A positive earnings surprise could set the stage for a rally toward ₹2,000, according to the analyst.
VA Tech Wabag is on the analyst’s radar. While its technical indicators show a neutral-to-bearish bias, its fundamentals flag a more positive story.
SEBI-registered analyst Deepak Pal notes that on its weekly charts, moving averages signal caution as it shows a combination of “strong sell” across multiple time frames. But the recent chart action suggests a descending trendline breakout, and a potentially bullish setup if the stock sustained above ₹1,526.
He identified resistance near ₹1,644–₹1,736, with support levels ranging from ₹1,412 to ₹1,272.
Fundamental Overview
VA Tech Wabag ended FY25 with an order book growth of 21% at ₹13,667 crore, of which EPC constitutes 57%, with a growing O&M segment (39%). Its revenue grew 15% to ₹3,294 crore, with stable EBITDA margins (12.8%–13%) and improved profit at ₹295 crore.
The company is net cash positive (₹706 crore) and targets 15–20% revenue CAGR over the next 3–5 years.
Pal noted that its core business strengths lie in water and wastewater treatment, with a high-margin, asset-light EPC and O&M model and diversified exposure across key global regions.
Motilal Oswal values the stock at ₹1,900, citing strong free cash flow and execution clarity.
What Should Investors Do?
Pal concluded that VA Tech Wabag combines structural strength and financial stability with a robust growth outlook. His outlook remains constructive, especially if the stock sustains above key resistance (₹1,526) as its solid orderbook growth, strong cash flows boost its long-term potential.
He added that a positive earnings surprise on Tuesday (Aug 12) could catalyse a move toward the ₹1,900–₹2,000 range over the medium term.
However, Pal cautioned that one must not trade or invest based solely on short-term movements. Market volatility can lead to rapid changes in trend.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment turned ‘bullish’ a day ago on this counter from ‘neutral’.
VA Tech Wabag shares have fallen 7% so far this year.
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