Latest news with #VaTechWabag
Mint
01-06-2025
- Business
- Mint
From VA Tech Wabag to PCBL Chemical— Devarsh Vakil of HDFC Securities suggests 5 stocks to buy for long term
Stocks to buy for the long term: Indian stock market benchmark, Nifty 50, extended gains to the third consecutive month in May, supported by largely better Q4 earnings, foreign capital inflows and healthy domestic macroeconomic indicators. However, stretched valuations and geopolitical uncertainties kept the gains capped. The Nifty 50 rose nearly 2 per cent in May after a 3 per cent gain in April and a 6 per cent gain in March. Year-to-date, the index has risen 4.7 per cent. Experts point out the remarkable resilience of the Indian economy and markets, which have overcome domestic and global challenges. They remain positive about the domestic market's medium-term prospects due to a healthy economic growth outlook and a strong influx of retail investors. "The medium-term outlook remains bright, supported by robust growth prospects driven by a domestically-oriented economy, youthful demographics, and advancing digitalisation— creating diverse, high-quality investment opportunities across industries," said Devarsh Vakil, Head of Prime Research, HDFC Securities. "India's domestic economic foundation provides protection against global volatility, reinforcing that market downturns are temporary. We maintain a bullish outlook on markets for the long term and present these five long-term investment opportunities," Vakil said. Vakil picks the following five stocks to buy for the next one to two years for healthy upside. Do you own any? PCBL Chemical is India's largest and the world's 7th largest carbon black company, which is essentially used as a reinforcing material for manufacturing tyres. The company has presence in three major product lines: (i) tyres, (ii) performance blacks, and (iii) speciality blacks. Management is positive on the long-term demand outlook. Management hinted that the completion of de-stocking in the global market and lowering inflation could be positive for demand pickup. The company will continue to operate in capex mode for the next three years, adding brownfield capacity in Chennai, doubling aqua-pharm capacity, increasing speciality CB capacity, and infusing money into the JV to capture future growth opportunities. The company has started work on a large-scale pilot plant in India that will develop nano-silicon additives for use in the anodes of Li-Ion batteries. It is looking to invest nearly $30 million in the JV and expects combined JV EBITDA of ₹ 800-900 crore at peak levels in the 36 months after commercialisation. It expects commercialisation by Q4FY27E. "We expect revenue and PAT to increase at a CAGR of nearly 14 per cent and 20 per cent, respectively, over FY25-27E. At the current market price, the stock trades at 21.5 times FY27E EPS (earnings per share)," said Vakil. Va Tech Wabag is a pure-play water company with a strong presence of more than 25 years in water technology and customised water treatment solutions through EPC (engineering, procurement, and construction) services, O&M (operations and maintenance) services, research and development, construction and commissioning. The company exhibits multiple growth triggers, with record FY25 performance across key metrics like sales, EBITDA, PAT, healthy cash balance, and order book (three times sales), ensuring strong revenue predictability for three years. Wabag's asset-light, profitable growth strategy, 95 per cent multilateral/sovereign-backed order book, expanding international focus, along with an upgraded AA credit rating, exhibits robust investment potential. "Investors can buy the stock at current levels for a target price of ₹ 2,100 per share (33 times FY26E EPS)," said Vakil. Star Cement is one of the leading players in the most profitable North-East region. With a cement capacity of 7.7 MTPA, Star commands a nearly 24 per cent share in the North-East market. "We believe that it has a strong, sustainable competitive advantage in the North East region, as entry of outside players in this market is limited," Vakil said. Over the years, Star has created a strong brand recall and is well-positioned to capitalise on future growth opportunities. "We expect a healthy performance from the company in the coming years on the back of increased clinker and cement capacity, leadership position in the profitable and growing North-East market, and cost-saving initiatives to drive profitability," said Vakil. "We believe investors can buy the stock in ₹ 210-225 band (10.9 times FY27E EV/EBITDA) and add on dips in ₹ 180-195 (9.4 times FY27E EV/EBITDA) band - fair value of ₹ 260 (12.8 times FY27E EV/EBITDA) over the next two to three quarters," said Vakil. EPL is the leading manufacturer of laminated plastic tubes in the world, with nearly 35 per cent market share in oral care and catering to companies like Unilever, Colgate, P&G, etc. In the personal care market, EPL's global share stands at nearly 10 per cent, and with an opportunity three times as big as oral care, the runway for growth is long. EPL is a market leader (nearly 20 times share in global speciality packaging) that is set to continue gaining market share in an industry which is undergoing a structural shift owing to innovative product introduction. EPL's strong innovation pipeline, a plethora of sustainable solutions, is expected to be quickly adopted by larger personal care brands given their commitment to sustainability goals. The company has delivered robust results in recent quarters amidst a challenging geopolitical backdrop. The key positive is the sustained margin expansion, as the EBITDA margin expanded for the 10th consecutive quarter. EPL's management has committed to delivering double-digit revenue growth and with an EBITDA margin ambition of nearly 20 per cent in FY26. Stability in raw material prices should further aid the margin recovery. "Going ahead, we expect revenue and EBITDA CAGR of 10 per cent and 14 per cent, respectively, over FY25-27E. RoCE and RoE are expected to increase further from 16.3 per cent and 17.4 per cent, respectively, in FY25 to 17.9 per cent and 21.1 per cent by FY27. The company currently trades at 15.5 times FY27E EPS," said Vakil. Castrol India is an automotive and industrial lubricant manufacturing company, supported by a strong distribution network that reaches over 1.48 lakh retail outlets and 350 distributors. Castrol India is focused on brand building, widening the distribution network, and launching new products, which will contribute volume growth and market share expansion. Recognising the need for advanced cooling solutions in rapidly expanding data centres, Castrol India is leveraging its expertise in fluid technology to innovate in this new domain. The company is focused on volume growth while maintaining margins and emphasising the premiumisation of products. "We expect Castrol's lubricants volume to increase by 4.5 per cent and 5 per cent in CY25E and CY26E, respectively. We recommend buying the stock with a target price of ₹ 239. At the current market price of ₹ 217, the stock trades at 19.5 times CY26E," said Vakil. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
Mint
28-05-2025
- Business
- Mint
Reliance Infra, Va Tech Wabag among 18 micro-cap stocks that surged up to 24% in a week amid stock market volatility
Microcap stocks in focus: Shares of Va Tech Wabag, Reliance Infrastructure, Refex Industries, Gopal Snacks, Prince Pipes & Fittings, Subros, and Neogen Chemicals are among 18 micro-cap stocks that defied market volatility to deliver double-digit gains over the past week. Despite the back-and-forth movement in frontline indices amid global headwinds—including rising trade tensions, US fiscal concerns, and higher bond yields—as well as positive domestic tailwinds such as reports of India becoming the fourth-largest economy, the RBI's bumper dividend, and a steady rise in the rupee, several often-overlooked micro-cap stocks have managed to shine amid ongoing market volatility. These stocks span sectors such as pharma, FMCG, industrials, utilities, chemicals & petrochemicals, and fertilisers. Some counters witnessed a spike in demand following the release of their March quarter results, while others rallied on the back of recent order wins and value buying at lower levels. The Nifty Microcap 250 index rose 2.33% over the past week and 9% over the past month, outperforming the Nifty 50, which gained 0.30% and 3% during the same periods. Shilpa Medicare's stock surged 24.3% over the past week, pushing its May gains to 36%, the highest monthly rise since February 2020. The rally is driven by multiple positive developments, including its subsidiary Shilpa Pharma Lifesciences receiving an EIR from the USFDA and its biologics arm obtaining European GMP certification for its Dharwad facility, with zero inspection observations. Dishman Carbogen Amcis is another stock from the pharma pack that maintained a steady upward trajectory, gaining 22.2% in a week. Enviro Infra Engineers' shares also jumped 20%, while those of Prince Pipes & Fittings, Sequent Scientific, Gopal Snacks, and Refex Industries delivered returns of up to 14%. Stock Name Returns in last one week Shilpa Medicare 24% Dishman Carbogen Amics 22.2% Enviro Infra Engineers 20% Prince Pipes & Fittings 17.3% Sequent Scientific 15.8% Gopal Snacks 14.4% Refex Industries 13.8% Va Tech Wabag 12.9% Subros 12% Venus Pipes & Tubes 11.9% Reliance Infrastructure 11.7% ITD Cementation India 11.4% ISGEC Heavy Engineering 10.8% Kaveri Seed Company 10.3% Neogen Chemicals 10.1% Transrail Lighting 10.1% India Glycols 10% Lloyds Enterprises 10% Source: Trendlyne On the back of steady order wins, coupled with a healthy performance in the March quarter, Va Tech Wabag's share price jumped 13% in a week. The Indian water treatment company has secured new orders worth roughly ₹ 57 billion this year, increasing its order book to around ₹ 137 billion, including framework agreements. Likewise, Reliance Infrastructure's share price also surged 12%. The company-promoted Reliance Defence and Düsseldorf-based Rheinmetall AG entered into a strategic partnership in the field of ammunition on May 22. This marks the third major partnership for Reliance Defence, following its successful strategic alliances with Dassault Aviation and the Thales Group of France, the company said in its May 23 press release. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market is likely to consolidate around current levels in the near term. With mutual funds holding sizeable cash reserves, any dip is expected to be bought into, while high valuations may lead to selling on rallies. He noted that a sustained rally will only occur once leading indicators point to a revival in earnings growth, which may take some time. Vijayakumar also highlighted a slow accumulation in rate-sensitive sectors like autos, driven by expectations of further rate cuts amid declining inflation. Additionally, he pointed out that investors are now staying invested through SIPs for longer periods than before, which is expected to provide underlying support to the market. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
22-05-2025
- Business
- Business Standard
Va Tech Wabag consolidated net profit rises 37.43% in the March 2025 quarter
Sales rise 23.76% to Rs 1156.20 crore Net profit of Va Tech Wabag rose 37.43% to Rs 99.50 crore in the quarter ended March 2025 as against Rs 72.40 crore during the previous quarter ended March 2024. Sales rose 23.76% to Rs 1156.20 crore in the quarter ended March 2025 as against Rs 934.20 crore during the previous quarter ended March 2024. For the full year,net profit rose 20.24% to Rs 295.30 crore in the year ended March 2025 as against Rs 245.60 crore during the previous year ended March 2024. Sales rose 15.32% to Rs 3294.00 crore in the year ended March 2025 as against Rs 2856.40 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1156.20934.20 24 3294.002856.40 15 OPM % 12.1812.36 - 12.8212.82 - PBDT 132.50102.40 29 390.30338.50 15 PBT 131.1099.90 31 384.40330.10 16 NP 99.5072.40 37 295.30245.60 20
Business Standard
21-05-2025
- Business
- Business Standard
Va Tech Wabag standalone net profit rises 37.50% in the March 2025 quarter
Sales rise 34.54% to Rs 1038.50 crore Net profit of Va Tech Wabag rose 37.50% to Rs 99.00 crore in the quarter ended March 2025 as against Rs 72.00 crore during the previous quarter ended March 2024. Sales rose 34.54% to Rs 1038.50 crore in the quarter ended March 2025 as against Rs 771.90 crore during the previous quarter ended March 2024. For the full year,net profit rose 15.06% to Rs 271.30 crore in the year ended March 2025 as against Rs 235.80 crore during the previous year ended March 2024. Sales rose 14.51% to Rs 2873.80 crore in the year ended March 2025 as against Rs 2509.70 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1038.50771.90 35 2873.802509.70 15 OPM % 13.1614.10 - 13.4613.88 - PBDT 131.4098.40 34 364.50320.20 14 PBT 130.6097.10 35 361.50316.00 14 NP 99.0072.00 38 271.30235.80 15
