VA Tech Wabag Eyes Breakout Above ₹1,526: SEBI Analyst Deepak Pal
Synopsis
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.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.