This Jhunjhunwala stock seen rising 76% post strong Q2 earnings
Ace investor Rakesh Jhunjhunwala held 50 lakh shares or 8.04% stake in the firm on behalf of his wife Rekha Rakesh Jhunjhunwala at the end of September quarter this fiscal.
- Nov 16, 2021,
- Updated Nov 16, 2021 5:46 PM IST
Va Tech Wabag stock rose over 10% today after global brokerage Nomura raised its target price and maintained a 'buy' rating on the stock.
Ace investor Rakesh Jhunjhunwala held 50 lakh shares or 8.04% stake in the water treatment firm on behalf of his wife Rekha Rakesh Jhunjhunwala at the end of September quarter this fiscal.
He bought stake in the firm for the first time in August 2020. The stake purchase was a part of fund raising exercise of the water treatment firm.
Also read: Jhunjhunwala couple earned Rs 18.4 crore per day with this stock for 11 sessions
The stock touched an intraday high of Rs 367, rising 10.38% against the previous close of Rs 331.50 on the BSE. The stock opened with a gain of 3.49% at Rs 292 today. Later, the small cap stock ended 7.03% higher at Rs 354.80 on BSE.
The share has gained after four days of consecutive fall. It opened with a gain of 4.08% at Rs 346 today.
VA Tech Wabag share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 91% in one year and risen 72% since the beginning of this year.
In a month, the stock has gained 2.92%. Market capitalisation of the firm rose to Rs 2,206 crore.
Total 2.29 lakh shares changed hands today amounting to turnover of Rs 8.19 crore on BSE.
Nomura has raised its price target on VA Tech Wabag to Rs 581, implying a 76% upside to the current market price after the firm reported a strong set of earnings for September quarter.
The brokerage said order inflows were robust for first half of FY22. Execution was on track to achieve Rs 3,100-3,300 crore in sales for FY22. Start of execution for international projects in Russia and Malaysia from second half add visibility on a rise in execution besides the usual seasonal uptick.
"Industrial water capex is increasingly focused on self-sufficiency and to meet increased regulatory scrutiny. This should support 15% per annum growth in prospects for higher-margin industrial water capex for next five-seven years, according to management, which provides long-term order inflow visibility," Nomura said.
The firm reported a 86.14% rise in consolidated profit for the quarter ending September 30, 2021. Net profit climbed to Rs 25.93 crore in Q2 against Rs 13.93 crore profit during the corresponding quarter last year.
Net sales rose to Rs 68.39 crore in the September quarter against Rs 60.83 crore sales in the corresponding quarter of previous fiscal.
For the half year ended September 30, 2021 consolidated profit stood at Rs 40.50 crore, rallying 113.49% against Rs 18.97 crore profit in the year ago period.
Also read: Rs 22 to Rs 118: This stock held by Rakesh Jhunjhunwala turned into a multibagger in one year
For the six-month period ending September 30, 2021 consolidated total income climbed 30.47% to Rs 1,359.25 crore against Rs 1,042.26 crore logged in the corresponding period of last financial year.
The company is engaged in water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.
Va Tech Wabag stock rose over 10% today after global brokerage Nomura raised its target price and maintained a 'buy' rating on the stock.
Ace investor Rakesh Jhunjhunwala held 50 lakh shares or 8.04% stake in the water treatment firm on behalf of his wife Rekha Rakesh Jhunjhunwala at the end of September quarter this fiscal.
He bought stake in the firm for the first time in August 2020. The stake purchase was a part of fund raising exercise of the water treatment firm.
Also read: Jhunjhunwala couple earned Rs 18.4 crore per day with this stock for 11 sessions
The stock touched an intraday high of Rs 367, rising 10.38% against the previous close of Rs 331.50 on the BSE. The stock opened with a gain of 3.49% at Rs 292 today. Later, the small cap stock ended 7.03% higher at Rs 354.80 on BSE.
The share has gained after four days of consecutive fall. It opened with a gain of 4.08% at Rs 346 today.
VA Tech Wabag share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 91% in one year and risen 72% since the beginning of this year.
In a month, the stock has gained 2.92%. Market capitalisation of the firm rose to Rs 2,206 crore.
Total 2.29 lakh shares changed hands today amounting to turnover of Rs 8.19 crore on BSE.
Nomura has raised its price target on VA Tech Wabag to Rs 581, implying a 76% upside to the current market price after the firm reported a strong set of earnings for September quarter.
The brokerage said order inflows were robust for first half of FY22. Execution was on track to achieve Rs 3,100-3,300 crore in sales for FY22. Start of execution for international projects in Russia and Malaysia from second half add visibility on a rise in execution besides the usual seasonal uptick.
"Industrial water capex is increasingly focused on self-sufficiency and to meet increased regulatory scrutiny. This should support 15% per annum growth in prospects for higher-margin industrial water capex for next five-seven years, according to management, which provides long-term order inflow visibility," Nomura said.
The firm reported a 86.14% rise in consolidated profit for the quarter ending September 30, 2021. Net profit climbed to Rs 25.93 crore in Q2 against Rs 13.93 crore profit during the corresponding quarter last year.
Net sales rose to Rs 68.39 crore in the September quarter against Rs 60.83 crore sales in the corresponding quarter of previous fiscal.
For the half year ended September 30, 2021 consolidated profit stood at Rs 40.50 crore, rallying 113.49% against Rs 18.97 crore profit in the year ago period.
Also read: Rs 22 to Rs 118: This stock held by Rakesh Jhunjhunwala turned into a multibagger in one year
For the six-month period ending September 30, 2021 consolidated total income climbed 30.47% to Rs 1,359.25 crore against Rs 1,042.26 crore logged in the corresponding period of last financial year.
The company is engaged in water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.