Well many of viewers emailed me about diwali pick, so going to post diwali pick. I cant detail about co. as posting in hurry but i am sure the co has good business and reputation in the country as well out of country. The co. is VATECH WABAG. It is in water solution business and good value picking at 590-595 for the medium to long term.
Happy investing
Happy investing
Sir, thanks for the new Diwali pick. Sir, I could see that even-though Vatech Wabag has so much of cash in their book they haven’t given any dividend for last two yrs. Moreover, they have increased their debt also along with equity dilution in 2015. The present PE of the company seems to be quiet high compared to its historical value. I am not able to understand how it is a value pick. Please guide me.
ReplyDeleteThank you and best regards
Well, i have data that co. Paying dividend since 2012 continously, co. Equity was 5.3 in 2014, in 2015 co gave bonus 1:1 so it became 10. something, co. Has 8000 cr. Order book, co has great room for expand npm, and co is exploring , expanding biz globally and has good brand value. Looking to eps 27 fy 2018, its avalble @ 23 pe, and every good quality command premium and you have to pay.. read this what amrish baliga says on tv.....
DeleteAmbareesh Baliga on VA Tech Wabag: The stock cracked about 4-5 percent and that in fact gave me an opportunity to pick up. The main story is water treatment and I think that is a big story going ahead even from a country, even from a global point of view. The company is sitting on orders worth about Rs 8,200 crore or so. But the opportunity size is huge. Namami Gange itself is about Rs 25,000 crore, couple of states, Maharashtra, Karnataka, Tamil Nadu and Delhi, the opportunity size in terms of the tenders, which would be coming that is about Rs 18,000 crore, I am not even talking about the rest of the India. So Rs 43,000 crore just between these, so there is no way VA Tech Wabag will not have worked – clearly the visibility is there at least for the foreseeable 8-10 years.
So again, looking at an EPS of over Rs 38 for FY18, Rs 46 for FY19, I don’t think the downside is very much from here. It may just correct in case the market corrects and I am looking at a price of about Rs 850.
I would place this company a slightly better compared to other company
Sir,Thanks for Diwali pick
ReplyDeleteThank you very much Sir, for your detailed explanation
ReplyDeleteI appreciated your work very thanks
ReplyDeleteHappy Diwali Messages in english