Rekha Jhunjhunwala portfolio stock up 99% from June low; zooms 270% in 1 yr

Rekha Jhunjhunwala Portfolio: VA Tech Wabag hit new high of Rs 1,634, gaining 4% on the BSE in Monday's intra-day trade

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VA Tech Wabag (WABAG) share price hit a new high of Rs 1,634 as it gained 4 per cent on the BSE in Monday's intraday trade. The shares extended their past two days' upward move after the company secured 'large' repeat orders from Reliance Industries (RIL).

In the past three trading days, VA Tech Wabag shares have rallied 11 per cent. The company said the 'Large' order shall mean an order value in the range of Rs 300 to Rs 500 crore.

On Thursday, October 10, WABAG, a leading pure-play water technology Indian Multinational Group, announced that the company has secured large repeat orders from RIL towards water treatment systems for Dahej and Nagothane facilities.

WABAG is a complete life-cycle partner for building water and wastewater infrastructure covering design, engineering, supply, construction, installation, start up and long-term operational management across various business models.

Rekha Jhunjhunwala portfolio stock

The stock price of WABAG has nearly doubled, surging 99 per cent, from its June month low of Rs 820. In the last one year, Wabag shares have zoomed 270 per cent as compared to 23.8 per cent rally in the BSE Sensex.

Rekha Jhunjhunwala, wife of late ace investor Rakesh Jhunjhunwala, owned 5 million equity shares or 8.04 per cent stake in WABAG at the end of June 2024 quarter. The company is yet to declare its September-quarter shareholding pattern data. Currently, her stake is valued around Rs 816 crore.

VA Tech Wabag order book

In August, WABAG had secured a repeat order worth about Rs 415 crore from Chennai Metropolitan Water Supply and Sewage Board (CMWSSB) towards operation & maintenance (O&M) of 110 MLD SWRO Desalination Plant at Nemmeli in Chennai for a period of 7 years.

WABAG has maintained a very high quality order book of around Rs 11,000 crore with a healthy mix of 55 per cent engineering, procurement, and construction (EPC) and 45 per cent O&M, giving the company confidence and visibility for future revenue.

"General elections in India are behind us, and recent budget announcements have given emphasis on promoting water supply, sewage treatment, and solid waste management projects and services for 100 large cities through bankable projects in partnership with multilateral development banks. This will augment demand for freshwater and other water infrastructures. Thus, we expect the Indian market to pick up further pace and few queue orders are expected to be announced very soon," the management had said in its June quarter results conference call.

WABAG anticipates order book growth in Tertiary Treatment, Recycle & Reuse, Zero Liquid Discharge plants and Desalination, accounting for a high strike rate. A growing focus on DBO (design, build, operate) and O&M projects could translate into an efficient mix of revenue growth and predictable annuity incomes. Growing water management opportunities out of the green hydrogen and semiconductor spaces could widen the opportunity canvas. Industrial activities are slated for growth in various sectors, which is going to create opportunities for water projects, the company said in its FY24 annual report.

"There is a growing demand for technically superior Water management specialists following an increased demand for water on the back of a fastest growing Indian economy and evolving lifestyle standards. There is a need for enhanced urgency to make water available to a wider population which is reflected in the launch and implementation of long-term policies like ‘the Jal Jeevan Mission in India’, which provides a multi-year visibility for the sector and focused companies like ours," the management said.