VA Tech Wabag Ltd

CMP: 363

VA Tech Wabag Ltd. designs and builds water and sewage treatment plants. The Company constructs sewage treatment, processed and drinking water treatment, effluents treatment, sludge treatment, desalination and reuse plants. VA Tech Wabag serves municipalities and customers in the power, steel, and oil and gas industries.

VA Tech Wabag is a good bet in budding mid-cap space. Its currently trading at a P/E of less than 15 with good dividend yields of little over 1% in the last 12 months. The company runs at Zero debt and strong cash balance in hand of 153 Crores. That's cash to market cap ratio of over 15%. Revenues have risen from 705 Crores in FY2010 to 733 Crores in FY2011. Profits rose from 41 Crores to 55 Crores between 2010 and 2011. NPM rose from less than 6% to well over 7% in just a year. Buy and hold for long term gains.