This multibagger stock jumps 8%, has given nearly 400% return in 3 years

The Indian stock market has been volatile and is highly vulnerable to uncertainties in the global markets as even a small disturbance in the domestic or overseas environment makes way for a multiplier effect on Dalal Street. However, some companies have managed to dodge global uncertainties and perform exceptionally well, giving strong profit returns to their investors.

Retail investors are always on the lookout for such attractive stocks and keep an eye on marquee market investors as well as mutual funds that shuffle their portfolios, increasing or decreasing their stakes in such stocks.

One such stock in focus today is Va Tech Wabag Ltd, a leading water treatment company, focusing on the desalination of water for municipal and industrial users.

It is a small-cap company having a market capitalisation of Rs 2,767 crore, and its shares were seen trading 7.71 percent higher at Rs 446.8 per piece on the BSE at 2:01 pm on Wednesday.

The famous investor Rekha Jhunjhunwala, wife of late legendary investor Rakesh Jhunjhunwala, is among the top investors in Va Tech Wabag. According to the company’s March 2023 quarter shareholding pattern, Jhunjhunwala held an over 8 percent stake in Va Tech Wabag, equalling 50,00,000 equity shares.

The company’s shares have surged 87.37 percent in the past one year, while making its long-term investors rich, giving a tremendous return of a whopping 386.76 percent in the last three years.

The small-cap company’s stock has surged more than 35 percent so far in the ongoing year 2023. In the last three months, Va Tech Wabag’s stock has advanced 41.5 percent, and the share prices have increased 13.3 percent in the last one-month period.

Global brokerage firm Nomura has held its ‘Buy’ rating on the water treatment stock with a price target of Rs 480 per share.

VA Tech Wabag is a leading player in the water treatment industry with operations in several countries in the Middle East, Central and Eastern Europe, North Africa, China and SouthEast Asia regions. The company offers design, engineering, procurement, supply, installation and construction services regarding water treatment plants.