Rs 14,263.4 crore order book: Jhunjhunwala’s portfolio company bags order worth Rs 3,251 crore from Al Haer Environmental Services Company
The stock gave multibagger returns of 105 per cent in just 1 year whereas BSE Small-Cap Index is up by 11 per cent.
VA Tech Wabag Limited (WABAG), a prominent Indian multinational group specializing in water technology, has secured a major consortium order worth USD 371 million (approximately Rs 3,251 crore) in the Middle East. The order, from Al Haer Environmental Services Company, is for the Engineering, Procurement, and Construction (EPC) of a 200 MLD Independent Sewage Treatment Plant (ISTP) and associated outfall facilities. This ISTP project is being developed by a consortium of Miahona Company, Marafiq, and N.V. Besix S.A., with the Saudi Water Partnership Company (SWPC) as the off-taker. SWPC is the primary entity responsible for water and wastewater projects in Saudi Arabia.
This significant win follows WABAG's earlier success in securing an Engineering and Procurement (EP) order for a 20 MLD Industrial Wastewater Treatment Plant (IWWTP) at the Ras Tanura Refinery Complex, also in Saudi Arabia, with Miahona Company as the project developer. WABAG's long-standing, positive relationship with Miahona Company, its strong regional reputation built over four decades, and its technically advanced proposal were instrumental in securing this repeat business. For the current ISTP project, WABAG has partnered with Mutlaq Al-Ghowairi Contracting Company (MGC) in an EPC consortium. WABAG will lead the consortium as the technology partner, designing and constructing the treatment plant, while MGC will focus on pipeline laying and reservoir construction. The ISTP aligns with Saudi Arabia's "Vision 2030" initiative, which aims to enhance sewage treatment services and improve the overall quality of life.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
About the Company
VA Tech Wabag Limited is a leading global water technology company with over a century of experience, providing innovative and sustainable solutions for municipal and industrial clients worldwide. As a Pure-Play Indian multinational, WABAG offers end-to-end water solutions, from design and engineering to long-term operations. With a global presence, a strong focus on R&D, and a commitment to sustainability, WABAG is shaping a future where water challenges are transformed into opportunities for a better world.
A renowned investor, Rekha Jhunjhunwala (wife of Late Rakesh Jhunjhunwala), held an 8.04 per cent stake in the company. The company has a market cap of over Rs 8,700 crore while the company has an order book of Rs 14,263.4 crore. The shares of the company have a PE of 33x while the industry PE is 31x. The stock gave multibagger returns of 105 per cent in just 1 year whereas BSE Small-Cap Index is up by 11 per cent. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.