Rs 235 to Rs 989: This stock delivered multibagger returns in two years, approached record high today

Shares of water treatment firm VA Tech Wabag have delivered multibagger returns in the last two years. The stock, which closed at Rs 234.95 on May 27, 2022 rose to a high of Rs 989.50, rising 321% during the period. The benchmark BSE small cap index has risen 86% during the period. The 30-stock benchmark Sensex has gained 36% during the same period.

In the current session, VA Tech Wabag stock climbed 1.38% to Rs 989.50 in the current session. Market cap of VA Tech Wabag stock climbed to Rs 6095 crore. A total of 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 3.39 crore on BSE. VA Tech Wabag stock has a one-year beta of 0.7, indicating low volatility during the period.

The stock hit a 52 week low of Rs 436.35 on October 12, 2023 and a record high of Rs 1030 on April 25, 2024. 

In terms of technicals, the relative strength index (RSI) of VA Tech Wabag stands at 58, signaling it's trading neither in the overbought zone nor in the oversold zone. VA Tech Wabag shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages. 

According to a report, Va Tech Wabag is India's biggest and the world's 3rd largest water infratech company with Rs 12,500 cr orderbook (58% EPC and 42% O&M), 125 plus IP rights, R&D centre in Europe and is among the global top 10 desalination players.

Brokerage Nuvama in a management meet note said, "Va Tech Wabag is on track to deliver 15-20% revenue growth over the next three-to-four years, along with 14% (+/-1%) margin, backed by a strong bid pipeline ($1 bn). It aims to achieve a mix of more than 50% revenue from international projects, 30% from industrial customers, and one-third from engineering and procurement contracts in order to maintain an asset-light balance sheet. Va Tech Wabag is in an attractive space with long-term revenue visibility, impressive operational performance and entry into new segments to make it future ready. At the current market price, the stock trades at 18x/16x FY25E/FY26E EPS of Rs 51/Rs 58. The stock is not rated."

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.