Surging for the second straight session, an ace investor Rakesh Jhunjhunwala-backed this water treatment company Va Tech Wabag shares jumped around 13 per cent in the two sessions since the announcement of the July-September earnings for the financial year 2021. 

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The stock on Tuesday has gained over 5 per cent to day’s high level of Rs 373.5 per share on the BSE intraday trade. The counter on August 3, 2021, hit a 52-week high of Rs 404.25 per share. 

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An ace Investor Rakesh Jhunjhunwala, who is also termed as the Big Bull of the Indian stock market along with his wife Rekha Jhunjhunwala holds over an 8 per cent stake (5 lakhs shares) in the company, as per the September-ended shareholding pattern available on the BSE.    

The investment of the Jhunjhunwala couple jumped by over 133 per cent in 13 months, as they had subscribed the company’s shares via preferential issue at a price of Rs 160 per share on September 29, 2020. 

The counter has been surging since the second-quarter results announcement, as the company’s profit jumped over 57 per cent year-on-year to Rs 262 crore as compared to Rs 167 crore in the same period a year ago. 

While its revenue from operations gained 12.4 per cent to Rs 684 crore as against Rs 608 crore in the corresponding quarter of the last fiscal, driven by continued focus on execution. Besides, “operating margins of Va Tech Wabag improved in Q2 consequent to execution pace and project mix”, it said. 

The company provides a range of solutions offered in water space such as sewage water treatment, drinking water treatment, Industrial water, and wastewater treatment, Desalination, and Recycling.  

The company has generated net cash of Rs 1570 crore during the quarter. It said in an investor presentation, “Net cash used in operations towards expediting pace of execution, reflecting in improved topline and results.”