VA Tech Wabag shares snap 7-day fall, jump 8% today. Here's why

Shares of VA Tech Wabag Ltd gained sharp momentum in Wednesday's trade, halting their seven-day losing run. The stock climbed 8.21 per cent to hit a day high of Rs 1,312.10. It was last seen trading 7.06 per cent higher at Rs 1,298. At this price, the scrip has lost 22.48 per cent on a year-to-date (YTD) basis.

Today's upmove in the share price came after the pure-play water technology firm bagged a seven-year operation contract order worth Rs 121 crore. "Wabag continues to expand its presence in the Middle East region and strengthen its leadership in the O&M business, securing an order worth $14 million (Rs 121 crore) from BAPCO Refining B.S.C (BAPCO) towards operation (O&M) of Industrial Wastewater Treatment Plant (IWTP) located in the Kingdom of Bahrain, for a period of 7 years," the company stated in a BSE filing.

"This state-of-the-art IWTP treats 4,400 US gallons per minute (USGPM) of Wastewater and is based on advanced Membrane Bioreactor (MBR) technology, which ensures superior treatment efficiency, meeting stringent environmental and industrial standards," it also said.

"With this breakthrough order, WABAG further extends its O&M portfolio in the Kingdom of Bahrain. It is worth noting that WABAG is already performing the O&M of the 40 MLD Madinat Salman Sewage Treatment Plant in the Kingdom of Bahrain, since November 2018," Wabag added.

Commenting on this order win, Srinivasan K, GM - Middle East Regional Headquarters (RHQ), said, "We are extremely happy to secure this Industrial Wastewater treatment operations order in the Kingdom of Bahrain. We express our gratitude to BAPCO for their trust and confidence in WABAG. This order win is a testament to our technological excellence and our unwavering commitment to delivering world-class water solutions to the oil and gas sector globally."

Technically, the stock traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 23.7. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the counter has a price-to-equity (P/E) ratio of 33.34 against a price-to-book (P/B) value of 5.02. Earnings per share (EPS) stood at 38.98 with a return on equity (RoE) of 15.05. Promoters held a 19.13 per cent stake in Wabag during the December 2024 quarter.

Around 15,000 shares changed hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 48,000 shares. Turnover on the counter came at Rs 1.94 crore, commanding a market capitalisation (m-cap) of Rs 8,082.27 crore.