With asset light model, robust order pipeline, strong balance sheet, leadership position in Indian market and increasing geographical presence with strong brand image; Va Tech Wabag Ltd. revenue visibility looks strong. We believe the company is trading at an attractive valuation at 16.86x and 14.24x of FY14EPS of Rs.41.01 and FY15EPS of Rs.48.53. We initiate a ‘BUY’ on the stock with a target price of Rs.870 (appreciation of about 26%) with the medium to long term investment horizon
READ MORE »Posts tagged Va Tech Wabag Ltd
Va-Tech Wabag Ltd Stock Research Note By GEPL
At the CMP of Rs 605, Va Tech Wabag Ltd is trading at 9.49x its FY16E EPS of Rs 63.73. The company’s diversified global presence; high revenue visibility and superior in-house technology provide low downside risk to the stock at CMP. Having 100 patents in water space and technological expertise coupled with strong cash balance make WABAG a strong contender to bid for big ticket Government projects. We attach an exit multiple of 11x FY16E EPS to arrive at the target price of Rs 701. We recommend a BUY rating on WABAG with target price of Rs 701, implying potential upside of 16%
READ MORE »