VA Tech Wabag shares surge as much as 5% after bagging ₹2,332 crore Saudi order

VA Tech Wabag on Thursday, July 24, said it has received a letter of award worth ₹2,332 crore from Saudi Arabia for a 300 million litre per day (MLD) mega sea water desalination plant in Yanbu.The project includes the scope of design, engineering, supply, construction, and commissioning of the plant, which will be developed on a greenfield site on the west coast of Saudi Arabia, the company said.
It said it has received the letter of award from the Saudi Water Authority and the contracting formalities are set to commence. The effective date for commencement of execution will be announced after the contract is signed, it added.
The project is to be completed 30 months from the effective date.”We are immensely proud to have emerged successful in this prestigious project not just once, but twice,” Rohan Mittal, head of strategy and business growth for GCC, said.

In December last year,

the VA Tech Wabag had announced the cancellation of its ₹2,700 crore order for a 300 MLD mega sea water desalination plant in Saudi Arabia.The Saudi Water Authority had informed all tender participants on December 16, 2024 about the cancellation due to internal administrative procedures.

Earlier this week, brokerage firm Motilal Oswal initiated coverage on VA Tech Wabag with a “buy” rating and a target price of ₹1,900 per share.

The brokerage has valued the stock at 26 times its estimates for the financial year 2027 price-to-earnings multiple, which is at a premium to the historical average of 8x on an improved outlook.

In a bull case scenario, the brokerage set ₹2,564 per share as its price target.

Shares of VA Tech Wabag gained 4.9% to hit an intraday high of 1,672.1 apiece on Thursday, July 24. The stock was up 3.09% at 9.35 am. It has gained 10.7% in the past month.

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