Chennai-based water treatment company VA Tech Wabag Ltd. is in focus today. VA Tech is a multibagger stock that has rallied over 1000% over the last five years. The scrip has delivered a negative return of 7% on a year-to-date basis in 2025.

In the year so far, the share price recorded a high of Rs 1,688.50 on Jan. 3 before falling to the year's low of Rs 1,114 on Jan. 28.

VA Tech Wabag is a global company that specialises in water and wastewater treatment solutions. They offer design, engineering, procurement, and construction services for various water and wastewater treatment plants, as well as operational management and maintenance services. Their work spans across municipal, industrial, and infrastructure sectors, focusing on sustainable solutions.

Shares of the company have risen 1345.07% in the last five years, and 540% in the last three years.

VA Tech Wabag's consolidated net profit rose 11.6% on the year to Rs 70 crore from Rs 63 crore.

VA Tech Wabag's revenue rose 15.1% on the year to Rs 811 crore from Rs 704 crore. Operating profit rose 1.5% on the year to Rs 100 crore from Rs 99 crore.

Meanwhile, the water supply and management business margin fell 164 basis points on the year to 12.4%, compared to 14.04% in the corresponding period of the previous year.

All seven analysts tracking the company have a buy call on the counter as per Bloomberg data. The 12-month consensus return potential of the stock is 21.6%.

Sunidhi Securities & Finance has the highest target price on the stock, at Rs 2,065 apiece. This is followed by Ashika Stock Broking, Share India Securities and ICICI Direct, all of who see share price rising over Rs 1,900 in the next 12 months.

VA Tech Wabag is expected to maintain an Ebitda of 13% to 15% in the medium term, according to Chief Financial Officer Skandaprasad Seetharaman.

"There's nothing to indicate that we cannot be a continually operating cash flow generating company," he told NDTV Profit in a conversation. "With the medium-term outlook, we are looking at moving forward to the 15% to 20% CAGR, 13% to 15% Ebitda, remaining net-cash positive and delivering a 15% and over ROE."