VA Tech Wabag Ltd shares, following a dismal show in the past one year, received price targets on Tuesday that suggested up to 31 per cent potential upside. ICICI Securities maintained 'Buy' on the stock with a revised target of Rs 1,680, saying robust execution drove earnings momentum in Q4. JM Financial, which sees VA Tech Wabag as well-placed for long term growth, gave a higher target of Rs 1,835. MOFSL target at Rs 1,950, in fact, suggested 31 per cent potential upside. Following the Q4 results, VA Tech Wabag rose 4.79 per cent to hit a high of Rs 1,522 on BSE. Despite this, the scrip is down 4.49 per cent for the one-year period. 

VA Tech Wabag maintained its longer term revenue growth guidance of 15-20 per cent with possibility of exceeding it in FY27 led by strong backlog. It also maintained Ebitda margin guidance of 13–15 per cent. 

"Bid pipeline remains robust across the Middle East, Africa and CIS regions. Management indicated that buyback remains under consideration alongside higher dividend payouts, while balancing the need to preserve cash for acquisitions and future growth opportunities. We see EPS upgrades of 4 per cent each in FY27/28E led by higher revenue," JM Financial said. 

MOFSL increased its revenue estimates by 3-4 per cent. It broadly maintained its earnings estimates on lower margin expectations. 

"The outlook for strong FCF generation, Rs 1,000 crore  net cash status, and improving return ratios makes VATW’s scrip attractive at 17 times FY28 P/E. We, thus, reiterate a BUY rating and a TP of Rs 1,905, based on 22 times FY28 P/E," MOFSL said.

With improved execution, a healthy order book and promising order prospects, ICICI Securities estimated revenue for Va Tech Wabag to grow at a 14 per cent CAGR over FY26-28E, with Ebitda margin at 13.5 per cent. 

"The stock is trading at a valuation of 18 times FY28E. Maintain BUY with a revised target of Rs 1,680," ICICI Securities said.