VA Tech Wabag down nearly 8% in two days; trades below 50-day SMA

VA Tech Wabag tumbled 5.05% to Rs 325.90, extending losses for second day.

The stock has lost 7.69% in two sessions, from its recent closing high of Rs 353.05 recorded on 9 March 2023.

On the technical front, the stock's daily RSI (relative strength index) stood at 35.720. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On daily chart, the stock is trading above its 100-day and 200-day simple moving average (SMA) placed at 324.47 and 324.99, respectively. It is, however, trading below its 50-day SMA positioned at 333.95.

In the past six months, the stock has risen by 17.56% while the benchmark Sensex has lost 3.72% during the same period.

On Saturday, VA Tech Wabag announced the sale of 'VA Tech Wabag Brno spol. S.r.o.', its subsidiary in Czech Republic, to an engineering major based in Czech Republic, the VCL Group. The sale has been done for a cash consideration of 1 million euros.

The company said that the move is a part of the business strategy to optimize the Group's structure and in line with its strategic focus to reduce our exposure to European Geographies.

Va Tech Wabag principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.

The company's consolidated net profit rose 6.75% to Rs 47.14 crore despite a 12.60% fall in sales to Rs 651.56 crore in Q3 FY23 over Q3 FY22.

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