This water treatment company is turning the corner. Should you consider it?

It was only four months ago when Bangalore was facing a 20 per cent daily water shortage. Go towards the North and you will find that severe groundwater depletion in key agricultural states is business as usual. Unsurprisingly, the alarming threat of water scarcity has quickly pulled the water treatment sector up on the government's priority list. Which brings us to the industry's market leader VA Tech Wabag benefitting from the government focus. VA Tech is among the world's top five largest desalination (of sea water) players. The company that primarily gets orders from government entities provides drinking water treatment, municipal & industrial wastewater treatment and sludge treatment. Present in over 25 countries, it earned 47 per cent of its FY24 revenue from exports. In terms of the business, VA Tech primarily builds water treatment facilities from the ground up as an engineering, procurement & construction player (EPC). It made 83 per cent of its FY24 revenue from the EPC segment. The rest was earned from the operation & maintenance (O&M) business where the company runs and maintains