10 times return from FD in 1 year! Now this stock will rise further, brokerage is also bullish on Jhunjhunwala’s favorite stock
Vatek Wabag is a small cap company operating in water supply and management sector.
This stock has given a return of up to 74 per cent in the last one year.
The market cap of the company on the Bombay Stock Exchange is Rs 2,442.53 crore.
Multibagger Stock: Retail investors always keep an eye on the purchase of big investors and mutual funds in the stock market. Whenever a big investor or fund house increases its stake in a stock, common investors consider that stock better in terms of investment. Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, is also a top investor in the stock market. One stock included in his portfolio has given better returns. After this, International brokerage firm Nomura has advised to buy this stock.
Rekha Jhunjhunwala has a stake in VA Tech Wabag, a small cap company in the water supply and management sector. This stock included in his portfolio has jumped by more than 74 percent in 1 year. The brokerage firm is still bullish on the stock and has given a high target price.
Read this too- Price reached Rs 30 to Rs 684, it will increase further, this share will give 5 times return than bank FD!
Brokerage house gave big target
Global brokerage firm Nomura has maintained buy rating on Vatek Wabag stock with a price target of Rs 480. Today this share closed at Rs.415. Since the brokerage has given a target of 480 on this and it is about 14 percent higher than the current price. This small cap stock has given returns of up to 74 per cent in the last one year. Because in May last year its price was Rs 237 per share.
The market cap of the company on the Bombay Stock Exchange is Rs 2,442.53 crore. At the same time, according to the shareholding pattern for the March 2023 quarter available on the exchange, Rekha Jhunjhunwala holds 8 per cent stake in Vatek Wabag Limited. He holds 5,000,000 equity shares of the company and their value is around 209.9 crores.
Target to be debt free in 2-3 years
VA Tech Vabag’s Global Head-Business Development said, ‘Our effort will be on reducing debt. We had a debt of more than Rs 400 crore on the company in the last 3 years but now this amount has come down to Rs 210 crore. We will continue this effort and in next 2-3 years we will be debt free.
The company posted a loss of Rs 111.1 crore in the January-March 2023 quarter, while the company posted a net profit of Rs 46 crore in the same period last year. The company’s revenue has increased to Rs 934.51 crore in the last quarter, which is higher than last year.
Tags: BSE Sensex, Investment and return, multibagger stocks, stock market
FIRST PUBLISHED : May 23, 2023, 18:17 IST