Shares of Va Tech Wabag, a key counter from Rekha Jhunjhunwala's portfolio, rallied as much as 5 per cent during the trading session on Friday after the company announced its foray into Bangladesh. The pure-play water technology multinational player has secured an order worth about Rs 800 crore.

The company has bagged the order for designing, building and operating (DBO) for reconstruction, expansion and operation of Pagla Sewage Treatment Plant (STP) with a capacity of 200 million litres per day (MLD) at Pagla in the City of Dhaka, Bangladesh for Dhaka Water Supply & Sewerage Authority (Dhaka WASA).

The project is funded by global names including World Bank and Asian Infrastructure Investment Bank (AIIB) under Dhaka Sanitation Improvement Project (DSIP). This plant will operate based on an activated sludge treatment process. It uses green fuel generated during the wastewater treatment process producing Green Energy required for running the plant.

Shares of Va Tech Wabag jumped more than 5 per cent to Rs 335 on Friday following the announcement, before trading to Rs 330 at 12.10 am. The scrip had settled at Rs 319.75 on Thursday.

Va Tech Wabag's shares have been trading flat in the last one month, whereas it is almost flat on a year-to-date basis. It has dropped 14 per cent from its 52-week high at Rs 375 in December 2022. However, it is up by 12 per cent in the last six months, whereas the counter has gained 15 per cent in the last one year.

The scope of the project includes design, engineering, supply, construction, installation and commissioning of the 200 MLD STP followed by operation and maintenance (O&M) for a period of 60 months. This project has the potential to be expanded to 600 MLD in the future, fueled by the city's growing needs, the company said in its statement.

Va Tech Wabag is a global leader in the water industry which offers a complete range of technologies and services for total water solutions in both municipal and industrial sectors. Its work is spread over 25 countries in four continents.

Seasoned investor Rakesh Rekha Jhunjhunwala owned 50,00,000 equity shares, or 8.04 per cent stake, in Va Tech Wabag as of December 31, 2022, the company's shareholding pattern for the quarter said.

In its report released in February 2023, brokerage firm Sharekhan by BNP Paribas had a buy rating on Va Tech Wabag with a target price of Rs 420 citing a robust order pipeline with an improving margin profile and attractive valuation.

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2023-03-17T07:24:16Z dg43tfdfdgfd