This Rakesh Jhunjhunwala-backed water treatment and management stock — Va Tech Wabag has been continuously surging in the month of June. The shares of the company have jumped over 35 per cent to Rs 356.5 per share, today’s day high as against Rs 263.9 per share on June 1, 2021.
A celebrity investor Rakesh Jhunjhunwala, who is also termed as big bull, along with his wife Rekha holds around an eight per cent stake in the company, which is around 50 lakh shares with an investment of Rs 146.8 crore, as per the BSE data.
The stock on Thursday grew around three per cent to Rs 356.5 per share on the BSE intraday today, while it the stock earlier last week has reported its 52-week high of Rs 396.20 apiece, since then it has been trading muted on the chart. It’s earlier high was Rs 317 per share hit on June 9, 2021.
Since its quarter-four results, the stock has been soaring on the exchanges. Va Tech Bag reported a rise of over 52 per cent in its net profit to Rs 46.53 crore in the March-ended quarter of the financial year 2020-2021 versus Rs 30.47 crore in Q4 FY20.
The investment of Jhunjhunwala jumped by over 100 per cent in nine months, as they had subscribed the company’s shares via preferential issue at a price of Rs 160 per share on September 29, 2020.
The profit of the company rose on the back of healthy operational income. While its revenue from operations surged by 27.3 per cent year-on-year (YoY) basis at Rs 999 crore. And, EBITDA margin, excluding divestment gain, stood at 7.6 per cent from 7.1per cent in the year-ago quarter.
The company has potential with respect to growth as it works for water treatment, moreover, even government has a lot of trust in the company and has over Rs 1000 crore order book.