VA Tech Wabag Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹10,238 crore, a debt-to-equity ratio of 0.22, and a return on equity (ROE) of 13.8%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
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Overview of the Waste Management Sector
The waste management sector plays a crucial role in managing and disposing of solid and hazardous waste, contributing to environmental sustainability. With increasing urbanization, stricter regulations, and rising consumer awareness, this sector is expanding, focusing on recycling, composting, and waste-to-energy solutions.
Technological advancements in waste processing, such as smart waste management systems, have increased efficiency. Companies are adopting innovative approaches to reduce landfills and greenhouse gas emissions, aligning with sustainability goals. As global waste generation grows, the sector presents significant growth opportunities for companies specializing in recycling, resource recovery, and waste-to-energy solutions.
Financial Analysis of VA Tech Wabag Ltd
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 2,856 | 2,960 | 2,979 | 2,834 |
| Expenses | 2,481 | 2,643 | 2,742 | 2,616 |
| Operating Profit | 375.7 | 317.82 | 236.99 | 218.76 |
| OPM % | 12.96 | 10.54 | 7.87 | 7.7 |
| Other Income | 43.4 | -235.63 | 32.39 | 8.21 |
| EBITDA | 419.1 | 371.42 | 269.38 | 226.97 |
| Interest | 71.1 | 65.8 | 87.7 | 90.3 |
| Depreciation | 8.4 | 8.81 | 10.13 | 12.13 |
| Profit Before Tax | 339.6 | 7.58 | 171.55 | 124.54 |
| Tax % | 23.47 | 77.84 | 21.18 | 23.66 |
| Net Profit | 250.4 | 10.93 | 132.06 | 100.82 |
| EPS | 39.49 | 2.07 | 21.21 | 17.71 |
| Dividend Payout % | 0 | 0 | 0 | 0 |
* Consolidated Figures in Rs. Crores
VA Tech Wabag India Limited Company Metrics
VA Tech Wabag Ltd demonstrated resilient financial performance in FY24, with sales of ₹2,856 crore, compared to ₹2,960 crore in FY23 and ₹2,979 crore in FY22. Operating profit increased to ₹375.7 crore in FY24, highlighting improved operational efficiency and profitability.
Sales Growth: Sales in FY24 slightly declined by 3.51% to ₹2,856 crore from ₹2,960 crore in FY23. FY23 sales were also marginally lower than FY22’s ₹2,979 crore, reflecting consistent revenue in a competitive industry.
Expense Trends: Expenses reduced to ₹2,481 crore in FY24, a 6.13% decrease from ₹2,643 crore in FY23. FY23 expenses had also decreased by 3.61% from ₹2,742 crore in FY22, indicating effective cost control and resource optimization.
Operating Profit & Margins: Operating profit grew to ₹375.7 crore in FY24, an 18.2% increase from ₹317.82 crore in FY23. OPM improved to 12.96% in FY24 from 10.54% in FY23 and 7.87% in FY22, showcasing enhanced operational efficiency.
Profitability Indicators: Net profit surged to ₹250.4 crore in FY24 from ₹10.93 crore in FY23, marking a significant recovery. FY22 net profit was ₹132.06 crore. EPS rose to ₹39.49 in FY24 from ₹2.07 in FY23, reflecting strong earnings growth.
Taxation & Dividend: The tax rate decreased to 23.47% in FY24 from a high of 77.84% in FY23, aligning with normalized earnings. Dividend payout remained nil across FY24, FY23, and FY22, signaling a reinvestment-focused approach.
Key Financial Metrics: EBITDA increased to ₹419.1 crore in FY24 from ₹371.42 crore in FY23 and ₹269.38 crore in FY22. Interest expenses rose to ₹71.1 crore in FY24, while depreciation remained steady at ₹8.4 crore, reflecting balanced financial management.
VA Tech Wabag Stock Performance
VA Tech Wabag has shown impressive stock performance, with a 162% return in the last year, 75.2% over the past three years, and 55.2% over five years. These strong returns highlight the company’s consistent growth and investor confidence.
| Duration | Return |
| 1 year | 162 % |
| 3 years | 75.2 % |
| 5 years | 55.2 % |
VA Tech Wabag Shareholding Pattern
The shareholding pattern of VA Tech Wabag indicates a diverse ownership structure. Promoters hold a stable 19.12%, while FIIs and DIIs have fluctuating stakes. Public shareholding remains significant at over 60%, with an increasing number of shareholders, reflecting growing market interest.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 21.70% | 19.12% | 19.12% | 19.12% |
| FIIs | 16.17% | 16.57% | 12.45% | 14.68% |
| DIIs | 3.62% | 3.25% | 5.63% | 3.59% |
| Public | 58.51% | 61.07% | 62.78% | 62.59% |
| No. of Shareholders | 1,08,954 | 99,449 | 1,08,230 | 1,45,563 |
VA Tech Wabag Partnerships and Acquisitions
VA Tech Wabag has strategically expanded through various partnerships and acquisitions. In Oman, it formed a joint venture with the Zawawi Group, with a 30% stake held by the Omani partner, focusing on the O&M business. This move strengthens its presence in the region.
The company also entered into a strategic alliance with Al Jomaih Energy and Water, aiming to pursue large-scale public-private partnership (PPP) projects as an EPC partner. Additionally, VA Tech Wabag secured a $317 million order from the Saudi Water Authority for a mega desalination plant in Yanbu, Saudi Arabia.
In Tunisia, VA Tech Wabag won a major consortium order for a water treatment project worth 215 million Tunisian Dinars, expanding its footprint in North Africa. On the divestment side, the company sold its Romanian subsidiary, Wabag Romania, to Circular Waters Solutions S.R.L. VA Tech Wabag’s global presence and diverse acquisitions cement its position as a leader in the water treatment sector.
VA Tech Wabag Peer comparison
VA Tech Wabag, with a market cap of ₹10,237.79 Crores, shows strong performance in comparison to peers. It boasts a 162.22% 1-year return and maintains a competitive P/E ratio of 39.36 and a healthy ROCE of 19.75%, though it offers no dividend yield.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Larsen & Toubro | 3608.1 | 496160.88 | 36.85 | 14.68 | 13.44 | -0.51 | 2.33 | 0.78 |
| Techno Elec.Engg | 1559.75 | 18139.83 | 57.24 | 13.12 | 16.53 | 0.44 | 95.01 | 0.45 |
| Reliance Infra. | 298.95 | 11842.34 | -11.6 | 7.38 | 59.4 | 42.49 | 0 | |
| ISGEC Heavy | 1494.45 | 10988.62 | 37.73 | 9.98 | 12.31 | 19.78 | 52.28 | 0.27 |
| Engineers India | 188.46 | 10592.25 | 28.62 | 20.8 | 22.21 | -26.88 | 9.92 | 1.59 |
| Sterling & Wils. | 453.05 | 10578.46 | -56.67 | 3.77 | -34.28 | 4.79 | 0 | |
| Va Tech Wabag | 1646.2 | 10237.79 | 39.36 | 13.82 | 19.75 | 23.92 | 162.22 | 0 |
Future of VA Tech Wabag
VA Tech Wabag is positioning itself for growth by focusing on expanding its operations in water and wastewater treatment solutions globally. The company aims to leverage its technological expertise to meet the rising demand for sustainable water management solutions in emerging markets.
As urbanization accelerates, VA Tech Wabag’s innovative water treatment technologies will be vital to addressing water scarcity and pollution issues worldwide. The company is investing in advanced solutions like desalination plants and waste-to-energy systems, ensuring long-term growth potential within the green technology space.
The company’s strong order book, combined with strategic global partnerships, will likely propel VA Tech Wabag’s market share. By capitalizing on its international presence, the company plans to further strengthen its competitive edge in the global water treatment and waste management sectors.
How to Invest In VA Tech Wabag Share?
To invest in VA Tech Wabag shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze VA Tech Wabag’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for VA Tech Wabag on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
VA Tech Wabag – FAQs
VA Tech Wabag has a market capitalization of ₹10,238 crore, reflecting its significant position in the global water treatment and waste management industry, highlighting its sustained growth in the sector.
VA Tech Wabag is a prominent player in the water treatment and waste management sector, focusing on integrated solutions for water, wastewater, and effluent treatment, but other competitors like Thermax and L&T also contribute strongly to the industry’s leadership.
VA Tech Wabag’s key acquisitions include the Wabag Group in 1999, expanding its water business, and the acquisition of VA Tech Wabag Global Business from Siemens in 2007. In 2023, it sold Wabag Czech to VCL Group for €1 million, further restructuring its global operations.
VA Tech Wabag is a global leader in water treatment solutions, offering design, engineering, and construction of plants for water, wastewater, and effluent treatment. The company serves sectors including municipal, industrial, and infrastructure, focusing on sustainable solutions.
VA Tech Wabag is primarily owned by a combination of public shareholders, with the majority stake held by institutional investors. The company’s leadership includes a board of directors, with significant influence from promoters and financial institutions. Rajiv Mittal is the Chairman and Managing Director (CMD) of VA Tech Wabag Limited.
The main shareholders of VA Tech Wabag include financial institutions and public investors. The promoters hold a 19.12% stake, while institutional investors such as FIIs (14.68%) and DIIs (3.59%) have substantial holdings, reflecting the company’s strong market presence.
VA Tech Wabag operates in the environmental industry, focusing on water treatment, wastewater management, and waste-to-energy solutions. It provides engineering services, technology solutions, and turnkey projects for industrial and municipal clients globally.
VA Tech Wabag has seen substantial growth in its order book, securing multiple projects in India and abroad. Its focus on long-term infrastructure projects, along with its expertise in water and wastewater treatment, has contributed to an expanding order book.
To invest in VA Tech Wabag shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
With a P/E ratio of 39.4, VA Tech Wabag is relatively valued in line with the industry. However, its future growth prospects in sustainable water management and international expansions suggest that the stock could be undervalued in the long term.
VA Tech Wabag’s future looks promising with increasing global demand for water treatment and waste management solutions. The company’s expansion into emerging markets, technological innovations, and sustainable solutions are key factors driving its future growth trajectory.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
