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VA Tech WabagNSEI:WABAG Stock Report

Market Cap

₹21.5b

7D

-3.1%

1Y

78.5%

Updated

25 Sep, 2021

Data

Company Financials +
WABAG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends0/6

WABAG 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₹340.10
52 Week High₹174.80
52 Week Low₹404.00
Beta1.52
1 Month Change-0.31%
3 Month Change-2.24%
1 Year Change78.48%
3 Year Change15.60%
5 Year Change-38.10%
Change since IPO0.92%

Recent News & Updates

Aug 18
Shareholders Will Probably Hold Off On Increasing VA Tech Wabag Limited's (NSE:WABAG) CEO Compensation For The Time Being

Shareholders Will Probably Hold Off On Increasing VA Tech Wabag Limited's (NSE:WABAG) CEO Compensation For The Time Being

In the past three years, shareholders of VA Tech Wabag Limited ( NSE:WABAG ) have seen a loss on their investment. Per...

Jun 16
Is Now An Opportune Moment To Examine VA Tech Wabag Limited (NSE:WABAG)?

Is Now An Opportune Moment To Examine VA Tech Wabag Limited (NSE:WABAG)?

While VA Tech Wabag Limited ( NSE:WABAG ) might not be the most widely known stock at the moment, it led the NSEI...

Shareholder Returns

WABAGIN Water UtilitiesIN Market
7D-3.1%1.9%0.8%
1Y78.5%2.3%67.5%

Return vs Industry: WABAG exceeded the Indian Water Utilities industry which returned 2.3% over the past year.

Return vs Market: WABAG exceeded the Indian Market which returned 67.5% over the past year.

Price Volatility

Is WABAG's price volatile compared to industry and market?
WABAG volatility
WABAG Beta1.52
Industry Beta0.44
Market Beta1

Stable Share Price: WABAG is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WABAG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19952,000Rajiv 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 reuse, desalination, wastewater treatment, water reclamation, 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, 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₹21.48b
Earnings (TTM)₹1.20b
Revenue (TTM)₹30.62b

17.6x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WABAG income statement (TTM)
Revenue₹30.62b
Cost of Revenue₹26.34b
Gross Profit₹4.27b
Expenses₹3.07b
Earnings₹1.20b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)19.33
Gross Margin13.96%
Net Profit Margin3.93%
Debt/Equity Ratio25.7%

How did WABAG perform over the long term?

See historical performance and comparison

Valuation

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

17.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WABAG (₹340.1) is trading above our estimate of fair value (₹100.64)

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


Price To Earnings Ratio

PE vs Industry: WABAG is poor value based on its PE Ratio (17.6x) compared to the Asian Water Utilities industry average (13.8x).

PE vs Market: WABAG is good value based on its PE Ratio (17.6x) compared to the Indian market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: WABAG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: WABAG is overvalued based on its PB Ratio (1.5x) compared to the XA Water Utilities industry average (1.3x).


Future Growth

How is VA Tech Wabag forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WABAG's forecast earnings growth (29.4% per year) is above the savings rate (6.8%).

Earnings vs Market: WABAG's earnings (29.4% per year) are forecast to grow faster than the Indian market (18.3% per year).

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

Revenue vs Market: WABAG's revenue (13.5% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: WABAG's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WABAG's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WABAG has high quality earnings.

Growing Profit Margin: WABAG's current net profit margins (3.9%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: WABAG's earnings have declined by 3.4% per year over the past 5 years.

Accelerating Growth: WABAG's earnings growth over the past year (28.7%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: WABAG earnings growth over the past year (28.7%) exceeded the Water Utilities industry 13.8%.


Return on Equity

High ROE: WABAG's Return on Equity (7.9%) is considered low.


Financial Health

How is VA Tech Wabag's financial position?


Financial Position Analysis

Short Term Liabilities: WABAG's short term assets (₹33.0B) exceed its short term liabilities (₹23.7B).

Long Term Liabilities: WABAG's short term assets (₹33.0B) exceed its long term liabilities (₹4.0B).


Debt to Equity History and Analysis

Debt Level: WABAG's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: WABAG's debt to equity ratio has reduced from 39% to 25.7% over the past 5 years.

Debt Coverage: WABAG's debt is well covered by operating cash flow (37.8%).

Interest Coverage: WABAG's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Dividend

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

0.89%

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?

5.8yrs

Average management tenure


CEO

Rajiv Mittal (61 yo)

5.92yrs

Tenure

₹14,695,000

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 ($USD199.09K) is about average for companies of similar size in the Indian market ($USD204.71K).

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 (5.8 years average tenure).


Board Members

Experienced Board: WABAG's board of directors are not considered experienced ( 1.2 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

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 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: ₹21.484b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 12:04
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.