Waste Management Company Va Tech Wabag saw an upgrade by BOFA Merrill Lynch Research Wing just a while ago with the following note,
our channel checks suggest increased order inflow momentum for FY13E led by municipal and industrial orders. Rationale: (1) 15% new order CAGR in FY12-15E, led by domestic biz (municipal/industrial) and new market forays; (2) rise in O&M revenue to 20% in FY15E (15% in FY12); and (3) 20% EPS CAGR in FY12-14E, on 13% revenue CAGR and 120bp margin increase. We lift FY14E earnings by 4% and raise Stock Target Price to Rs 600 on re-rating to 15x FY14E EPS (12x) which is supported by our DCF analysis
