Target: ₹1,755
CMP: ₹1,440.85
VA Tech Wabag is a leading pure-play water technology multinational headquartered in Chennai, India, with over 10 decades of experience in sustainable water and wastewater management. It provides comprehensive solutions across the entire water cycle, spanning desalination, wastewater treatment, water recycling and reuse, ZLD, and waste-to-energy solutions.
Wabag maintains a well-diversified portfolio with a balanced mix of municipal and industrial projects, supporting sustainable infrastructure development globally. With a strong presence in more than 25 countries across the globe, over 125 proprietary technologies and deep-rooted R&D, it combines advanced in-house technologies with engineering expertise to deliver customised, cost-effective solutions tailored to regional needs.
Its operations span design-build projects and long-term operation and maintenance contracts, delivering consistent value to clients and communities. At end-Dec’25, Wabag had a robust order backlog of ₹15,100 crore (4.1x TTM revenue). Wabag sees an opportunity of ₹40,000 crore in the Indian and global markets of presence over the next 12-18 months.
We estimate PAT to grow at 17 per cent CAGR over FY25–28E. The stock currently trades at 20x/18x FY27/28E EPS. We value the stock at 23x FY28E EPS to arrive at a target price of ₹1,755. We initiate coverage at BUY.