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Market Cap

₹15.0b

Last Updated

2021/05/07 12:19 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has VA Tech Wabag's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WABAG is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WABAG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.3%

WABAG

-0.4%

IN Water Utilities

2.0%

IN Market


1 Year Return

114.5%

WABAG

-11.6%

IN Water Utilities

66.6%

IN Market

Return vs Industry: WABAG exceeded the Indian Water Utilities industry which returned -10.3% over the past year.

Return vs Market: WABAG exceeded the Indian Market which returned 67.3% over the past year.


Shareholder returns

WABAGIndustryMarket
7 Day-3.3%-0.4%2.0%
30 Day-7.6%-7.3%1.2%
90 Day20.5%1.2%4.9%
1 Year114.5%114.5%-8.4%-11.6%69.2%66.6%
3 Year-49.3%-49.8%-11.2%-18.8%28.2%21.8%
5 Year-57.9%-58.9%-11.3%-21.6%90.5%76.0%

Long-Term Price Volatility Vs. Market

How volatile is VA Tech Wabag's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VA Tech Wabag undervalued compared to its fair value and its price relative to the market?

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WABAG (₹240.45) is trading below our estimate of fair value (₹248.85)

Significantly Below Fair Value: WABAG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WABAG is poor value based on its PE Ratio (14.4x) compared to the XA Water Utilities industry average (13.9x).

PE vs Market: WABAG is good value based on its PE Ratio (14.4x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: WABAG is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: WABAG's PB Ratio (1x) is in line with the XA Water Utilities industry average.


Future Growth

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

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABAG's forecast earnings growth (29.7% per year) is above the savings rate (6.8%).

Earnings vs Market: WABAG's earnings (29.7% per year) are forecast to grow faster than the Indian market (23.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WABAG's revenue (13.9% per year) is forecast to grow faster than the Indian market (13.4% per year).

High Growth Revenue: WABAG's revenue (13.9% 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 (10.9%).


Past Performance

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

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WABAG has high quality earnings.

Growing Profit Margin: WABAG's current net profit margins (3.6%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: WABAG's earnings have declined by 2.5% per year over the past 5 years.

Accelerating Growth: WABAG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WABAG had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Water Utilities industry average (5.9%).


Return on Equity

High ROE: WABAG's Return on Equity (6.7%) is considered low.


Financial Health

How is VA Tech Wabag's financial position?


Financial Position Analysis

Short Term Liabilities: WABAG's short term assets (₹32.6B) exceed its short term liabilities (₹24.1B).

Long Term Liabilities: WABAG's short term assets (₹32.6B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: WABAG's debt to equity ratio (29.6%) is considered satisfactory.

Reducing Debt: WABAG's debt to equity ratio has reduced from 38.3% to 29.6% over the past 5 years.

Debt Coverage: WABAG's debt is well covered by operating cash flow (32.7%).

Interest Coverage: WABAG's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Dividend

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

1.55%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WABAG's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Rajiv Mittal (60 yo)

5.58yrs

Tenure

₹20,849,000

Compensation

Mr. Rajiv Devaraj Mittal has been the Managing Director of Va Tech Wabag Ltd since September 27, 2000 and has been its Group Chief Executive Director since October 1, 2015 and Head of SBU MBG. Mr. Mittal h...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD283.16K) is about average for companies of similar size in the Indian market ($USD257.66K).

Compensation vs Earnings: Rajiv's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WABAG's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: WABAG's board of directors are considered experienced (5.9 years average tenure).


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.7%.


Top Shareholders

Company Information

VA Tech Wabag Limited's company bio, 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
  • Market Cap: ₹14.994b
  • Shares outstanding: 62.19m
  • Website: https://www.wabag.com

Number of Employees


Location

  • VA Tech Wabag Limited
  • WABAG House
  • No.17
  • Chennai
  • Tamil Nadu
  • 600117
  • India

Listings


Biography

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 des...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 12:19
End of Day Share Price2021/05/07 00:00
Earnings2020/12/30
Annual Earnings2020/03/31


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.