Intraday Spotlight: VA Tech Wabaug surges 8 per cent today

The company’s order book stands at Rs 2800 crore and around Rs 2000 crore comes from the new-age and higher-margin business.

Shares of VA Tech Wabag surged as much as 8 per cent on the bourses intraday today and were among the top gainers on the BSE 500 on positive market sentiment surrounding the stock. 

In a recent interview, Rajneesh Chopra, group business head at VA Tech, explained that the company has consciously worked on getting the cost of ownership down which has worked in the company’s favour and its interest cost are much lower than last year. It is also focusing on securing orders with higher technology, engineering and design components as against construction, which is aiding margin. 

The company’s order book stands at Rs 2800 crore and around Rs 2000 crore comes from the new-age and higher-margin business, including three major orders from Russia, Malaysia and the UAE. For the year ahead, Chopra said that order prospects “look healthy” with increased government capital allocation for water treatment announced in the budget. 

Chennai headquartered, VA Tech Wabag engages in the design, supply, installation, and operational management of drinking water and wastewater treatment plants. It offers design, engineering, procurement, construction, erection, commissioning, operation, and maintenance solutions for drinking water, industrial wastewater, municipal wastewater, industrial and process water, seawater and brackish water desalination, and industrial and municipal wastewater treatment.

At 2.30 pm on Wednesday, the stock of VA Tech Wabag was trading at Rs 320.20, up by 8.34 per cent or Rs 24.65 per share on BSE. The 52-week high of the scrip is recorded at Rs 404.25 and the 52-week low at Rs 228.80 on the BSE.