Rekha Jhunjhunwala-backed Multibagger Water Treatment Company Secures Mega Desalination Project Worth USD 317 Million in Saudi Arabia!
The company’s shares have delivered an impressive multibagger return of over 165 per cent in just 1 year.
Va Tech Wabag Ltd, a leading player in the water treatment industry, has reinforced its position in the Middle East with a substantial new order. The company has been awarded a contract worth approximately USD 317 million (~SAR 1,190 million / ~INR 2,700 crores) by the Saudi Water Authority (SWA) for the Engineering, Procurement, Construction, and Commissioning (EPCC) of a 300 million litres per day (MLD) Sea Water Reverse Osmosis (SWRO) Desalination Plant in Yanbu, Saudi Arabia. The project is expected to be completed within 30 months and will adhere to stringent environmental regulations.
The SWA, previously known as the Saline Water Conversion Corporation (SWCC), oversees water sector operations in Saudi Arabia, aligning with the Vision 2030 goals. The authority manages over 40 desalination plants and 139 water purification stations, producing significant daily volumes of water. With over four decades of presence in Saudi Arabia and a global portfolio of over 60 desalination plants across 17 countries since 1995, Wabag continues to make significant contributions to water security and sustainability.
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On Friday, the shares of Va Tech Wabag Ltd closed at around Rs 1312.90 per share on the BSE. The company’s current market capitalization stands at Rs 8165 crore. Additionally, the shares have delivered an impressive return of over 166 per cent in the past 1 year.
As per the Quarterly Results, in the Q1 FY25, Va Tech Wabag Ltd a Small-Cap water treatment recorded a revenue of Rs 626 crore compared to Rs 553 crore. The operating profit stood at Rs 79 crore with a margin of 13 per cent which was earlier 10 per cent same quarter last year. The net profit stood at Rs 55 crore compared to a profit of Rs 50 crore.
Rekha Jhunjhunwala owns 8.04 per cent stake in the company as per Q1 FY25.
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Disclaimer: The article is for informational purposes only and not investment advice.