Multibagger Jhunjhunwala stock under bear attack, what should investors do?

Shares of VA Tech Wabag are under bear attack in the short term. The multibagger stock, which rallied 654% in five years, is down 16.5% in 2025. The Jhunjhunwala stock has lost 10.52% in a year. Rekha Jhunjhunwala, wife of late ace investor Rakesh Jhunjhunwala, held 8.04% stake or 50 lakh shares in the water treatment firm in the September 2025 quarter. 

VA Tech Wabag shares signal bearishness in both long and the short term since the stock is trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

VA Tech Wabag stock opened on a flat note at Rs 1408 in the current session. Market cap of the firm stood at Rs 8766 crore. 

The stock has gained 438% in three years and risen 219% in two years. 

VA Tech Wabag stock has a one-year beta of 1.4, indicating very high volatility during the period.

The stock hit a 52 week low of Rs 1109.35 on January 28, 2025 and a 52 week high of Rs 1943.45 on December 9, 2024. It has fallen 28% from 52-week high of Rs 1943.95 reached on December 9, 2024. 

In terms of technicals, the relative strength index (RSI) of VA Tech Wabag stands at 35.2, signaling it's trading neither in the overbought zone nor in the oversold zone. 

Brokerage Prabhudas Lilladher says the stock can be bought with targets of Rs 1,770-1,900 and a stoploss at Rs 1,270.

"After a brief corrective phase, VA Tech Wabag has found strong support near Rs 1,390, forming a double-bottom pattern that signals a potential rebound. The RSI points to a trend reversal, and the chart setup appears bullish," adds the brokerage. 

Axis Securities has a BUY recommendation on the stock with a target price of Rs 1,920/share. 

The brokerage expects Wabag’s revenue to grow at a 15%–20% CAGR over the next 3–5 years, with its strategic shift toward higher-margin international, industrial, and O&M contracts, supporting EBITDA margin expansion to 13%–15%. 

"With a well-diversified Rs 13,700 Cr order book and increasing traction in emerging segments like semiconductors and green hydrogen, we believe Wabag is poised to deliver superior risk-adjusted returns," said Axis. 

Mirae Asset Sharekhan has a buy call on the stock with a target of Rs 1770. Another brokerage Motilal Oswal is bullish on the stock with a target of Rs 1,900 per share. 

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.