880% Returns: Multibagger Stock VA Tech Wabag Jumps On New Order Worth Rs 700 Crore In Zambia; BUY?

The shares of VA Tech Wabag Ltd rallied by 6.67% to reach Rs 1,690 per share on the BSE during intraday trading on Friday. The surge came after the company announced securing a design, build, and operate (DBO) order worth €78 million (approximately Rs 700 crore) from the Lusaka Water Supply and Sanitation Company (LWSC). This project is multi-laterally funded by the European Investment Bank (EIB) and Kreditanstalt für Wiederaufbau (KfW) of Germany.

The latest order represents a milestone for VA Tech Wabag as it marks the company's entry into Zambia, further expanding its footprint in Africa. In a statement on Friday, the company emphasized its strengthened position as a comprehensive water solutions provider on the continent.

Under the contract, VA Tech Wabag will oversee the engineering, procurement, and construction (EPC) of two advanced wastewater treatment plants (WWTPs) located in Ngwerere and Chunga, Zambia. These include a 54 MLD WWTP and a 19 MLD WWTP, which will play a role in enhancing wastewater management in the region.

The project will be executed in two phases, the EPC phase, spanning 36 months, and a 24-month Operation & Maintenance (O&M) phase, ensuring sustained performance and efficiency of the plants.

VA Tech Wabag has established itself as a leader in the water industry with over a century of expertise. Operating as a water technology multinational, the company delivers total water solutions to both municipal and industrial sectors across the globe.

With a team of over 1,600 professionals in more than 25 countries, Wabag impacts millions of lives daily by providing customized water and wastewater management solutions. Over the past 30 years, the company has constructed more than 1,400 water and wastewater plants worldwide, handling every aspect from design and engineering to long-term operational management.

VA Tech Wabag's stock has been a standout performer in the market. In the last six months, the stock rose 28%, outperforming the BSE Sensex, which dipped by 0.43% over the same period. In the last year, the stock delivered a 167% gain, compared to the 9.5% decline in the BSE Sensex.

As of 1:50 pm on Friday, the stock was trading at Rs 1,657 per share on the NSE, up by 4.48%, while the Nifty 50 benchmark rose by 0.45% to 23,855 levels.

VA Tech Wabag boasts a market capitalization of Rs 10,345.07 crore. The stock is currently trading at a price-to-earnings (P/E) multiple of 42.67 times, with an earnings per share (EPS) of Rs 38.98.

This new order not only expands VA Tech Wabag's reach in Africa but also reinforces its position as a key player in the global water solutions market. With a robust pipeline of projects, strong financial growth, and a proven track record, VA Tech Wabag remains well-positioned to capitalize on the rising demand for water and wastewater treatment solutions, both domestically and internationally.