Rekha Rakesh Jhunjhunwala’s portfolio stock rises on entering into MoU with Al Jomaih Energy and Water

VA Tech Wabag has entered into a Memorandum of Understanding (MoU) with Al Jomaih Energy and Water (AEW), a leading developer of energy and water projects in the Middle East. This MoU was signed during the India-Saudi Investment Forum held on September 10, 2023, and September 11, 2023, on the occasion of the G20 Summit. It will explore collaborative opportunities in water project development across Saudi Arabia and the broader Middle East region.

Under this strategic partnership, both WABAG and AEW will cooperate on various aspects, including Engineering, Procurement, and Construction (EPC), project development, and feasibility assessments for potential water projects. This collaboration will leverage the combined expertise of both organizations to tackle the pressing water challenges in the region.

AEW will provide critical support related to local market intelligence, business development, and engagement with potential customers, regulators, ministries, lenders, and suppliers in the region. WABAG will contribute the technical and commercial expertise required for feasibility assessment and project development.

Va Tech Wabag Limited is engaged in the business of the water treatment field. Its principal activities include the design, supply, installation, construction and operational management of drinking water, wastewater treatment, industrial water treatment and desalination plants. Rekha Rakesh Jhunjhunwala holds an 8% stake in the company.

In the recent quarter Q1FY24, the company generated a revenue of Rs 552.80 crore, which declined by 12.49% compared to the previous year. The operating profit for Q1FY24 stood at Rs 91.30 crore, marking a significant increase of 42.43% on a YoY basis. The company’s net profit after tax (PAT) saw a significant jump, reaching Rs 59.40 crore, with a growth of 110.64% on a YoY basis.

Today, the stock opened at Rs 466.05, with a high and low of Rs 479.85 and Rs 466, respectively. The stock is currently trading at Rs 476.15, up by 2.66%. The stock has a 52-week high of Rs 544.80 and a 52-week low of Rs 250.05. The company has a ROCE of 19.4% and an ROE of 3.11% with a market capitalization of Rs 2,982 crore.

Investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.