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.
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