New Delhi, July 22 -- Motilal Oswal has initiated coverage on VA Tech Wabag with a 'buy' rating, citing the company's expanding order book, improving margins and return ratios, and strong free cash flow generation.

VA Tech Wabag is a leading, 100-year-old water technology company that offers end-to-end solutions in the design, construction, and operation of wastewater projects. The company has been consistently expanding its order book in recent years, driven by the growing global focus on water and waste management, a sector that involves removing contaminants from sewage or wastewater to make it recyclable, reusable, and environmentally safe.

The sector is gaining momentum due to increasing environmental regulations, rising water poll...