VA Tech Wabag shares saw a 2% increase in early trading on Monday following the announcement that the water treatment specialist had secured a repeat order from Reliance Industries Limited (RIL). The 'Medium' order pertains to the development of an Effluent Treatment Plant (ETP) at RIL's expansive Dhirubhai Ambani Green Energy Giga Complex (DAGEGC) in Jamnagar, India.
The contract encompasses the comprehensive scope of Design, Engineering, Manufacturing, Supply, Erection, and Commissioning of the advanced ETP. This crucial project is slated for completion within a 13-month timeframe.
Advanced Treatment for Green Energy Complex
The proposed Effluent Treatment Plant will incorporate state-of-the-art chemical and biological treatment technologies. A key feature of the design includes advanced sludge treatment, utilizing low-temperature drying for efficient management of residuals. This sophisticated approach underscores VA Tech Wabag's expertise in delivering sustainable industrial water and wastewater solutions.
Market Reaction and Company Outlook
Following the announcement, VA Tech Wabag's stock climbed to a high of Rs 2043, pushing the firm's market capitalization to Rs 12,665 crore. The company's shares traded higher than their 5, 10, 20, 50, 100, 150, and 200-day moving averages, indicating positive market sentiment. The Relative Strength Index (RSI) stood at 50.2, suggesting the stock was neither overbought nor oversold.
Sivakumar V, Senior General Manager – Sales and Marketing, India Cluster, commented on the order win, stating, “This repeat order reinforces our long-standing relationship with RIL, a key customer, and reflects the continued trust and confidence RIL places in our capabilities. We are pleased to be associated with RIL and support its evolving water and wastewater management requirements. This order is a testament to WABAG's technological expertise, execution capabilities, and leadership in delivering advanced industrial water and wastewater treatment solutions.”
VA Tech Wabag Limited specializes in the water treatment sector, providing solutions for drinking water, industrial and process water, water reclamation, desalination, and municipal and industrial wastewater treatment, including sludge management.