Jhunjhunwala Stock: This beaten-down Jhunjhunwala stock is up 20% in a week. Can it rally more?
The enterprise is among ace trader Rakesh Jhunjhunwala’s top rated bets as his much better 50 % Rekha Rakesh Jhujhunwala owned 50 lakh equity shares or an 8.04 per cent stake in the enterprise as of March 31, 2022.
Buy wins
On Friday, the corporation declared its to start with order win from Senegal worthy of about $146 million (about Rs 1,133 crore) to present a protected and steady water offer to the folks of Senegal by making certain a extremely sustainable water resource.
It would be the greatest seawater desalination plant in Senegal and the largest in West Africa upon completion. Also, it is the initial buy win by the business in the African region.
Earlier this 7 days, the firm experienced bagged an 18 million euro (about Rs 150 crore) order from Russia. The buy was bagged from Korea-primarily based DL E&C Co. in the direction of a drinking water treatment method deal for the EuroChem methanol generation facility in Kingisepp, Russia.
Wabag’s scope involves design and style, engineering and provide, set up, pre-commissioning, commissioning and begin-up of the plant, which is scheduled to be concluded more than a 15-thirty day period interval.
Inventory motion
Even with a muted overall performance in 2022, Jhunjhunwala-owned inventory has risen about 20 for each cent in the past seven classes. Nonetheless, the counter is just about flat in the past one particular 12 months.
If in comparison to its 52-7 days substantial of Rs 404.25, strike in August past yr, the counter is down practically down by 45 per cent. On Friday, the scrip experienced acquired 10 for each cent to Rs 274.55.
Economical functionality
For the quarter ended March 31, 2022, the corporation noted a flat consolidated internet earnings of Rs 46 crore, when its full money fell 10 per cent to Rs 902 crore.
For the complete fiscal calendar year 2021-22, the enterprise claimed a consolidated PAT of Rs 132 crore as towards Rs 110 crore in the earlier fiscal.
Complete cash flow of the enterprise elevated by 6 for every cent to Rs 3,012 crore from Rs Rs 2,843 crore in FY21, pushed by the sustained execution momentum.
Brokerage Outlook
Va Tech Wabag is on an increasing income and earnings expansion trajectory as problems of substantial leverage, led by escalating performing capital now powering it, mentioned brokerage organization ShareKhan with a acquire simply call and a target price tag of Rs 333.
A effectively-funded sturdy order e book delivers convenience on execution and collections likely forward, it extra. “The government’s aim on water-associated investments gives balanced buy intake tailwinds for the business heading in advance.”
An additional domestic broker Certainly Securities has set a Rs 391 focus on on the counter, signalling a 56 for every cent upside. The brokerage had mentioned six reasons to commit in the counter.
World wide brokerage Nomura also has a ‘buy’ rating on VA Tech Wabag but it has trimmed the target price tag to Rs 448 from Rs 634 previously. It has also significantly trimmed its EPS forecast for FY23 and FY24.
(Disclaimer: Recommendations, tips, views and views provided by the professionals are their individual. These do not stand for the views of Economic Instances)
