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VA Tech Wabag Shares Forecasted for Up to 31% Upside by Analysts

· · 2 min read

Analysts project VA Tech Wabag shares could see an upside of up to 31% over the next 12 months. Firms like ICICI Securities, JM Financial, and MOFSL have issued 'Buy' ratings with revised price targets, citing strong Q4 results and a robust project pipeline.

VA Tech Wabag Ltd. shares have been earmarked for significant growth potential by leading financial analysts, with projections suggesting an upside of up to 31% within the next year. This optimistic outlook comes despite the stock's 4.49% decline over the past 12 months, following a recent 4.79% surge to Rs 1,522 on the BSE after its Q4 earnings report.

Analyst Recommendations and Price Targets

Several prominent financial institutions have reiterated 'Buy' ratings for VA Tech Wabag, adjusting their price targets upwards:

  • ICICI Securities: Maintained a 'Buy' rating with a revised target of Rs 1,680, attributing the positive sentiment to robust execution driving Q4 earnings momentum.
  • JM Financial: Issued a target of Rs 1,835, noting VA Tech Wabag's strong positioning for long-term growth. The firm also anticipates EPS upgrades of 4% for both FY27 and FY28, driven by higher revenue forecasts.
  • MOFSL: Set the highest target at Rs 1,950, implying a potential 31% upside. MOFSL increased its revenue estimates by 3-4% and reiterated a 'BUY' rating with a target price of Rs 1,905, based on 22 times FY28 P/E. They highlighted the outlook for strong free cash flow generation, a net cash status of Rs 1,000 crore, and improving return ratios as key attractions.

Company Outlook and Strategy

VA Tech Wabag has maintained its long-term revenue growth guidance of 15-20%, with the possibility of exceeding this in FY27 due to a strong backlog of projects. The company also upheld its EBITDA margin guidance of 13–15%.

Management indicated a robust bid pipeline across key regions, including the Middle East, Africa, and CIS. Furthermore, the company is actively considering share buybacks alongside higher dividend payouts, while carefully balancing the need to preserve cash for strategic acquisitions and future growth opportunities.

With improved operational execution, a healthy existing order book, and promising new order prospects, ICICI Securities estimates VA Tech Wabag's revenue to grow at a 14% CAGR over FY26-28E, maintaining an EBITDA margin of 13.5%.

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