VA Tech Wabag Rises 4% After Bagging Major Repeat Orders from Reliance Industries

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VA Tech Wabag Rises 4% After Bagging Major Repeat Orders from Reliance Industries

Shares of VA Tech Wabag Ltd. surged by up to 4% in early trade on Thursday, October 10, following the announcement of significant repeat orders from Reliance Industries Ltd. (RIL).

October 10th, 2024 News

Shares of VA Tech Wabag Ltd. surged by up to 4% in early trade on Thursday, October 10, following the announcement of significant repeat orders from Reliance Industries Ltd. (RIL). The Chennai-based water treatment and desalination solutions provider continues to strengthen its position in the industrial water segment, backed by long-standing associations with major clients.

Key Highlights:

Repeat Orders from Reliance: The new orders are for Water Treatment Systems at Reliance’s Dahej and Nagothane facilities.
Order Value: The orders fall under the company’s classification of a 'large' order, which typically ranges between ₹300 to ₹500 crore.
Decades-long Relationship: VA Tech Wabag has been a trusted partner of RIL for almost three decades, demonstrating consistent technical expertise and competitive pricing.
Company’s Statement: In its official statement, the company credited its longstanding partnership and a technologically superior, competitive bid as key factors for securing this repeat business from one of its major clients.

What the Management Says:

"Reliance Industries has been a key account for WABAG for nearly 30 years. This repeat order further solidifies our standing as the preferred supplier for RIL," said S. Natrajan, Head of Sales & Marketing, India.

He further emphasized that the new order win reflects WABAG’s leadership in water treatment and recycling solutions for the Oil, Gas, and Petrochemical sector and is a testimony to the company’s technological superiority.

Stock Performance:

VA Tech Wabag shares are currently trading 1.98% higher at ₹1,498.40, indicating positive investor sentiment post the order announcement.
The stock has already more than doubled in value in 2024, boosting the wealth of shareholders significantly.
The company’s current market capitalization stands at ₹9,322 crore.

Conclusion:

This recent order win marks yet another milestone for VA Tech Wabag in its ongoing journey as a market leader in the industrial water solutions segment. With strong support from established clients like Reliance Industries, the company is well-positioned to continue its growth trajectory in the water treatment and recycling space.

The new orders also highlight the increasing focus on water management solutions, an area of critical importance for the sustainability and efficiency of large-scale industrial operations in India.