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VA Tech Wabag Limited
(WABAG)
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Rating:69Neutral
Price Target:
₹2,172.00
▲(68.97% Upside)
Action:Downgraded
Date:06/20/26
The score is driven primarily by improving growth/profitability and a notably strong, low-leverage balance sheet, partially offset by volatile cash flow trends. Technically, momentum is strong but signals are overbought, and valuation is a headwind due to the high P/E and very low dividend yield.
Positive Factors
Low leverage / strong balance sheet
Sustained very low debt-to-equity (~0.09) gives the company financial flexibility to bid large EPC projects, absorb working-capital swings and invest in O&M capacity without heavy refinancing. This durable balance-sheet strength lowers solvency risk and supports strategic growth over months.
Negative Factors
Volatile operating and free cash flow
Uneven OCF and a material FY2026 FCF decline point to working-capital and timing sensitivity typical for EPC firms. Such volatility can constrain self-funding for capex, increase reliance on receivable financing, and amplify liquidity pressure during large project ramps or delayed milestone payments.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Sustained very low debt-to-equity (~0.09) gives the company financial flexibility to bid large EPC projects, absorb working-capital swings and invest in O&M capacity without heavy refinancing. This durable balance-sheet strength lowers solvency risk and supports strategic growth over months.
Read all positive factors
VA Tech Wabag Limited (WABAG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹131.56B
Dividend Yield0.31%
Average Volume (3M)11.30K
Price to Earnings (P/E)33.6
Beta (1Y)1.58
Revenue Growth19.74%
EPS Growth25.16%
CountryIN
Employees1,600
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)54.33
Shares Outstanding62,315,662
10 Day Avg. Volume11,829
30 Day Avg. Volume11,305
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)2.81
Price to Sales (P/S)1.83
P/FCF Ratio31.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)73
Revenue Forecast (FY)₹45.45B
VA Tech Wabag Limited Business Overview & Revenue Model
Company Description
VA Tech Wabag Limited, an Indian-headquartered company established in 1995, delivers comprehensive water treatment solutions on a global scale through its subsidiaries. The firm designs, supplies, constructs, and manages facilities for drinking wa...
How the Company Makes Money
WABAG primarily makes money by executing water and wastewater treatment projects and by operating and maintaining treatment assets for customers. A major revenue stream comes from EPC/turnkey contracts where WABAG is paid for designing, engineerin...
VA Tech Wabag Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.36B | 39.44B | 32.94B | 28.56B | 29.60B | 29.79B |
| Gross Profit | 7.09B | 6.34B | 4.61B | 4.58B | 6.91B | 4.17B |
| EBITDA | 4.92B | 4.77B | 4.22B | 4.19B | 821.90M | 2.69B |
| Net Income | 3.20B | 3.71B | 2.95B | 2.46B | 130.00M | 1.32B |
Balance Sheet | ||||||
| Total Assets | 54.62B | 61.22B | 52.67B | 45.74B | 40.89B | 40.02B |
| Cash, Cash Equivalents and Short-Term Investments | 8.32B | 11.12B | 9.45B | 5.06B | 2.69B | 3.37B |
| Total Debt | 2.40B | 2.28B | 3.62B | 2.89B | 2.19B | 4.36B |
| Total Liabilities | 31.33B | 35.49B | 31.22B | 27.51B | 25.15B | 24.76B |
| Stockholders Equity | 23.23B | 25.68B | 21.40B | 18.19B | 15.75B | 15.39B |
Cash Flow | ||||||
| Free Cash Flow | -516.00M | 2.25B | 3.51B | 1.22B | 798.00M | 61.20M |
| Operating Cash Flow | -486.00M | 2.31B | 3.55B | 1.33B | 849.80M | 116.40M |
| Investing Cash Flow | 288.00M | -670.00M | -1.21B | 841.00M | 157.80M | -339.70M |
| Financing Cash Flow | -1.62B | -1.62B | 340.00M | 436.00M | -2.40B | 446.40M |
VA Tech Wabag Limited Technical Analysis
Positive
1285.45
Price Trends
1559.81
Positive
1398.33
Positive
1383.30
Positive
Market Momentum
161.09
Negative
86.21
Negative
92.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WABAG, the sentiment is Positive. The current price of 1285.45 is below the 20-day moving average (MA) of 1722.93, below the 50-day MA of 1559.81, and below the 200-day MA of 1383.30, indicating a bullish trend. The MACD of 161.09 indicates Negative momentum. The RSI at 86.21 is Negative, neither overbought nor oversold. The STOCH value of 92.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WABAG.
VA Tech Wabag Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹131.56B | 33.59 | ― | 0.31% | 19.74% | 25.16% | |
69 Neutral | ₹160.17B | 41.76 | ― | 0.43% | 1.02% | -10.02% | |
65 Neutral | ₹38.46B | 21.04 | ― | ― | 8.22% | -10.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ₹71.66B | 27.97 | ― | 0.14% | 7.21% | -39.15% | |
54 Neutral | ₹58.29B | 34.22 | ― | 0.40% | 7.52% | -16.28% | |
45 Neutral | ₹25.51B | -108.31 | ― | ― | 10.73% | -166.63% |
* Industrials Sector Average
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VA Tech Wabag Limited Corporate Events
VA Tech Wabag to Appeal GST Order Upholding ₹6.47 Crore Tax Demand
Jun 19, 2026
VA Tech Wabag has disclosed that it received an order from the Principal Commissioner of Central Tax, Bengaluru East, rejecting its rectification application related to a GST assessment for FY 2019-20 under Section 73 of the CGST Act. The order up...
VA Tech Wabag boosts equity capital with ESOP share allotment
Jun 19, 2026
VA Tech Wabag has allotted 39,113 equity shares of INR 2 each to employees who exercised options under its WABAG Centenary Stock Option Scheme 2023. The new shares, issued at an exercise price of INR 513, increase the company’s paid-up equit...
VA Tech Wabag GST Demand Slashed After Favourable Rectification Order
Jun 19, 2026
VA Tech Wabag has received a favourable rectification order from the Uttar Pradesh GST authorities regarding an earlier demand alleging excess input tax credit claims for FY 2019-20. The original GST demand of INR 43.73 lakh has been quashed and r...
Wabag Wins Mega SWRO Desalination Contract in Kuwait, Enters New GCC Market
Jun 19, 2026
VA Tech Wabag has won a design-build-operate contract from Kuwait’s Ministry of Electricity, Water and Renewable Energy for the Doha SWRO Desalination Plant – Stage II, marking its first project in Kuwait and strengthening its foothold...
VA Tech Wabag Wins Delhi Contract for 17 MGD Wastewater Treatment Plant
May 22, 2026
VA Tech Wabag has secured a medium-sized design, build and operate contract from the Delhi Jal Board for a 17 MGD wastewater treatment plant at Mitraon in Delhi, including sludge dewatering facilities, pumping stations and associated piping. The p...
VA Tech Wabag Clears FY26 Results, Proposes 250% Final Dividend
May 21, 2026
VA Tech Wabag’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, with the statutory auditors issuing unmodified opinions. The results, along with the accompanying...
Wabag Wins EIB-Funded Wastewater Project in Georgia, Enters CIS Market
Mar 20, 2026
VA Tech Wabag has won a large international consortium order from United Water Supply Company of Georgia to build a 19 million litres per day wastewater treatment plant in Kutaisi, funded by the European Investment Bank. The project, designed for ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.