VA Tech Wabag shares jump 9% on strong Q4 earnings

Shares of VA Tech Wabag Ltd surged 8.55 per cent in Thursday's trade to hit a high of Rs 1,530 backed by quarterly earnings. The company posted a robust performance for the fourth quarter (Q4 FY25), with net profit increasing by 37.4 per cent year-on-year (YoY) to reach Rs 99.5 crore. This was supported by a 23.8 per cent rise in revenue, which amounted to Rs 1,156.2 crore.

The company's EBITDA grew by 21.9 per cent to Rs 140.8 crore, while operating margins held steady at 12.2 per cent. The board has proposed a final dividend of Rs 4 per equity share for FY25.

The company maintained a strong cash position, ending FY25 with gross cash of Rs 946.2 crore and net cash of Rs 589 crore, marking the fifth consecutive year of being net cash positive.

Excluding HAM (Hybrid Annuity model) projects, the net cash stood at Rs 706 crore. VA Tech Wabag reported order inflows worth Rs 5,700 crore for the year, contributing to a total order book of Rs 13,700 crore, which includes framework contracts, ensuring strong revenue visibility in the future.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-day and 200-day simple moving averages (SMAs) but lower than the 150-day simple moving average (SMA). Its 14-day relative strength index (RSI) came at 63.52. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 38.28 against a price-to-book (P/B) value of 5.80. Earnings per share (EPS) stood at 39.28 with a return on equity (RoE) of 15.16. According to Trendlyne data, VA Tech has a one-year beta of 1.4, indicating high volatility.

Along with the price action, the scrip saw high trading volume on BSE as well. Around 95,000 shares were last seen changing hands, higher than the two-week average volume of 20,000. Turnover on the counter came at Rs 14.29 crore, commanding a market capitalisation (m-cap) of Rs 9,353.75 crore.