Now Reading: VA Tech Wabag jumps 5% as brokerages hike targets after Q1 beat
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VA Tech Wabag jumps 5% as brokerages hike targets after Q1 beat
VA Tech Wabag jumps 5% as brokerages hike targets after Q1 beat
Shares of VA Tech Wabag jumped over 5% on 14 August despite a weak Sensex, after Axis Securities raised its target price to Rs 2,105 from Rs 1,930, maintaining a 'buy' call.…
The Story in Brief
Shares of VA Tech Wabag jumped over 5% on 14 August despite a weak Sensex, after Axis Securities raised its target price to Rs 2,105 from Rs 1,930, maintaining a 'buy' call. The move followed strong Q1FY27 results: revenue rose 21% YoY to Rs 886.8 crore, PAT jumped 37% to Rs 90.1 crore, and EBITDA grew 22% to Rs 116.3 crore. The company’s order book hit an all-time high of Rs 19,400 crore, over four times annual revenue.
ICICI Securities also hiked targets on VA Tech Wabag, among other stocks, citing a potential upside of 28% from current levels, Livemint and NDTV Profit report. Investor Rekha Jhunjhunwala holds an 8.02% stake. Axis Securities said strong order visibility and an asset-light model support 15-20% revenue CAGR and margin targets of 13-15%.
The Indian Opinion
The 'Rekha Jhunjhunwala portfolio stock' tag and 'multibagger' label (278% in three years) create a narrative of easy gains, but the stock is already near its 52-week high and down 1% on 13 August. Brokerage optimism is priced in: the Rs 19,400 crore order book is impressive but depends on flawless execution and margin discipline. The real test is whether VA Tech Wabag can deliver the guided 13-15% EBITDA margins while scaling, operating cash flow and RoCE above 20% will settle the matter.
Sources (2): ndtvprofit.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
