VA Tech Wabag
How to size a top-down market opportunity (national water infrastructure) and choose a P/E benchmark when a company lacks direct listed peers.
- Rating
- Price target
- INR 1,958
- Published
- January 27, 2015
- Length
- 42 pages
- Sector
- Water treatment
- Market
- India
What the analyst argued
Nomura initiated VA Tech Wabag, one of India's largest water treatment companies (roots in Siemens' Austrian water business), at Buy with an INR 1,958 target. With roughly 68% of Indian sewage untreated and government and multilateral funding rising, including the Ganga clean-up, the analysts saw secular growth and estimated a 22% revenue CAGR over FY14-17 and about 18% over ten years. Technology and project-management expertise formed an entry barrier in a fragmented industry, and the company stayed debt-free despite slow-paying municipal customers. The target applied 22.5x FY17 P/E, benchmarked to Engineers India and NBCC.
Lead analyst: Amar Kedia.
Inside the report
- 01Key data on VA Tech Wabag
- 02Focus charts
- 03Water treatment sector presents a significant market, both in India and globally
- 04India demand-supply gap necessitates investments in building water infrastructure
- 05Key addressable areas in the water segment and market opportunity
- 06Ganga river cleaning: hype or reality?
- 07VATW: A solid global play on water and waste water treatment opportunity
- 08VATW: Financials
- 09VATW: Valuations
- 10VATW: Key investment risks
- P/E
- EV/EBITDA
- Price-to-book
- Comparable companies
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
42 pages
Tap the cover to open the PDF.Published by Nomura on January 27, 2015 and hosted here for educational use; the report and everything in it belongs to Nomura. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
More initiations
20 reports in the library- Australian Aged CareDeutsche BankHow a sector initiation models demographics and government funding before comparing three operators on the same DCF framework.Sector initiation · January 23, 2015 · 126 pagesTarget AUD 5.90 Estia, 4.50 Regis, 2.12 Japara
- BankUnitedBarclaysWhy banks are valued on price-to-tangible-book versus peers and recent deals, and how loan runoff creates an EPS trough.Initiation of coverage · February 5, 2015 · 30 pagesTarget USD 33.00
- 3P LearningDeutsche BankHow to value a recently listed subscription software company with a DCF, then stress-test it with bull and bear scenarios.Initiation of coverage · January 14, 2015 · 44 pagesTarget AUD 2.70
- CGN PowerDeutsche BankHow to build a life-of-asset DCF with no terminal value for a utility, and how to argue Sell on a well-liked IPO.Initiation of coverage · January 7, 2015 · 55 pagesTarget HKD 2.90
