Va Tech Wabag Ltd.
ISIN: INE956G01038 • Market Cap: ₹12,347 Cr
The 5-Pillar Quality Audit for Va Tech Wabag Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.9%), Return on Capital Employed (18.2%), and equity compounding (14.4%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.09 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.8%) and 3Y PAT CAGR (16.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 31.27 vs PEG of 1.86 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 19.1%, backed by 24.6% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.09)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Mid Cap)
Established player in the Utilities sector with an overall fundamental quality score of 68/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Utilities)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Utilities space.
Quantitative Strategy Eligibility
Checking WABAG against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Utilities Sector Peer Comparison
Compare WABAG directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Va Tech Wabag Ltd. (WABAG)Current | 68/100 | ₹12,347 Cr | 31.27 | 18.2% | 0.09 | — |
| Ion Exchange (India) Ltd. (IONEXCHANG) | 53/100 | ₹5,465 Cr | 55.72 | 13.6% | 0.34 | View |
| Refex Industries Ltd. (REFEX) | 79/100 | ₹4,075 Cr | 16.57 | 21.3% | 0.12 | View |
| Enviro Infra Engineers Ltd. (EIEL) | 82/100 | ₹3,448 Cr | 19.05 | 25.3% | 0.23 | View |
Frequently Asked Questions: Va Tech Wabag Ltd.
Q:What is the 5-Pillar Fundamental Score for Va Tech Wabag Ltd. (WABAG)?
Va Tech Wabag Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (64/100), Financial Health (85/100), Growth (70/100), Valuation (62/100), and Ownership Quality (52/100).
Q:Is WABAG fundamentally strong for long-term investment?
WABAG currently holds a moderate quality rating of 68/100. While it operates in the Utilities sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does WABAG pass the Coffee Can Investing filter?
Yes! WABAG satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does WABAG compare against other Utilities peers?
Within India's Utilities sector, WABAG trades at a P/E of 31.27 and generates an ROCE of 18.2%. Compare its 5-Pillar score of 68/100 against top sector peers like Ion Exchange (India) Ltd. (53/100), Refex Industries Ltd. (79/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.