Shares of Va Tech Wabag Ltd. experienced a notable increase, rising almost 5% in Monday's trading session. This surge followed the announcement that the multinational water technology firm had secured a significant order from the Bangalore Water Supply and Sewerage Board (BWSSB).
New Bengaluru Water Infrastructure Project
The newly awarded contract, classified as a "large order" (valued between Rs 250 crore and Rs 600 crore), entails the comprehensive design, engineering, procurement, construction, and commissioning of critical wastewater treatment facilities. This includes two sewage treatment plants (STPs) with capacities of 100 MLD (million liters per day) and 60 MLD at Byramangala and Bellandur, respectively, along with a 25 MLD tertiary treatment plant at Byramangala.
Va Tech Wabag confirmed that the scope also covers a seven-year operations and maintenance (O&M) period following the 36-month construction phase. The STPs will utilize the Activated Sludge Process integrated with a Biological Nutrient Removal system, while the tertiary plant will employ Ultrafiltration to produce high-quality treated water suitable for local distribution.
Sustainable Solutions for Urban Growth
A key aspect of the project is the integration of biogas-based power generation with anaerobic sludge digestion. This innovative approach aims to reduce greenhouse gas emissions, lower the plants' energy footprint, and enhance operational efficiency, aligning with Bengaluru's sustainability and circular economy objectives.
S. Natrajan, Vice President & Head for Sales and Marketing at Va Tech Wabag, emphasized that these "twin wins" from BWSSB reinforce the company's leadership in India's municipal wastewater treatment sector. He highlighted the project's role in strengthening Bengaluru's water infrastructure and addressing challenges posed by rapid urbanization.
Analyst Outlook and Stock Performance
Following the news, Va Tech Wabag shares reached a high of Rs 2,089 apiece, significantly cutting its one-week losses. Analyst firms have offered varied price targets for the stock. Systematix reiterated a 'Buy' rating with a target of Rs 2,075, while MOFSL maintained its 'Buy' rating, setting a higher target of Rs 2,529. Yes Securities pegged the stock at Rs 2,090 in a recent note. However, Bloomberg data indicates that the consensus target based on 11 recommendations suggests nil upside potential from current levels.