This stock of Rakesh Jhunjhunwala rose more than 10% today, brokerage firm increased the target price

Multibagger Stock: The stock rose over 10% on Tuesday after global brokerage Nomura raised its target price on Va Tech Wabag stock and maintained a ‘buy’ rating on the stock. At the end of September quarter of this financial year, veteran investor Rakesh Jhunjhunwala held 50 lakh shares or 8.04% stake in this water treatment firm on behalf of his wife Rekha Rakesh Jhunjhunwala. He had bought stake in the firm for the first time in August 2020. The purchase of the YAG stake was part of a fund raising exercise by Water Treatment Perm.

The stock touched a high of Rs 367 with a rise of 10.38% against the previous close of Rs 331.50 on BSE. The stock opened at Rs 292 with a gain of 3.49% today. Later, the small cap stock closed 7.03% higher at Rs 354.80 on BSE. The stock has gained momentum after four consecutive days of decline.

Share of VA Tech Wabag is higher than the moving averages of 5 Day, 20 Day, 50 Day, 100 Day and 200 Day. The stock has gained 91% in one year and has gained 72% since the beginning of this year.

Following the firm’s strong earnings report for the September quarter, Nomura has raised its target price on VA Tech Wabag to Rs 581, which is 76 per cent higher than the current market price.

The brokerage said that the order flow was strong for the first half of FY22. The execution was on track to achieve Rs 3,100-3,300 crore in sales for FY22. The start of execution for international projects in Russia and Malaysia from the second half adds visibility to the growth in execution in addition to the normal seasonal increase.

Nomura said, “Industrial water capex is focused on meeting faster self-sufficiency and increased regulatory scrutiny. According to the management, this will increase the prospects of high-margin industrial water capex to 15% per annum for the next five-seven years. Should support growth, which provides long-term order inflow visibility.”

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

Read also:

Mutual Funds: These mutual fund schemes have made investors rich, giving returns up to 118% in a year

Multibagger Stock Tips: This multibagger stock gave 100% return in 2021, brokerage firm gave advice to buy