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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Va Tech Wabag Ltd

About the Company - Va Tech Wabag Ltd

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
Engineering - GeneralWabag 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. Amit GoelaNon Independent Director
Mr. Milin MehtaIndependent Director
Mrs. Vijaya SampathIndependent Director
Mr. Ranjit SinghIndependent Director

Va Tech Wabag Ltd. Share Price Update

Share PriceValue
Today₹745.00
Previous Day₹738.95

Basic Stock Data of Va Tech Wabag Ltd

Market Cap 4,661 Cr.
Current Price 749
High / Low751/305
Stock P/E15.4
Book Value 270
Dividend Yield0.00 %
ROCE19.5 %
ROE3.11 %
Face Value 2.00

Data Source: screener.in

Competitors of Va Tech Wabag Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mazda Ltd 574 Cr. 1,4341,661/59517.5 4840.99 %21.0 %15.4 % 10.0
Mold-Tek Technologies Ltd 643 Cr. 226399/21320.4 38.61.51 %41.7 %33.2 % 2.00
A2Z Infra Engineering Ltd 225 Cr. 12.815.2/5.10 2.010.00 %6.57 %15.7 % 10.0
Somi Conveyor Beltings Ltd 118 Cr. 100117/32.225.5 58.10.00 %7.92 %5.31 % 10.0
BGR Energy Systems Ltd 628 Cr. 87.0120/44.2 14.70.00 %11.4 %145 % 10.0
Industry Average437.6 Cr85.3612.68119.480.5%17.72%42.92%8.4

Va Tech Wabag Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales608796999658684745892632750652927553665
Expenses565726923630627670820609697560818497579
Operating Profit437076285776722354921085686
OPM %7%9%8%4%8%10%8%4%7%14%12%10%13%
Other Income2631435113525-14-2322616
Interest24232220222224161716161617
Depreciation4333323222222
Profit before tax18505520355657396060-1426483
Tax %24%24%20%28%26%19%19%24%22%22%21%22%28%
Net Profit14384415264546304647-1125060
EPS in Rs2.686.727.482.454.227.107.444.857.507.58-17.868.049.68

Va Tech Wabag Ltd Quarterly Chart

Va Tech Wabag Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4441,6192,2392,4352,5083,2083,4572,7812,5572,8342,9792,9602,796
Expenses1,3131,4652,0502,2252,2932,9693,1652,5872,3402,6162,7452,6432,454
Operating Profit130154189210216239292194217219234318342
OPM %9%10%8%9%9%7%8%7%8%8%8%11%12%
Other Income151317781188401432-226-204
Interest252125394653587510990886665
Depreciation91115112019181715121098
Profit before tax1111351661671571792241101321301681765
Tax %34%34%32%34%43%37%34%19%37%23%22%35%
Net Profit74901141129011214789841011321144
EPS in Rs13.9217.0121.3120.2816.2818.7624.0619.2016.6317.7121.212.077.44
Dividend Payout %22%21%19%20%25%21%17%21%0%0%0%0%

Va Tech Wabag Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)21.62%26.67%-1.75%-19.64%24.44%31.25%-39.46%-5.62%20.24%30.69%-91.67%
Change in YoY Net Profit Growth (%)0.00%5.05%-28.42%-17.89%44.09%6.81%-70.71%33.84%25.86%10.45%-122.36%

Va Tech Wabag Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:-3%
3 Years:5%
TTM:-3%
Compounded Profit Growth
10 Years:-6%
5 Years:-18%
3 Years:-17%
TTM:66%
Stock Price CAGR
10 Years:9%
5 Years:21%
3 Years:43%
1 Year:120%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:6%
Last Year:3%

Va Tech Wabag Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital55511111111111112121212
Reserves6377108368929099821,1181,0581,1641,3971,5271,5621,666
Borrowings12582158181388314482613520358436219283
Other Liabilities1,0071,0931,4331,4811,6102,0412,1072,0832,3282,3892,0242,2942,167
Total Liabilities1,7741,8902,4322,5652,9183,3483,7173,7664,0224,1573,9994,0884,128
Fixed Assets51511191911751741721498686807568
CWIP1848691200000000
Investments4323383222582024384635
Other Assets1,7021,7882,2212,3352,7083,1513,5403,6093,9154,0463,8823,9674,025
Total Assets1,7741,8902,4322,5652,9183,3483,7173,7664,0224,1573,9994,0884,128

Va Tech Wabag Ltd Reserves and Borrowings Chart

Va Tech Wabag Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -79821126-2176-216-762451351285
Cash from Investing Activity 71-38-74-99122523951-3941
Cash from Financing Activity 60-65482182-10010649-135-8645-240
Net Cash Flow52-2186-9186-42-106-181145117-114

Va Tech Wabag Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days276250226222241242138177227174162186
Inventory Days
Days Payable
Cash Conversion Cycle276250226222241242138177227174162186
Working Capital Days8684647677681021281251028681
ROCE %20%20%21%20%17%18%19%11%14%13%13%20%

Va Tech Wabag Ltd Financial Efficiency Indicators Chart

Va Tech Wabag Ltd 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

Va Tech Wabag Ltd Shareholding Pattern Chart

No. of Va Tech Wabag Ltd Shareholders

Va Tech Wabag Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Value Fund9202925.5662.07
SBI Long Term Equity Fund7981630.2753.83
LIC MF Flexi Cap Fund2008361.4413.55
ICICI Prudential Infrastructure Fund1952950.2913.17
ICICI Prudential Exports and Services Fund1414830.789.54

Va Tech Wabag Ltd ROCE Trend

Va Tech Wabag Ltd EPS Trend

Va Tech Wabag Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)2.0721.2118.8316.6419.21
Diluted EPS (Rs.)2.0721.2118.8316.6419.21
Cash EPS (Rs.)1.6923.3717.2317.2918.77
Book Value[Excl.RevalReserv]/Share (Rs.)253.16245.32224.49214.29198.46
Book Value[Incl.RevalReserv]/Share (Rs.)253.16245.32224.49214.29198.46
Revenue From Operations / Share (Rs.)475.96478.99455.71467.49508.40
PBDIT / Share (Rs.)59.7143.3136.4946.1036.29
PBIT / Share (Rs.)58.3041.6834.5443.2833.22
PBT / Share (Rs.)1.2227.5820.0223.3519.45
Net Profit / Share (Rs.)0.2721.7415.2814.4815.70
NP After MI And SOA / Share (Rs.)2.0721.2117.7016.6319.20
PBDIT Margin (%)12.549.048.009.867.13
PBIT Margin (%)12.248.707.579.256.53
PBT Margin (%)0.255.754.394.993.82
Net Profit Margin (%)0.054.533.353.093.08
NP After MI And SOA Margin (%)0.434.423.883.553.77
Return on Networth / Equity (%)0.818.577.817.749.82
Return on Capital Employeed (%)20.2714.1411.9616.4513.37
Return On Assets (%)0.313.292.642.262.77
Long Term Debt / Equity (X)0.030.060.090.020.09
Total Debt / Equity (X)0.130.270.210.410.54
Asset Turnover Ratio (%)0.650.590.510.510.53
Current Ratio (X)1.331.371.401.291.28
Quick Ratio (X)1.321.351.381.281.27
Inventory Turnover Ratio (X)0.000.0083.17114.920.00
Dividend Payout Ratio (NP) (%)0.000.000.000.0020.81
Dividend Payout Ratio (CP) (%)0.000.000.000.0017.94
Earning Retention Ratio (%)0.000.000.000.0079.19
Cash Earning Retention Ratio (%)0.000.000.000.0082.06
Interest Coverage Ratio (X)5.643.072.512.312.64
Interest Coverage Ratio (Post Tax) (X)5.422.542.051.732.14
Enterprise Value (Cr.)2127.951731.041479.52612.302235.48
EV / Net Operating Revenue (X)0.710.580.520.230.80
EV / EBITDA (X)5.736.436.522.4311.26
MarketCap / Net Operating Revenue (X)0.730.580.550.170.65
Retention Ratios (%)0.000.000.000.0079.18
Price / BV (X)1.391.131.110.381.70
Price / Net Operating Revenue (X)0.730.580.550.170.65
EarningsYield0.010.070.070.200.05

Va Tech Wabag Ltd Profitability Ratios (%)

Va Tech Wabag Ltd Liquidity Ratios

Va Tech Wabag Ltd Liquidity Ratios (%)

Va Tech Wabag Ltd Interest Coverage Ratios (X)

Va Tech Wabag Ltd Valuation Ratios

Fair Value / Intrinsic Value of Va Tech Wabag Ltd

Fair Value: ₹131.90

The stock is overvalued by 82.39% compared to the current price ₹749

*Investments are subject to market risks

Strength and Weakness of Va Tech Wabag Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.17%, which is a positive sign.
  2. The company has higher reserves (1,112.15 cr) compared to borrowings (319.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.00 cr) and profit (135.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 42.20 and average Dividend Yield of 8.86%.
  2. The stock has a high average Working Capital Days of 89.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 210.08, which may not be favorable.

Should I Buy Va Tech Wabag Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Va Tech Wabag Ltd:
    1. Net Profit Margin: 0.05%
      • 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: 20.27% (Industry Average ROCE: 20.13%)
      • 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. Interest Coverage Ratio (Post Tax): 5.42
      • 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.
    4. Quick Ratio: 1.32
      • 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.
    5. ✗ Stock P/E: 15.1 (Industry average Stock P/E: 0)
      • 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.
    6. ✓ Total Debt / Equity: 0.13
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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