Rs 19,400-cr order book: Up 92% from 52-week low, Axis Direct turns bullish on this multibagger stock

Shares of VA Tech Wabag, the water treatment firm, are set for a 11% upside in a year, according to brokerage Axis Direct. VA Tech Wabag stock rose 4% to high of Rs 1977.35 against the previous close of Rs 1897. Market cap of the firm stood at Rs 12,326 crore. A total of 0.21 lakh shares of VA Tech Wabag changed hands amounting to a turnover of Rs 4.06 crore. VA Tech Wabag stock has a one-year beta of 1.36, indicating high volatility during the period.  The stock hit a 52 week low of Rs 1033.95 on January 27, 2026. Since then, the stock has surged 92%.

In terms of technicals, the relative strength index (RSI) of VA Tech Wabag stands at 44, signaling it's trading in the neither in the overbought 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.  The stock has gained  472% in five years and risen 241% in two years.

Axis Direct said VA Tech Wabag reported a robust performance for Q1FY27, with consolidated revenue increasing 21% year-on-year to Rs 887 crore. The company also remained in a net-cash position for the 14th consecutive quarter, with net cash at Rs 965 crore, excluding HAM. Management has retained its 15–20% revenue growth guidance for FY27.

Record order book 

The brokerage believes that record order book provides Multi-Year Revenue Visibility.

The company’s order book expanded to a record Rs 19,400 crore, equivalent to more than four times its annual revenue, offering strong visibility for future growth.

Order inflows during Q1FY27 crossed Rs 3,400 crore, with international projects contributing around 77 of the total.

Major wins included desalination and wastewater treatment projects in Kuwait and the UAE. The company has also sharpened the quality of its backlog by adopting a disciplined bidding approach and removing around Rs 600 crore of non-effective framework contracts, the brokerage said.

Beyond municipal projects, rising demand for specialised water-treatment solutions from sectors such as semiconductors, solar PV, data centres and green hydrogen is creating additional growth opportunities for the company.

Asset-Light Strategy Supports Strong Returns: VA Tech Wabag’s asset-light and modular operating model continues to deliver healthy capital efficiency. RoCE stood at 19.6% and RoE at 16% in Q1FY27. Net working capital remained under control at 108 days, within management’s targeted range of 100–110 days.

The company expects its growing international exposure to further strengthen payment quality and improve working-capital efficiency. Investors will also be watching the upcoming “Vriddhi 2.0” strategy, expected to be unveiled in May 2027, which could provide greater clarity on technology-led expansion, growth in the higher-margin operations and maintenance business, and the company’s long-term cash-generation potential.