Va Tech Wabag (NSE:VATE), a leading Indian multinational in water technology, has secured a USD 371 million (~INR 3,251 crore) order as part of a consortium for the Al Haer Independent (LON:IOG) Sewage Treatment Plant (ISTP) in Riyadh, Saudi Arabia. Awarded by Al Haer Environmental Services Company, the contract includes engineering, procurement, and construction (EPC) of the 200 MLD facility, along with the development of associated outfall delivery facilities.
The ISTP is being developed by a consortium of Miahona Company, Marafiq, and Besix Group, with the Saudi Water Partnership Company (SWPC) as the principal off-taker for water and wastewater projects in the region. This project aligns with Saudi Arabia’s Vision 2030, which aims to enhance infrastructure and improve sewage treatment services.
Under the contract, WABAG will serve as the Technology Partner and EPC leader, responsible for designing and building the ISTP, while its partner, Mutlaq Al-Ghowairi Contracting Company (MGC), will handle pipeline and reservoir construction. The company has an established presence in the Middle East and has successfully delivered multiple water and wastewater treatment projects in the region, including a recent 20 MLD industrial wastewater treatment plant at the Ras Tanura Refinery Complex.
Commenting on the order, Mr. Sivakumar V, Regional Head – Sales and Marketing at WABAG, expressed confidence in the company’s continued expansion in Saudi Arabia. He highlighted WABAG’s technological superiority and strong track record, emphasizing that this order win further solidifies its leadership position in the Middle East’s water treatment sector.
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While this contract enhances WABAG’s order book, valuation remains a key factor for investors. According to InvestingPro’s fair value model, the intrinsic value of the stock stands at INR 1,140 per share, compared to the current market price of INR 1,366.6, indicating a 16.6% downside potential.
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