Wabag share price is in bullish momentum and given a breakout with strong volume. Invest in it now for a target of 486 for the short to medium term. Wabag share price NSE is showing bullish chart patterns. Va tech wabag is one of the best companies to invest in right now. Technical analysis of the stock is reflecting bullish price momentum with strong volume. Fundamentally, it is a good company to invest in for the medium to long-term.
The stock has given a break out from with a cup and handles pattern in the daily chart. Wabag share price is also given a golden crossover on the daily chart at the 300 level which is eventually its previous swing high. The share price of wabag is trading above the previous swing high and ready to move up for a 25% move.
Va tech WABAG share price (WABAG) looks strong in its technical chart with strong trading volume over the last few trading sessions. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. Va tech wabag share price nse is crossed above its previous swing high at 300 level. Eventually, Va tech wabag share price has given a golden crossover at the same level.
Once Wabag share price crossed the previous swing high at the 300 level with strong volume, it will reach its all-time high. Again, Va tech wabag share price is trading above all its short and long-term moving averages on the daily chart. Buy at this level or on Dip for long-term gain.
On the weekly chart, Va tech wabag share price looks strong in the weekly chart with strong volume over the last weeks. Wabag share price looks strong for both short- and long-term investments at this level. The stock is just above its weekly previous swing high of 317 level. Once it closes above it, for the short to medium term, Wabag share price target in 2023 can be above 500.
Momentum indicators RSI, ADX, and MACD of Va tech WABAG share price are looking bullish on the daily chart. One may buy on dips for a 10 to 20% gain in the short term. WABAG share price is trading at 12.1 Price to Earnings (PE). The stock has 13.3% ROCE and 8.56% ROE. Zero-debt company with a debt-to-equity ratio is 0.28 in FY22. The fundamentals of the company with a low debt-to-equity ratio make it attractive.
Va tech wabag Business Description
The company is a leading Water Treatment Solution Provider globally. Headquartered in Chennai, India, the company was founded in Breslau, Germany in 1924. Deutsche Babcock became the majority shareholder of Wabag in 1973. Eventually, Deutsche Babcock took over the entire company.
The company is one of the fastest-growing multinational companies present in over 30 countries across the globe.
- Wabag offers water solutions to municipalities and industries. The services include Water Treatment, Desalination, Wastewater Treatment, Water Reclamation, Sludge Treatment, etc.
- The company caters to all industries such as Oil and Gas, Power Plants, Steel Industry, Fertilizer Industry, Food & Beverage, Water Reclamation, Industrial Parks, and Others.
- The company has over 98 years of experience in the industry with a highly experienced team with an average of 30 years of experience in the water sector.
- Ranked 4th Globally by Global Water Intelligence (‘GWI’), United Kingdom for ensuring water & sanitation for over 71 Mn people.
- The company mainly focuses on Government funded projects. One of its major projects in India is Namami Gange Project to clean the water of the river Ganga.
- Strong order book – Order Book of over Rs. 103 Bn including Framework Orders while order Intake of ~Rs. 15 Bn by Q2FY23.
- As per the latest presentation, Va Tech Wabag reported strong YoY revenue growth from INR 684 crore in Q2FY2022 to INR 750 crore in Q2FY2023.
- EBIDTA margin of the company has increased from 8.3% to 9.8% during the same period.
- Operating margins continued to improve driven by the increase in international EP projects and execution pace.
- Profit after tax has doubled from INR 26.2 crore in Q2FY2022 to INR 46.7 crore in Q2FY2023. This is due to a reduction in borrowing costs through actions on debt control.
- However, Net cash generated from operations is negative during the above period.
- QoQ EPS of the company has also gone up from 4.4 in June 2022 to 6.37 in September 2022. YOY EPS was also higher in FY2022 reaching 21.21 from 18.83 in FY2021.
- However, Promoter shareholdings declined from 21.7% in June 2022 to 19.13% in September 2022.
- DIIs have also decreased their stakes from 3.28% to 3.25% during the same time.
- However, FIIs decreased their stake from 15.35% to 14.42% during the same time.
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