How to Make Money from Water: The Case of VA Tech Wabag Ltd Share

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Why you should consider investing in this water engineering company that offers sustainable solutions for a better life

Water is not only essential for life, but also a valuable commodity that can generate attractive returns for investors. With the growing demand for clean and safe water across the world, the water sector offers immense opportunities for growth and profitability. One of the companies that stands out in this sector is VA Tech Wabag Ltd, an Indian multinational company that specializes in water and wastewater treatment for municipal and industrial users.

VA Tech Wabag Ltd was founded in Breslau, Germany in 1924 and has a rich history of innovation and excellence in the field of water engineering. The company has completed more than 6000 projects and is present across more than 30 countries. The company offers a comprehensive range of solutions for drinking water treatment, industrial and process water treatment, sea and brackish water desalination, municipal wastewater treatment, industrial wastewater treatment, sludge treatment and water reclamation. The company also provides engineering, procurement, construction and commissioning (EPCC), operation and maintenance (O&M), design-build-operate (DBO) and build-own-operate-transfer (BOOT) services to its clients.

VA Tech Wabag Ltd has a strong track record of delivering quality projects on time and within budget. Some of the notable projects executed by the company include:

  • South East Asia’s largest Sea Water Desalination project in Chennai: A design-build-operate (DBO) contract for a 400 million litres per day (MLD) desalination plant at Perur near Chennai.
  • Putatan Water Treatment Plant in Philippines: Extension and upgrade of process technology employing dissolved air flotation (DAF), biological aerated filter (BAF) and ultrafiltration (UF). Purification of Laguna lake water.
  • Muttenz Water Treatment Plant in Switzerland: New process technology for the removal of micropollutants in groundwater.
  • Greater Dambulla Water Supply Scheme in Sri Lanka: Intake, water treatment plant and distribution network for providing potable water to Dambulla city and surrounding villages.
  • El Raswa Water Treatment Plant in Egypt: An advanced treatment design for the purification of seawater using reverse osmosis (RO) technology for Suez Canal Authority.

VA Tech Wabag Ltd has also been recognized by various awards and accolades for its excellence in water engineering. Some of the recent awards received by the company include:

  • Global Water Award 2023 for Industrial Water Project of the Year for Reliance Jamnagar Refinery Project
  • Dun & Bradstreet Infra Award 2023 for Best Water Project for Nemmeli Seawater Desalination Plant
  • Frost & Sullivan India Manufacturing Excellence Award 2023 for Operational Excellence Leadership

India Today Safaigiri Award 2023 for Best Reuse/Recycle Project for Namami Gange Project

VA Tech Wabag Ltd share price has been performing well in the stock market, reflecting its strong fundamentals and growth prospects. The company’s share price has increased by more than 114% in the last one year, outperforming the NSE Nifty index by more than 90%. The company’s share price closed at ₹462.00 on June 19, 2023, with a market capitalization of ₹2,838 crore.

The company’s financial performance has also been impressive, despite the challenges posed by the Covid-19 pandemic. The company’s revenue increased by 3.92% year-on-year to ₹9.27 billion in the fourth quarter of fiscal year 2023, while its net loss narrowed by 339.96% year-on-year to ₹1.11 billion. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 53.55% year-on-year to ₹1.08 billion.

The company’s future outlook is also positive, as it has a strong order book of ₹10,500 crore as on March 31, 2023, which provides revenue visibility for the next three years. The company is also focusing on expanding its presence in new geographies and segments, such as industrial water treatment, desalination and reuse/recycle projects. The company is also leveraging its digital capabilities and innovation to enhance its operational efficiency and customer satisfaction.

Conclusion

VA Tech Wabag Ltd share is a water stock worth investing in, as it offers a unique combination of growth, profitability and sustainability. The company is well-positioned to capitalize on the rising demand for water and wastewater solutions across the world, with its global expertise, local presence and customer focus. The company’s vision is to be the most respected company in water by creating value for all its stakeholders.

Disclaimer

This blog post is for informational purposes only and does not constitute any investment advice or recommendation. The author is not a financial professional and does not guarantee the accuracy or completeness of the information provided. The reader should do their own research and consult a qualified financial advisor before making any investment decision. The author is not liable for any losses or damages arising from the use of this blog post.


Keywords: VA Tech Wabag Ltd share, water stock, water engineering, water treatment, wastewater treatment, desalination, EPCC, O&M, DBO, BOOT

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