Rekha Jhunjhunwala stock VA Tech Wabag: ₹2,400 cr Saudi project cancelled - Should you buy after 18% rise in 6 months?

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Rekha Jhunjhunwala portfolio stock VA Tech Wabag said Saudi Water Authority cancelled its approximately ₹2,400 crore Yanbu desalination project for internal reasons.

Rekha Jhunjhunwala portfolio stock VA Tech Wabag shares are likely to remain in focus on Monday, November 16, after the company disclosed that a major desalination project in Saudi Arabia, valued at approximately ₹2,400 crore, had been cancelled by the customer, Saudi Water Authority, citing internal reasons.

Rekha Jhunjhunwala holds an 8.0% stake in VA Tech Wabag Ltd as of September 2026.

The shares ended 2% lower at ₹2,040.10 apiece on the BSE on Friday. The stock had touched a 52-week high of ₹2,320 in September 2026 and a 52-week low of ₹1,033.95 in January 2026. Despite the recent decline, it has gained 3.5% in one month, 8% in three months, 48% in six months, 45% in one year and 506% over five years.

In an exchange filing on Saturday, November 14, VA Tech Wabag said it had received the award in July 2025 to execute a 300 million litres per day (MLD) mega seawater desalination plant at Yanbu, Saudi Arabia. Following the award, the company completed the required formalities and executed the contract, which was submitted to the customer for counter-signature and formal commencement of the project.

However, Saudi Water Authority subsequently notified all tender participants through the Kingdom's Etimad electronic government procurement and tendering platform that the tender had been cancelled due to internal reasons attributable to the customer.

Wabag said it was approaching the authority to obtain further clarity on the reasons for the cancellation and determine the next course of action.

The project covered the design, engineering, supply, construction and commissioning of a 300 MLD desalination facility at Yanbu on Saudi Arabia's west coast. Its contract value was approximately $272 million, equivalent to 1.019 billion Saudi riyals or around ₹2,400 crore.

The development follows a similar setback in December 2024, when the Saudi Water Authority cancelled another 300 MLD desalination project in the country.

VA Tech Wabag reported revenue of around ₹1,000 crore and…

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