Rekha Jhunjhunwala stock: DIIs triple stake in two years; Systematix lists out triggers 

Shares of VA Tech Wabag Ltd, the water treatment firm, have become among the favourites of the domestic institutional investors (DIIs) since December 2024. The multibagger stock saw DIIs tripling their stake from 2% in the December 2024 quarter to 6.3% in the June 2026 quarter. On the contrary, public shareholders have been paring their stake gradually since two years. In the June 2024 quarter, public shareholders owned 64.4% stake, which fell to 56.3% in the June 2026 quarter. 

Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 8.02% stake or 50 lakh shares in the water treatment firm in the June 2026 quarter.    

In the current session, VA Tech Wabag stock climbed 4.6% to Rs 2067 on BSE. Market cap of the firm rose to Rs 12,735 crore. A total of 0.40 lakh shares of the firm changed hands amounting to a turnover of Rs 8.25 crore on BSE. VA Tech Wabag stock has a one-year beta of 1.34, indicating high volatility during the period. The multibagger stock has gained 311% in three years and 516% in five years. In three months, the stock has zoomed 47%. 

The stock hit a 52 week low of Rs 1033.95 on January 27,2026 and a 52 week high of Rs 2252.40 on July 13, 2026. 

Brokerage Systematix is bullish on the stock with a target price of Rs 2,263. The brokerage listed out triggers that could support the VA Tech Wabag stock in a year. 

Strong Order Book

VA Tech Wabag’s order book reached an all-time high of Rs 19400 crore, rising 33% year-on-year and 16.7% quarter-on-quarter, excluding framework contracts.

Strong order inflow

The company secured Rs Rs 3430crore worth of orders in Q1 FY27. The current order book provides revenue visibility of over four times annualised revenue, supporting a strong medium-term growth outlook.

Selective bidding strategy

Wabag continues to remain selective in its bidding approach, with a focus on technology-intensive and complex projects rather than pursuing volume-led order acquisition.

Healthy balance sheet

Cash generation remained robust, with gross cash at Rs 1080 crore and net cash, excluding HAM, at Rs 970 crore. The company has maintained positive net cash for the 14th consecutive quarter.

Strong margin outlook

Management is targeting an EBITDA margin of 13–14% in FY27, with a longer-term ambition to exceed 15%, supported by economies of scale and improved execution.

Large bid pipeline

Wabag has an active bid pipeline worth $2–3 billion across its target geographies. The company remains focused on technologically complex projects and aims to maintain an order book-to-revenue ratio above 3x.

Emerging growth opportunities

The company is exploring opportunities in data centres, solar PV manufacturing, semiconductors and green hydrogen. However, these businesses are expected to become meaningful contributors over the next 3–5 years, rather than within the next 12–18 months.

Growth visibility 

Management continues to see a favourable medium-term outlook, supported by strong execution, healthy order inflows and favourable industry trends. It is targeting 15–20% revenue CAGR and 13–15% EBITDA margins over the medium term.

Earnings outlook

Revenue, EBITDA and PAT are estimated to grow at CAGRs of 18%, 24% and 25%, respectively, over FY26–FY28E. RoE and RoCE are expected to improve to 16% and 17%, respectively, by FY28E.

Q1 earnings 

VA Tech Wabag reported a 29.8% fall in consolidated net profit to Rs 90.1 crore in Q1 compared with Rs 128.3 crore in Q4 FY26. Revenue from operations rose 20.8% YoY to Rs 886.8 crore in Q1. On a year-on-year basis, consolidated net profit rose 36.9%, while revenue from operations increased 20.8%. Total expenses rose 25.4% YoY to Rs 826.1 crore in Q1 against Rs 658.6 crore in Q1 FY26. Employee benefits expense increased 19.7% YoY to Rs 79.7 crore, while finance costs declined 8.5% to Rs 17.2 crore.

About the company

VA Tech Wabag Limited is engaged in the water treatment field. The company's principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. It provides solutions for drinking water treatment, industrial and process water treatment, water reclamation, sea and brackish water desalination, municipal waste water treatment, industrial waste water treatment and sludge treatment.