Va Tech Wabag, a prominent Indian water treatment company, is poised for significant stock growth, with brokerage firm JM Financial projecting a 26% upside within the next year. The positive outlook stems from the company's record-high order backlog, which is expected to underpin strong earnings expansion.
Strong Order Book Drives Optimism
JM Financial has initiated coverage on Va Tech Wabag with a 'BUY' recommendation, setting a price target of Rs 1755. Analysts highlight that Wabag's robust and well-diversified order backlog, particularly across international markets and municipal platforms, provides excellent multi-year revenue visibility. This strong foundation is anticipated to drive substantial financial performance in the coming years.
The brokerage firm forecasts Va Tech Wabag's revenue and profit after tax (PAT) to achieve a Compound Annual Growth Rate (CAGR) of 15% and 17% respectively, between fiscal years 2025 and 2028. This growth trajectory is a key factor in their optimistic valuation.
Key Investor Holdings and Market Performance
As of the December 2025 quarter, Rekha Jhunjhunwala, wife of the late renowned investor Rakesh Jhunjhunwala, held a notable 8.03% stake in Va Tech Wabag, amounting to 50 lakh shares. This significant holding by a prominent investor family often signals confidence in a company's prospects.
The stock has demonstrated impressive historical performance, surging 267% over the past three years and an remarkable 507% in five years. In the most recent trading session, Va Tech Wabag shares rose 3.48% to Rs 1437.80, pushing the firm's market capitalization to Rs 8,991 crore.
Technical Indicators Signal Bullish Trend
Technically, Va Tech Wabag's stock appears to be in a favorable position. The Relative Strength Index (RSI) stands at 62.2, indicating that the stock is neither in an oversold nor an overbought zone. Furthermore, the shares are trading above their 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, signaling a bullish trend in both the short and long term.
Va Tech Wabag Limited specializes in comprehensive water treatment solutions, including the design, supply, installation, construction, and operational management of plants for drinking water, wastewater, industrial water, and desalination. Their expertise covers a wide range of services from water reclamation to sludge treatment, addressing critical environmental and industrial needs.