Shares of VA Tech Wabag Ltd tanked 19% on Wednesday, 18 December, after the company announced the Kingdom of Saudi Arabia’s Saudi Water Authority had cancelled an order for a 300 MLD Mega Sea Water Desalination Plant valued at Rs 2,700 crore.

The customer notified all offer participants on 16 December 2024 that the aforementioned contract was cancelled in compliance with their internal administrative procedures, according to an exchange filing by Wabag.

Wabag obtained an order for a 300 MLD Mega Sea Water Desalination project in the Kingdom of Saudi Arabia on 6 September 2024. The company asserted that it had contacted the customer to thoroughly understand the reasons for the cancellation.

For Wabag, this was a major victory for the order. Wabag’s order book would now reach Rs 10,450 crore after this agreement was cancelled.

Wabag also owns a Rs 3,500 crore L1 stake. In the water EPC market, Wabag is still our number one pick, despite the fact that the stock price may initially decline as a result. Any major stock price adjustment should be viewed as an opportunity to purchase, the brokerage firm suggested.
 
Wabag, a pure-play water technology company, provides Total Water Solutions in the industrial and municipal sectors with a full suite of technologies and services. For the construction of water and wastewater infrastructure, the company is a full-life partner, handling design, engineering, supply, construction, installation, startup, and long-term operational management across multiple business models.

At 12:31 pm, the shares of VA Tech Wabag were trading 10.86% lower at Rs 1,680.30 on NSE.

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