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VA Tech Wabag NSEI:WABAG Stock Report

Last Price

₹255.25

Market Cap

₹15.9b

7D

-8.4%

1Y

-23.5%

Updated

02 Oct, 2022

Data

Company Financials +
WABAG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends0/6

WABAG Stock Overview

VA Tech Wabag Limited, together with its subsidiaries, engages in the design, supply, installation, construction, and operational management of drinking water, waste and industrial water treatment, and desalination plants in India and internationally.

VA Tech Wabag Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VA Tech Wabag
Historical stock prices
Current Share Price₹255.25
52 Week High₹375.00
52 Week Low₹216.00
Beta1.44
1 Month Change-5.32%
3 Month Change7.47%
1 Year Change-23.51%
3 Year Change-2.22%
5 Year Change-56.53%
Change since IPO-24.26%

Recent News & Updates

Sep 06
Capital Allocation Trends At VA Tech Wabag (NSE:WABAG) Aren't Ideal

Capital Allocation Trends At VA Tech Wabag (NSE:WABAG) Aren't Ideal

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Jun 03
Analysts Are More Bearish On VA Tech Wabag Limited (NSE:WABAG) Than They Used To Be

Analysts Are More Bearish On VA Tech Wabag Limited (NSE:WABAG) Than They Used To Be

Today is shaping up negative for VA Tech Wabag Limited ( NSE:WABAG ) shareholders, with the analysts delivering a...

Shareholder Returns

WABAGIN Water UtilitiesIN Market
7D-8.4%-3.5%-1.7%
1Y-23.5%-27.0%-0.6%

Return vs Industry: WABAG exceeded the Indian Water Utilities industry which returned -27% over the past year.

Return vs Market: WABAG underperformed the Indian Market which returned -0.6% over the past year.

Price Volatility

Is WABAG's price volatile compared to industry and market?
WABAG volatility
WABAG Average Weekly Movement5.0%
Water Utilities Industry Average Movement4.9%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

Stable Share Price: WABAG is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WABAG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995968Rajiv Mittalhttps://www.wabag.com

VA Tech Wabag Limited, together with its subsidiaries, engages in the design, supply, installation, construction, and operational management of drinking water, waste and industrial water treatment, and desalination plants in India and internationally. The company offers sewage treatment, drinking water treatment, effluent treatment, water recycle and reuse, desalination, wastewater treatment, and sludge treatment services for municipal and industrial users; engineering, procurement, and construction services, as well as operation and maintenance services; and financing, construction, and operation solutions for water and wastewater projects. It serves oil and gas, power plants, steel, fertilizer, food and beverage, water reclamation, industrial park, and other industries.

VA Tech Wabag Fundamentals Summary

How do VA Tech Wabag's earnings and revenue compare to its market cap?
WABAG fundamental statistics
Market Cap₹15.87b
Earnings (TTM)₹1.47b
Revenue (TTM)₹29.53b

10.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WABAG income statement (TTM)
Revenue₹29.53b
Cost of Revenue₹24.95b
Gross Profit₹4.58b
Other Expenses₹3.11b
Earnings₹1.47b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)23.61
Gross Margin15.50%
Net Profit Margin4.97%
Debt/Equity Ratio28.6%

How did WABAG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is WABAG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WABAG?

Other financial metrics that can be useful for relative valuation.

WABAG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA7.2x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does WABAG's PE Ratio compare to its peers?

WABAG PE Ratio vs Peers
The above table shows the PE ratio for WABAG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.7x
DPSCLTD India Power
83.3xn/a₹12.7b
517300 Gujarat Industries Power
6.7xn/a₹13.3b
532524 PTC India
5.3xn/a₹22.7b
GREENPOWER Orient Green Power
11.5xn/a₹6.3b
WABAG VA Tech Wabag
10.8x18.0%₹15.9b

Price-To-Earnings vs Peers: WABAG is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (26.7x).


Price to Earnings Ratio vs Industry

How does WABAG's PE Ratio compare vs other companies in the Asian Water Utilities Industry?

Price-To-Earnings vs Industry: WABAG is good value based on its Price-To-Earnings Ratio (10.8x) compared to the Asian Water Utilities industry average (13.6x)


Price to Earnings Ratio vs Fair Ratio

What is WABAG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WABAG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: WABAG is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).


Share Price vs Fair Value

What is the Fair Price of WABAG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WABAG (₹255.25) is trading above our estimate of fair value (₹86.64)

Significantly Below Fair Value: WABAG is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is VA Tech Wabag forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABAG's forecast earnings growth (18% per year) is above the savings rate (6.8%).

Earnings vs Market: WABAG's earnings (18% per year) are forecast to grow slower than the Indian market (18.5% per year).

High Growth Earnings: WABAG's earnings are forecast to grow, but not significantly.

Revenue vs Market: WABAG's revenue (11.1% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: WABAG's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WABAG's Return on Equity is forecast to be low in 3 years time (11.3%).


Discover growth companies

Past Performance

How has VA Tech Wabag performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.007%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WABAG has high quality earnings.

Growing Profit Margin: WABAG's current net profit margins (5%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: WABAG's earnings have grown by 0.01% per year over the past 5 years.

Accelerating Growth: WABAG's earnings growth over the past year (22.1%) exceeds its 5-year average (0.01% per year).

Earnings vs Industry: WABAG earnings growth over the past year (22.1%) exceeded the Water Utilities industry -0.5%.


Return on Equity

High ROE: WABAG's Return on Equity (9.7%) is considered low.


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Financial Health

How is VA Tech Wabag's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WABAG's short term assets (₹29.6B) exceed its short term liabilities (₹21.7B).

Long Term Liabilities: WABAG's short term assets (₹29.6B) exceed its long term liabilities (₹3.1B).


Debt to Equity History and Analysis

Debt Level: WABAG's net debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: WABAG's debt to equity ratio has reduced from 31.3% to 28.6% over the past 5 years.

Debt Coverage: WABAG's debt is not well covered by operating cash flow (2.7%).

Interest Coverage: WABAG's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


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Dividend

What is VA Tech Wabag current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.74%

Forecast Dividend Yield

Dividend Yield vs Market

VA Tech Wabag Dividend Yield vs Market
How does VA Tech Wabag dividend yield compare to the market?
SegmentDividend Yield
Company (VA Tech Wabag)0%
Market Bottom 25% (IN)0.4%
Market Top 25% (IN)1.6%
Industry Average (Water Utilities)4.5%
Analyst forecast in 3 Years (VA Tech Wabag)1.7%

Notable Dividend: Unable to evaluate WABAG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WABAG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WABAG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WABAG's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: WABAG is not paying a notable dividend for the Indian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WABAG has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Rajiv Mittal (62 yo)

22.08yrs

Tenure

₹29,672,000

Compensation

Mr. Rajiv Devaraj Mittal serves as Executive Chairman of VA Tech Wabag Limited since March 26, 2022. He has been the Managing Director of Va Tech Wabag Ltd since September 27, 2000 and has been its Group C...


CEO Compensation Analysis

Rajiv Mittal's Compensation vs VA Tech Wabag Earnings
How has Rajiv Mittal's remuneration changed compared to VA Tech Wabag's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

₹1b

Mar 31 2022₹30m₹28m

₹1b

Dec 31 2021n/an/a

₹1b

Sep 30 2021n/an/a

₹1b

Jun 30 2021n/an/a

₹1b

Mar 31 2021₹15m₹14m

₹1b

Dec 31 2020n/an/a

₹941m

Sep 30 2020n/an/a

₹831m

Jun 30 2020n/an/a

₹935m

Mar 31 2020₹21m₹20m

₹910m

Dec 31 2019n/an/a

₹1b

Sep 30 2019n/an/a

₹859m

Jun 30 2019n/an/a

₹946m

Mar 31 2019₹25m₹20m

₹1b

Dec 31 2018n/an/a

₹1b

Sep 30 2018n/an/a

₹1b

Jun 30 2018n/an/a

₹1b

Mar 31 2018₹27m₹20m

₹1b

Dec 31 2017n/an/a

₹1b

Sep 30 2017n/an/a

₹1b

Jun 30 2017n/an/a

₹1b

Mar 31 2017₹27m₹19m

₹1b

Dec 31 2016n/an/a

₹953m

Sep 30 2016n/an/a

₹1b

Jun 30 2016n/an/a

₹1b

Mar 31 2016₹27m₹19m

₹887m

Compensation vs Market: Rajiv's total compensation ($USD364.64K) is above average for companies of similar size in the Indian market ($USD229.70K).

Compensation vs Earnings: Rajiv's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WABAG's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: WABAG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of WABAG?
Owner TypeNumber of SharesOwnership Percentage
State or Government8920.001%
Private Companies2,200,3133.5%
Institutions14,412,73323.2%
Individual Insiders21,445,89834.5%
General Public24,130,59238.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 61.05% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
15.61%
Rajiv Mittal
9,709,406₹2.5b0%no data
8.04%
Rekha Jhunjhunwala
5,000,000₹1.3b0%no data
4.39%
Hermes Investment Management Limited
2,727,111₹696.1m8.63%0.06%
3.55%
Norges Bank Investment Management
2,210,068₹564.1m0%no data
3.51%
Subramanian Varadarajan
2,185,762₹557.9m0%no data
2.64%
Amundi Asset Management
1,639,066₹418.4m0%no data
2.57%
Shivnarayan Saraf
1,600,354₹408.5m0%no data
2.54%
SBI Funds Management Limited
1,578,163₹402.8m0%0.01%
2.52%
Massachusetts Institute of Technology Investment Management Company
1,567,000₹400.0m0%0.42%
2.41%
Basera Home Finance Private Limited
1,500,000₹382.9m0%no data
2.36%
Amit Sengupta
1,466,714₹374.4m0%no data
1.86%
Old Bridge Capital Management Private Limited
1,153,682₹294.5m0%2.99%
1.58%
Sushma Jain
983,662₹251.1m96.73%no data
1.3%
GKK Capital Markets Pvt. Ltd., Asset Management Arm
810,000₹206.8m0%5.65%
1.17%
ÖKoworld Lux S.A.
726,000₹185.3m-32.53%0.1%
1.13%
Dimensional Fund Advisors LP
703,926₹179.7m1.17%no data
1.13%
Sattva Investment Advisors Limited
700,313₹178.8m0%no data
0.8%
Anand Jain
500,000₹127.6m0%no data
0.64%
Equity Intelligence India Pvt. Ltd.
398,850₹101.8m0%1.29%
0.35%
Sun Life Global Investments Inc.
214,993₹54.9m0%0.03%
0.34%
Grantham Mayo Van Otterloo & Co. LLC
210,066₹53.6m0%no data
0.22%
State Street Global Advisors, Inc.
134,036₹34.2m4.27%no data
0.21%
Invesco Capital Management LLC
131,210₹33.5m0%no data
0.12%
Danske Capital AS
75,000₹19.1m0%no data
0.064%
Morgan Stanley Investment Management Inc.
39,977₹10.2m0%no data

Company Information

VA Tech Wabag Limited's employee growth, exchange listings and data sources


Key Information

  • Name: VA Tech Wabag Limited
  • Ticker: WABAG
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Water Utilities
  • Sector: Utilities
  • Implied Market Cap: ₹15.874b
  • Shares outstanding: 62.19m
  • Website: https://www.wabag.com

Number of Employees


Location

  • VA Tech Wabag Limited
  • WABAG House
  • No.17,200 Feet road
  • Chennai
  • Tamil Nadu
  • 600117
  • India


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WABAGNSEI (National Stock Exchange of India)YesEquity SharesININROct 2010
533269BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2010

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.