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Last Updated on: 05 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Va Tech Wabag Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 4, 2024, 9:13 pm

Market Cap 11,552 Cr.
Current Price 1,861
High / Low1,907/575
Stock P/E44.4
Book Value 316
Dividend Yield0.00 %
ROCE19.8 %
ROE13.8 %
Face Value 2.00
PEG Ratio2.49

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Va Tech Wabag Ltd

Competitors of Va Tech Wabag Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Incon Engineers Ltd 7.26 Cr. 16.824.8/12.5 0.440.00 %72.7 %162 % 10.0
Hittco Tools Ltd 8.62 Cr. 14.016.0/9.53 4.590.00 %7.27 %5.66 % 10.0
Harshil Agrotech Ltd 480 Cr. 9.4413.7/0.2980.6 1.200.00 %16.4 %13.5 % 1.00
Gujarat Toolroom Ltd 230 Cr. 14.345.9/10.81.95 14.86.97 %179 %170 % 1.00
GTV Engineering Ltd 158 Cr. 506640/39524.2 1250.00 %12.7 %13.5 % 10.0
Industry Average4,628.74 Cr555.7344.97117.410.38%29.61%26.97%6.35

All Competitor Stocks of Va Tech Wabag Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales999658684745892632750652927553665704934
Expenses923630627670820609697560818497579606819
Operating Profit7628577672235492108568698116
OPM %8%4%8%10%8%4%7%14%12%10%13%14%12%
Other Income31435113525-14-232261649
Interest22202222241617161616171722
Depreciation3332322222222
Profit before tax5520355657396060-142648383100
Tax %20%28%26%19%19%24%22%22%-21%22%28%25%22%
Net Profit4415264546304647-11250606378
EPS in Rs7.482.454.227.107.444.857.507.58-17.868.049.6810.1111.64

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,6192,2392,4352,5083,2083,4572,7812,5572,8342,9792,9602,8562,930
Expenses1,4652,0502,2252,2932,9693,1652,5872,3402,6162,7452,6432,4902,551
Operating Profit154189210216239292194217219234318366379
OPM %10%8%9%9%7%8%7%8%8%8%11%13%13%
Other Income1317781188401432-2264339
Interest212539465358751099088667173
Depreciation11151120191817151210989
Profit before tax13516616715717922411013213016817330336
Tax %34%32%34%43%37%34%19%37%23%22%35%24%
Net Profit9011411290112147898410113211250256
EPS in Rs17.0121.3120.2816.2818.7624.0619.2016.6317.7121.212.0939.4940.27
Dividend Payout %21%19%20%25%21%17%21%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)26.67%-1.75%-19.64%24.44%31.25%-39.46%-5.62%20.24%30.69%-91.67%2172.73%
Change in YoY Net Profit Growth (%)0.00%-28.42%-17.89%44.09%6.81%-70.71%33.84%25.86%10.45%-122.36%2264.39%

Va Tech Wabag Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:1%
3 Years:0%
TTM:6%
Compounded Profit Growth
10 Years:8%
5 Years:21%
3 Years:33%
TTM:-13%
Stock Price CAGR
10 Years:9%
5 Years:62%
3 Years:77%
1 Year:205%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:9%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital551111111111111212121212
Reserves7108368929099821,1181,0581,1641,3971,5271,5621,8061,954
Borrowings82158181388314482613520358436219289428
Other Liabilities1,0931,4331,4811,6102,0412,1072,0832,3282,3892,0242,2942,4672,281
Total Liabilities1,8902,4322,5652,9183,3483,7173,7664,0224,1573,9994,0884,5744,676
Fixed Assets51119191175174172149868680757267
CWIP486912000000000
Investments32338322258202438466770
Other Assets1,7882,2212,3352,7083,1513,5403,6093,9154,0463,8823,9674,4354,538
Total Assets1,8902,4322,5652,9183,3483,7173,7664,0224,1573,9994,0884,5744,676

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +821126-2176-216-762451351285134
Cash from Investing Activity +-38-74-99122523951-394156
Cash from Financing Activity +-65482182-10010649-135-8645-24044
Net Cash Flow-2186-9186-42-106-181145117-114233

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow72.0031.0029.00-172.00-75.00-190.00-419.00-303.00-139.00-202.0099.0077.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days250226222241242138177227174162186254
Inventory Days
Days Payable
Cash Conversion Cycle250226222241242138177227174162186254
Working Capital Days84647677681021281251028681135
ROCE %20%21%20%17%18%19%11%14%13%13%20%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters21.70%21.70%21.70%21.70%21.70%21.70%19.12%19.12%19.12%19.12%19.12%19.12%
FIIs14.61%15.91%17.22%18.04%16.17%15.35%14.42%15.94%16.57%16.67%15.64%13.11%
DIIs3.26%3.78%3.62%3.62%3.62%3.27%3.25%3.45%3.25%3.54%3.52%5.85%
Public60.43%58.61%57.46%56.64%58.51%59.68%63.20%61.46%61.07%60.65%61.70%61.91%
No. of Shareholders81,54292,53295,36199,5531,08,9541,13,4111,10,8531,02,06199,44994,01498,50698,026

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Value Fund920,2925.5662.07798,1632024-11-3015.3%
SBI Long Term Equity Fund798,1630.2753.83798,1632024-11-300%
LIC MF Flexi Cap Fund200,8361.4413.55798,1632024-11-30-74.84%
ICICI Prudential Infrastructure Fund195,2950.2913.17798,1632024-11-30-75.53%
ICICI Prudential Exports and Services Fund141,4830.789.54798,1632024-11-30-82.27%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)39.492.0721.2118.8316.64
Diluted EPS (Rs.)39.492.0721.2118.8316.64
Cash EPS (Rs.)43.271.6923.3717.2317.29
Book Value[Excl.RevalReserv]/Share (Rs.)294.19253.16245.32224.49214.29
Book Value[Incl.RevalReserv]/Share (Rs.)294.19253.16245.32224.49214.29
Revenue From Operations / Share (Rs.)460.71475.96478.99455.71467.49
PBDIT / Share (Rs.)67.6059.7143.3136.4946.10
PBIT / Share (Rs.)66.2458.3041.6834.5443.28
PBT / Share (Rs.)54.771.2227.5820.0223.35
Net Profit / Share (Rs.)41.920.2721.7415.2814.48
NP After MI And SOA / Share (Rs.)39.612.0721.2117.7016.63
PBDIT Margin (%)14.6712.549.048.009.86
PBIT Margin (%)14.3712.248.707.579.25
PBT Margin (%)11.880.255.754.394.99
Net Profit Margin (%)9.090.054.533.353.09
NP After MI And SOA Margin (%)8.590.434.423.883.55
Return on Networth / Equity (%)13.500.818.577.817.74
Return on Capital Employeed (%)16.9720.2714.1411.9616.45
Return On Assets (%)5.360.313.292.642.26
Long Term Debt / Equity (X)0.100.030.060.090.02
Total Debt / Equity (X)0.150.130.270.210.41
Asset Turnover Ratio (%)0.650.650.590.510.51
Current Ratio (X)1.681.331.371.401.29
Quick Ratio (X)1.671.321.351.381.28
Inventory Turnover Ratio (X)0.000.000.0083.17114.92
Interest Coverage Ratio (X)5.895.643.072.512.31
Interest Coverage Ratio (Post Tax) (X)4.665.422.542.051.73
Enterprise Value (Cr.)4505.562127.951731.041479.52612.30
EV / Net Operating Revenue (X)1.580.710.580.520.23
EV / EBITDA (X)10.755.736.436.522.43
MarketCap / Net Operating Revenue (X)1.660.730.580.550.17
Price / BV (X)2.601.391.131.110.38
Price / Net Operating Revenue (X)1.660.730.580.550.17
EarningsYield0.050.010.070.070.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Va Tech Wabag Ltd as of December 5, 2024 is: 1,974.92

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 5, 2024, Va Tech Wabag Ltd is Undervalued by 6.12% compared to the current share price 1,861.00

Intrinsic Value of Va Tech Wabag Ltd as of December 5, 2024 is: 2,327.57

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 5, 2024, Va Tech Wabag Ltd is Undervalued by 25.07% compared to the current share price 1,861.00

Last 5 Year EPS CAGR: 17.86%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.17%, which is a positive sign.
  2. The company has higher reserves (1,224.23 cr) compared to borrowings (343.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.08 cr) and profit (173.15 cr) over the years.
  1. The stock has a high average Working Capital Days of 94.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 208.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Va Tech Wabag Ltd:
    1. Net Profit Margin: 9.09%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.97% (Industry Average ROCE: 28.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.5% (Industry Average ROE: 23.46%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.66
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.67
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 44.4 (Industry average Stock P/E: 32.26)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Va Tech Wabag Ltd. is a Public Limited Listed company incorporated on 17/02/1995 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L45205TN1995PLC030231 and registration number is 030231. Currently Company is involved in the business activities of Sewerage. Company’s Total Operating Revenue is Rs. 2142.61 Cr. and Equity Capital is Rs. 12.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Water Supply & ManagementWabag House , Chennai (Madras) Tamil Nadu 600117companysecretary@wabag.in
http://www.wabag.com
Management
NamePosition Held
Mr. Rajiv MittalChairman & Managing Director
Mr. S VaradarajanWhole Time Director
Mr. Milin MehtaIndependent Director
Mrs. Vijaya SampathIndependent Director
Mr. Amit GoelaNon Exe.Non Ind.Director
Mr. Ranjit SinghIndependent Director

FAQ

What is the latest intrinsic value of Va Tech Wabag Ltd?

The latest intrinsic value of Va Tech Wabag Ltd as on 05 December 2024 is ₹1974.92, which is 6.12% higher than the current market price of ₹1,861.00. The stock has a market capitalization of 11,552 Cr. and recorded a high/low of ₹1,907/575 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,954 Cr and total liabilities of ₹4,676 Cr.

What is the Market Cap of Va Tech Wabag Ltd?

The Market Cap of Va Tech Wabag Ltd is 11,552 Cr..

What is the current Stock Price of Va Tech Wabag Ltd as on 05 December 2024?

The current stock price of Va Tech Wabag Ltd as on 05 December 2024 is 1,861.

What is the High / Low of Va Tech Wabag Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Va Tech Wabag Ltd stocks is 1,907/575.

What is the Stock P/E of Va Tech Wabag Ltd?

The Stock P/E of Va Tech Wabag Ltd is 44.4.

What is the Book Value of Va Tech Wabag Ltd?

The Book Value of Va Tech Wabag Ltd is 316.

What is the Dividend Yield of Va Tech Wabag Ltd?

The Dividend Yield of Va Tech Wabag Ltd is 0.00 %.

What is the ROCE of Va Tech Wabag Ltd?

The ROCE of Va Tech Wabag Ltd is 19.8 %.

What is the ROE of Va Tech Wabag Ltd?

The ROE of Va Tech Wabag Ltd is 13.8 %.

What is the Face Value of Va Tech Wabag Ltd?

The Face Value of Va Tech Wabag Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Va Tech Wabag Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE