Motilal Oswal believes large order inflows and a significant margin expansion could fuel Va Tech's valuation re-rating in the near to medium term.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.Motilal Oswal ReportAfter delivering a CAGR of 4%/18%/28% in revenue/Ebitda/PAT over FY21-25, we estimate them to clock a CAGR of 17%/22%/23% over FY25-28E. VA Tech Wabag Ltd.'s current order book of ~Rs 137 billion (4.2x FY25 revenue) and a strong bid pipeline of up to Rs 200 billion provide 15-20% revenue growth visibility. Greater focus on executing large-scale projects in the high-margin segments (engineering and procurement, operations and maintenance and Industrial) augurs well for the overall margins of the company. Outlook of strong free cash flow generation, net-cash status and expansion in return ratios make VA Tech’s scrip attractive at ~20x FY27E EPS on current market price. We initiate coverage on VA Tech with a Buy rating and a target price of Rs 1,900, based on 26x FY27E P/E (premium to historical average of 18x on improved outlook). We believe large order inflows and a significant margin expansion could fuel valuation re-rating in the near to medium term.Click on the attachment to read the full report:Indian Army Agniveer Result 2025 Soon: Check Expected Date And Steps To Download ScorecardDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.. Read more on Research Reports by NDTV Profit.