumped 9 percent in the morning session on February 16 after Nomura retained buy on the stock and has raised target to Rs 634 per share.

The Japanese research firm has maintained buy rating on the stock and has raised target to Rs 634 per share, an upside of over 96 percent from current level.

The stock was trading at Rs 322.05, up Rs 26.50, or 8.97 percent at 09:46 hours on BSE. It has touched an intraday high of Rs 340 and an intraday low of Rs 310.

The scrip was trading with volumes of 69,589 shares, compared to its five day average of 24,587 shares, an increase of 183.03 percent.

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Nomura is of the view that VA Tech Wabag posted robust results with EBITDA margin improving. Strong debt reduction, greater than 10% margin and focus on securing tech-focussed were the key positives. Focus will be on securing tech-focussed orders with low civil component, it said.

The water treatment company in an exchange filing last month announced getting a $100-million order in the United Arab Emirates, its first such work in the Gulf nation pushing the stock price higher.

"WABAG has secured an order worth about $100 million towards engineering and procurement activities in relation to 120 million gallons per day (MiGD) Hassyan Sea Water Reverse Osmosis (SWRO) in the United Arab Emirates (UAE)," the pure-play water technology group said in a BSE filing.

The order was secured from Green EPC (a Utico FZC subsidiary), which is the prime engineering, procurement and construction (EPC) contractor for the project, the company added.

The Dubai Electricity and Water Authority (DEWA) selected Utico FZC as the preferred bidder to build the SWRO plant and operate it for 35 years, under the independent water producer (IWP) model, wherein DEWA would off-take 100 percent of water. The desalination plant is to be commissioned in phases by March 2024 and would be the largest IWP in Dubai.