Va-Tech Wabag has received strong order inflow of `3048cr in 9M14 which shows company has strong visibility for next consecutive years. Company has given guidance of `2700cr order for full year but it exceed in 9M14 only so management has revised FY14 order inflow
guidance to `3500 cr. The company has already received Rs 244cr of firm orders out of `1169cr outstanding framework orders at the end of Q3FY14.
As per order book we can expect robust growth in consecutive years. We value the stock at 16.5x its FY15E EPS with a target price of Rs 733. We have initiated coverage on 30 Oct 2013 at Rs 510 & today stock have achieved our target of 667 still maintain buy rating & see further upside on stock so we have raised our target from 667 to 792 on the stock with a STRONG BUY rating.
