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Va Tech Wabag Ltd

NSE: WABAG BSE: 533269

1173.20

(7.66)%

Tue, 03 Feb 2026, 08:50 pm

Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (4.6x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
  • VA Tech Wabag's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • VA Tech Wabag's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividend payments have increased, but VA Tech Wabag only paid a dividend in the past 9 years.
  • Whilst dividend payments have been stable, VA Tech Wabag has been paying a dividend for less than 10 years.

future

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Pros

  • Cash flow for VA Tech Wabag is expected to increase by more than 50% in 2 years time.
  • VA Tech Wabag's earnings growth is expected to exceed the India market average.
  • VA Tech Wabag's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current Asia Water Utilities industry average.
  • An improvement in VA Tech Wabag's performance (ROE) is expected over the next 3 years.
  • VA Tech Wabag's revenue growth is expected to exceed the India market average.
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Cons

  • VA Tech Wabag's earnings are expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).
  • VA Tech Wabag's earnings are expected to increase but not above the low risk growth rate next year.
  • VA Tech Wabag's net income is expected to increase but not above the 50% threshold in 2 years time.
  • VA Tech Wabag is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • VA Tech Wabag's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • VA Tech Wabag's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • VA Tech Wabag is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • VA Tech Wabag is profitable, therefore cash runway is not a concern.
  • VA Tech Wabag is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 5.3x debt.
  • VA Tech Wabag's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
  • Low level of unsold assets.
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Cons

  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • The level of debt compared to net worth has increased over the past 5 years (29.4% vs 51.6% today).
  • VA Tech Wabag's level of debt (51.6%) compared to net worth is high (greater than 40%).

management

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Pros

  • The tenure for the VA Tech Wabag board of directors is about average.
  • Rajiv's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the VA Tech Wabag management team is about average.
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Cons

  • Rajiv's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • VA Tech Wabag has significant price volatility in the past 3 months.

    past

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    Pros

    • VA Tech Wabag's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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    Cons

    • VA Tech Wabag's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • VA Tech Wabag used its assets less efficiently than the Asia Water Utilities industry average last year based on Return on Assets.
    • VA Tech Wabag's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • VA Tech Wabag has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • VA Tech Wabag's 1-year earnings growth is negative, it can't be compared to the Asia Water Utilities industry average.

    value

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    Pros

    • VA Tech Wabag's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • VA Tech Wabag's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • VA Tech Wabag is good value based on assets compared to the Asia Water Utilities industry average.
    • VA Tech Wabag is good value based on expected growth next year.
    • VA Tech Wabag is good value based on earnings compared to the Asia Water Utilities industry average.
    • VA Tech Wabag is good value based on earnings compared to the India market.
    • BSE:533269 is up 2.8% outperforming the Water Utilities industry which returned -4.6% over the past month.
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    Cons

    • 533269 underperformed the Water Utilities industry which returned -10.9% over the past year.
    • 533269 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:533269 is up 2.8% underperforming the market in India which returned 8% over the past month.

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