NSEI:WABAG

Stock Analysis Report

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.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

3.1%

NSEI:WABAG

3.1%

IN Water Utilities

-0.7%

IN Market


1 Year Return

-25.3%

NSEI:WABAG

-25.3%

IN Water Utilities

-12.1%

IN Market

WABAG underperformed the Water Utilities industry which returned 7.4% over the past year.

WABAG underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

WABAGIndustryMarket
7 Day3.1%3.1%-0.7%
30 Day-4.2%1.0%-5.7%
90 Day5.9%5.9%-4.3%
1 Year-25.3%-25.3%-25.3%-25.3%-10.4%-12.1%
3 Year-49.1%-50.0%-49.1%-50.0%19.0%13.0%
5 Year-57.4%-58.6%-57.4%-58.6%37.9%25.2%

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 based on future cash flows and its price relative to the stock market?

16.74x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

VA Tech Wabag's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

VA Tech Wabag's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

VA Tech Wabag is overvalued based on earnings compared to the Asia Water Utilities industry average.

VA Tech Wabag is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

VA Tech Wabag is good value based on expected growth next year.


Price Based on Value of Assets

VA Tech Wabag is overvalued based on assets compared to the Asia Water Utilities industry average.


Next Steps

Future Growth

How is VA Tech Wabag expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

35.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

VA Tech Wabag's revenue is expected to grow significantly at over 20% yearly.

VA Tech Wabag's earnings are expected to grow significantly at over 20% yearly.

VA Tech Wabag's revenue growth is expected to exceed the India market average.

VA Tech Wabag's earnings growth is expected to exceed the India market average.

VA Tech Wabag's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if VA Tech Wabag will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

3.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

VA Tech Wabag's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

VA Tech Wabag's 1-year earnings growth is negative, it can't be compared to the 5-year average.

VA Tech Wabag's 1-year earnings growth is negative, it can't be compared to the Asia Water Utilities industry average.


Return on Equity

VA Tech Wabag has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

VA Tech Wabag used its assets less efficiently than the Asia Water Utilities industry average last year based on Return on Assets.


Return on Capital Employed

VA Tech Wabag's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is VA Tech Wabag's financial position?


Financial Position Analysis

VA Tech Wabag is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

VA Tech Wabag's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

VA Tech Wabag's level of debt (56.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (18.9% vs 56.5% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5x debt.


Next Steps

Dividend

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

1.57%

Expected Dividend Yield


Dividend Yield and Payments Analysis

VA Tech Wabag's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

VA Tech Wabag's dividend is below the markets top 25% of dividend payers in India (2.52%).

Whilst dividend payments have been stable, VA Tech Wabag has been paying a dividend for less than 10 years.

Dividend payments have increased, but VA Tech Wabag only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of VA Tech Wabag's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Rajiv Mittal (59yo)

3.8yrs

Tenure

₹24,749,000

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 simce October 1, 2015 and Head of SBU MBG. Mr. Mittal h ...


CEO Compensation Analysis

Rajiv's remuneration is about average for companies of similar size in India.

Rajiv's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

57yo

Average Age

The tenure for the VA Tech Wabag management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

57yo

Average Age

The tenure for the VA Tech Wabag board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rajiv Mittal (59yo)

    Group CEO

    • Tenure: 3.8yrs
    • Compensation: 24.75m
  • Shivnarayan Saraf (67yo)

    Head of Operations and Executive Director of Management Board

    • Compensation: 3.38m
  • Pankaj Sachdeva (56yo)

    Chief Executive Officer of India Cluster

    • Tenure: 2.8yrs
    • Compensation: 19.50m
  • Subramanian Varadarajan (54yo)

    Chief Growth Officer & Whole Time Director

    • Tenure: 3.7yrs
    • Compensation: 11.38m
  • R. Swaminathan

    Company Secretary & Compliance Officer

    • Tenure: 2.5yrs
    • Compensation: 3.58m
  • Krishna Gokhale (63yo)

    President of International Engineering Centre

    • Tenure: 9.3yrs
    • Compensation: 3.65m
  • Rajneesh Chopra (56yo)

    Global Head of Business Development

    • Tenure: 3.7yrs
    • Compensation: 8.04m
  • Venkatasamy V. (59yo)

    Chief Information Officer

  • Patrick Andrade (57yo)

    Chief Operating Officer for India Cluster

    • Tenure: 3.7yrs
    • Compensation: 12.48m
  • Sandeep Agrawal (48yo)

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Sumit Chandwani (52yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: 1.50m
  • Bhagwan Narang (74yo)

    Independent Chairman

    • Tenure: 9.9yrs
    • Compensation: 2.00m
  • Subramanian Varadarajan (54yo)

    Chief Growth Officer & Whole Time Director

    • Tenure: 4.2yrs
    • Compensation: 11.38m
  • Rajiv Mittal (59yo)

    Group CEO

    • Compensation: 24.75m
  • Revathi Kasturi (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: 1.50m
  • Malay Mukherjee

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: 1.50m
  • Thillayambur Gopal

    Chief Manager of Public Relations

  • Milin Mehta (55yo)

    Additional Independent Director

    • Tenure: 0.3yrs

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: ₹15.849b
  • Shares outstanding: 54.69m
  • Website: Click here

Number of Employees


Location

  • VA Tech Wabag Limited
  • WABAG House
  • No.17, 200 Feet Thoraipakkam-Pallavaram Main 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

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 Analysis2019/08/17 12:54
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.