Motilal Oswal Financial Services Ltd rates VA Tech Wabag Ltd Buy
Valuation stays BUY with TP INR 2,529, based on 28x FY28E P/E, implying 27% upside.
By ScoutQuest · · 1 min read
- Report date
- 9 Nov 2026
From the report
The figures below are as printed in the report by Motilal Oswal Financial Services Ltd.
- Rating
- Buy
- Target
- INR 2,529
- Valuation
- 28x · P/E · FY28E
- Report
- result update
Reiterates BUY with a TP of INR 2,529 based on 28x FY28E P/E.
Estimate changes
- EPS FY27E: raised 6%
- PAT FY27E: raised 6%
- Revenue FY27E: 0
- EPS FY28E: 0
Catalysts
The broker's points, summarised.
- strong order book providing revenue visibility
- large and mega technology-led projects
- high-margin EP, industrial and O&M segments
- Europe activity returning
- sunrise segments like semiconductors, PV solar, data centers and hydrogen
Risks
The broker's points, summarised.
- war in Middle East slowing award process
- political delays in Bangladesh
- commodity inflation
- shipment delays
Analysts: Ashish Poddar
Order book above INR202b underpins revenue visibility
Motilal Oswal Financial Services Ltd notes VA Tech Wabag’s order book of over INR202b gives strong visibility, with 1H order intake at INR52b and a book-to-bill ratio of 4.8x.
Second quarter operating performance matched expectations
Consolidated revenue, adjusted EBITDA and adjusted PAT rose 20%, 20% and 23% YoY, respectively; adjusted EBITDA margin was 14.4%, while PAT beat because of forex gains.
RoW markets led growth and margins
Revenue from rest-of-world markets increased 26% YoY and delivered a 31.6% EBIT margin, with the international mix at 54% in the quarter.
Management prioritises large and mega projects
Motilal Oswal Financial Services Ltd says the company will remain selective, focusing on technology-led large and mega projects and preferring margins and cash flows over volume.
Cash flow and returns strengthen the investment case
Gross cash reached INR12.2b and net cash INR10b; the broker estimates FY28E RoE/RoCE/RoIC at 16%/23%/36%.
Motilal Oswal Financial Services Ltd's call
Motilal Oswal Financial Services Ltd reiterates BUY with a target price of INR2,529. It holds this view on the healthy in-line 2QFY27 operating performance, a PAT beat from forex gains, a large order book, strong cash generation and improving return ratios; it raised FY27 earnings by 6% for forex gains while keeping FY28 conservative. The target is based on 28x FY28E P/E, and the broker notes the stock trades at 22x FY28E P/E.
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The call above is Motilal Oswal Financial Services Ltd's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.