Investors Hit Hard As VA Tech Wabag Plunges 11% – Should You Hold Or Sell The Stock?

Shares of multibagger stock VA Tech Wabag Ltd took a sharp hit, plunging 19% following the cancellation of a significant Rs 2,700 crore order from a Saudi Arabian client. The stock, which has delivered an impressive 140% return in 2024 so far, dropped 19.17% to touch an intraday low of Rs 1,522.30. The cancelled order pertains to the construction of a 300 mega litres per day seawater desalination plant in Yanbu, Kingdom of Saudi Arabia. The company informed investors that the client had notified tender participants about the cancellation of the tender due to internal administrative procedures. This steep decline has left investors wondering whether to seize the opportunity to buy on the dip or reduce their holdings. Market expert Kush Ghodasara has shared his insights on the situation. While he highlights the strong fundamentals of VA Tech Wabag, he advises caution in the short term. Kush Ghodasara notes that the stock has gapped down with high volumes and may test its 200-day moving average, which is around Rs 1,300. He suggests avoiding fresh buying at current levels and waiting for a further decline to the Rs 1,300 range, which could offer a better entry point. For long-term investors, he emphasises that there is no cause for concern, and holding the stock is recommended.

Tune in to this video to get a detailed analysis of VA Tech Wabag’s performance, expert opinions on the stock's future trajectory, and strategic recommendations for investors. Don’t forget to like, share, and subscribe to stay updated with the latest stock market news and insights!