Va Tech at current market Cap of about 2900 crs presents an interesting opportunity. Run by a passionate technocrat promoter, it is in the field of water mgt. Water is a scarce resource, & will be more so in the future. The Co. is in the exciting space of water recycling, creating wealth from waste. It is only a matter of time before it becomes mandatory for all manufacturers to become zero discharge, more so when the technology is available at a reasonable cost. In addition to re-cycling water, Va Tech has been in the field of desalination for the last several years, providing drinking water to the city of Chennai. With the vast coastline that we have, the scope for growth in the business is clearly huge.
The business has been explained in some detail by @ganeshrpl above. There is also sufficient data/ articles etc. available on this thread itself for those interested in building conviction.
The current valuations are indeed attractive. Adjusted for the one time hit taken in Q4 of 22-23 for long pending dues, the Company is available at a trailing multiple of 10! The huge amounts written off will in all probability be recovered sometime in the future, but that is not central to the basic investment thesis here, but rather the huge growth opportunities available in the water infrastructure space, together with a meaningful increase in valuations/ multiple of the Co. make it a compelling story!
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