Shares of Va Tech Wabag Limited rose 4.5 per cent to hit an intraday high of Rs 349 on the Bombay Stock Exchange (BSE) after the company announced that it secured an order worth about $100 million towards engineering and procurement activities in relation to 120 Million Gallons Per Day (MiGD) Hassyan Sea Water Reverse Osmosis in the United Arab Emirates.
"The order was secured from Green EPC (a Utico FZC subsidiary) who is the prime EPC contractor for this project," the company said in its regulatory filing.
The stock ended 1.18 per cent higher at Rs 338.05 against the previous close of Rs 334.10 on BSE. Market cap of the company rose to Rs 2,102.35 crore. The shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
"Dubai Electricity and Water Authority (DEWA) selected Utico FZC as the preferred bidder to build the SWRO plant and operate it for 35 years, under the Independent Water Producer (IWP) model, wherein DEWA will off-take 100 per cent of the water from this plant," Va Tech Wabag said.
The company informed that the desalination plant is planned to be commissioned in phases by March 2024 and shall be the largest IWP in Dubai. The project is in the direction of Dubai's Clean Energy Strategy 2050 initiative to maximise the use of green energy for the production of desalinated water and aims at using solar power to supplement the power requirement of the plant during day time.
Commenting on the order win, Deep Raj Saxena, CEO of the Middle East and Africa Cluster said, "This is a significant break-through for WABAG in the UAE enabling us to showcase our technical capabilities and innovative solutions to ensure timely completion of this prestigious, challenging and fast track Desalination project of national importance with team Utico & Green EPC. With our first order in UAE, we have further consolidated our presence in the middle east region in line with our long-term vision."
According to MarketsMojo, the company has declared positive results for the last 4 consecutive quarters. The technical trend has improved from Mildly Bullish on January 12, 2022, and the stock is technically in a Bullish range.
The stock is trading at a discount compared to its average historical valuations and it has a very attractive valuation. The company has high institutional holdings at 20.84 per cent.
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