Fund Manager Summary
The fund managers believe that Vysarn Ltd presents a compelling investment opportunity due to its unique positioning within the hydrogeological sector. In their opinion, Vysarn is much more than a traditional drilling business, as it services tier-1 iron ore miners in the Pilbara, and is expected to significantly outgrow its drilling peers. With forecasts indicating a 20% EBITDA growth and a projected CAGR of 16% from FY24 to FY26, Vysarn's diversified business model, which includes Pentium Water and Project Engineering, is likely to enhance its earnings stability. The management's strategy to double shift rigs and expand production capacity further supports this growth trajectory. Overall, the fund managers assert that Vysarn deserves a significant rerating given its predictable cash flows and reduced cyclicality compared to its peers.
Source: Trading View
Commentary From The Managers
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Blackwattle Investment Partners
31 Oct 2025
$0.65
Summary
- Vysarn (+15.2%) is a vertically integrated, end-to-end water services company.
- Provides upstream water and environmental solutions across resources, infrastructure, and utilities sectors.
- Operations include hydrogeological drilling, water consultancy, and wastewater services.
- Shares gained in October as investors recognized expanding project pipeline on both East and West coasts.
- Successfully evolved into a fully integrated “whole-of-life” water-services provider.
- This strategic transition positions Vysarn to capture a broader share of the growing demand for sustainable water management solutions nationwide.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Blackwattle Investment Partners
31 Oct 2025
$0.65
- Vysarn (+15.2%) is a vertically integrated, end-to-end water services company.
- Provides upstream water and environmental solutions across resources, infrastructure, and utilities sectors.
- Operations include hydrogeological drilling, water consultancy, and wastewater services.
- Shares gained in October as investors recognized expanding project pipeline on both East and West coasts.
- Successfully evolved into a fully integrated “whole-of-life” water-services provider.
- This strategic transition positions Vysarn to capture a broader share of the growing demand for sustainable water management solutions nationwide.
Summary
Acorn Capital
31 July 2025
$0.51
- Expansion stage of development for Vysarn Ltd (VYS.ASX).
- Vertically integrated national provider of water-management services, delivering end-to-end solutions.
- Services core parts of the water management value chain through:
- Advisory – Pentium Water and CMP Consulting focusing on groundwater and East Coast infrastructure.
- Engineering capabilities – Project Eng and Waste Water Services for aquifer recharge and treatment plants.
- Industrial Solutions – Pentium Test Pumping and Pentium Hydro for bore field construction.
- Attractive core business aligned with long-term water thematic, supporting strong earnings growth.
- Vysarn Asset Management (VAM) presents upside optionality to control, convey, and supply water in the Pilbara.
Summary
Mereweather Capital
31 July 2025
$0.51
- Mereweather Capital notes Vysarn Limited (VYS) has guided to revenue of $106.5m, representing a 40% increase.
- The company anticipates a net profit before tax of $15m, which is up 36%.
- Similar to AHC, the headline figures are enhanced by acquisitions.
- Encouragingly, VYS’s core hydrogeological drilling segment showed significant recovery in the second half.
- Management did not provide formal guidance for the new financial year, but indicated that the strong second half recovery and full-year contributions from acquisitions would likely lead to a further increase in profits.
- Running the second half numbers suggests VYS is trading at approximately 18x earnings, which is not particularly cheap given the current business context.
- However, Mereweather Capital emphasizes VYS has considerable blue-sky potential from its emerging Asset Management segment, particularly in owning and tolling water in the Pilbara.
Summary
Cerutty Macro Fund
28 July 2025
$0.53
- Cerutty Macro Fund has a significant investment in ASX-listed micro cap Vysarn Ltd, a provider of water solutions for mining companies.
- Vysarn is notably associated with major clients such as Rio Tinto and Fortescue.
- The company is led by James Clement, a former AFL player, which adds a unique leadership aspect.
- Over the past year, Vysarn's shares have experienced a notable increase of 49%.
- Cerutty Macro Fund continues to hold this investment due to its strong performance and strategic position in the mining sector.
Summary
Mereweather Capital
28 Feb 2025
$0.44
- Mereweather Capital updates on Vysarn Ltd (VYS) following profit guidance exceedance at the recent AGM.
- The market initially reacted positively but saw a sell-off later in the month.
- Despite a headline beat, further analysis revealed challenges within the Industrial segment.
- Profitability in the Industrial segment was approximately cut in half due to lower utilization and cautiousness among large miners.
- Declines in lithium and nickel prices adversely affected the Industrial segment's performance.
- Conversely, the Technology segment reported a profit before tax of $3.2m, providing a positive offset.
- VYS's strategy has shifted earnings focus from the cyclical Industrial segment to the high-margin, capital-light Technology and Consulting segments.
- Management has set an annualized second half profit guidance of $14m.
- VYS is currently trading at around 15x earnings with potential upside to the guidance.
- Mereweather Capital continues to hold due to the promising profitability in the Technology segment and strategic shifts.
Summary
Saville Capital
30 Sept 2024
$0.50
- Vysarn (VYS) has announced an acquisition of CMP Consulting Group Pty Ltd for $24m cash and 10m VYS shares.
- Deferred consideration may add up to 30m VYS shares based on CMP meeting EBITDA targets.
- The acquisition aims to diversify Vysarn away from its capital intensive water drilling business.
- The deal shows a financially compelling upfront EV/EBITDA multiple of 4.6x, excluding deferred shares, with expected earnings per share accretion of over 20%.
- Vysarn raised approximately $38m through an institutional placement at $0.40/share to help fund the acquisition.
- The capital raising has increased the market cap and liquidity of Vysarn, boosting institutional interest.
- Saville Capital continues to hold Vysarn as a core investment following its strong performance since initial acquisition at $0.15/share.
Summary
Saville Capital
31 Aug 2024
$0.41
- VYS reported strong FY24 results, with revenue up 17%, EBITDA up 31%, and NPAT up 100% compared to the previous corresponding period.
- Company has begun establishing its Water Asset Management business to manage groundwater resources for regional water supply in Western Australia.
- Growth has been primarily driven by the iron ore sector, but VYS is now exploring diversified opportunities in other water services and commodities.
- Acquisition of Waste Water Services (WWS) for $7.5m, indicating an unaudited EV/EBITDA multiple of 3.27x and expected EPS accretion of over 20%.
- Immediate organic growth initiatives for WWS have been identified, targeting wastewater treatment plants, increased rental units, and municipal water treatment projects.
Summary
Saville Capital
31 May 2024
$0.31
- Saville Capital recognizes VYS's strategic partnership with the Kariyarra Aboriginal Corporation, facilitating mutual interests in water resources.
- The Joint Resource Agreement (JRA) establishes Vysarn Asset Management as an equal partner with KAC in managing and selling water resources.
- VYS will act as the manager and marketer for water quantities developed through the joint venture.
- This JRA is viewed as a key catalyst for VYS, potentially unlocking significant earnings and valuation improvements.
- There exists substantial unmet demand for water in the region, offering attractive pricing and economics for the business.
Summary
Cerutty Macro Fund
30 Nov 2023
$0.27
- Cerutty Macro Fund views Vysarn Ltd as significantly more than a traditional drilling business.
- The company uniquely services the drilling and dewatering needs of tier-1 iron ore miners in the Pilbara region.
- Historically, Vysarn has been priced similarly to other drilling companies, but Cerutty Macro Fund believes it deserves a higher valuation.
- Vysarn is projected to experience substantial growth and diversification of earnings over the next few years.
- The business comprises five distinct verticals under a water management thematic, enhancing its revenue potential.
- Pentium Hydro, Vysarn's core business, has shown significant growth due to the ~65% of the Pilbara’s resource being below the water table.
- Management anticipates 3 rigs contracted on a double shift basis by FY24, contributing an additional ~15% to revenue.
- There is a plan to ramp up to 6 double-shifting rigs by FY26, indicating robust near-term growth.
- Pentium Water has rapidly grown from zero revenue in FY22 to $4.1m in FY23.
- Demand for Managed Aquifer Recharge (MAR) solutions is increasing among clients to meet sustainability standards.
- Pentium Test Pumping is capitalizing on the growth of the MAR business despite earlier constraints in capacity.
- The newly announced Vysarn Asset Management unit aims to offer further earnings diversification.
- Vysarn currently trading at ~4.2x EBITDA multiple presents strong asymmetric return potential relative to the industry average of ~3.15x.
- Vysarn's core services are less cyclical compared to traditional drilling businesses, enhancing profit stability.
- Forecasts show Vysarn's EBITDA growth at ~20%, in stark contrast to its drilling peers at ~2.85%.
- Cerutty Macro Fund believes Vysarn deserves a significant rerating due to its predictable cash flows and growth strategy.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"In a landscape of low multiples, Vysarn appears poised to redefine expectations, leveraging its unique water management capabilities. As it diversifies and scales, the potential for significant rerating seems inevitable, positioning it far beyond a mere drilling business."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Vysarn Ltd (ASX:VYS)?
Fund managers including Cerutty Macro Fund, Saville Capital, Mereweather Capital, Acorn Capital and Blackwattle Investment Partners have invested in Vysarn Ltd (ASX:VYS).
Why do fund managers invest in Vysarn Ltd?
Fund managers are investing in Vysarn Ltd due to its unique position as a hydrogeological service provider for tier-1 iron ore miners in the Pilbara, which offers significant growth potential beyond traditional drilling businesses. With a forecasted EBITDA CAGR of approximately 16% from FY24 to FY26, Vysarn is expected to outpace its peers, driven by strategic initiatives like double-shifting rigs and expanding into five distinct business verticals, including Managed Aquifer Recharge (MAR) technology. This diversification, alongside predictable cash flows and a lower sensitivity to resource market cycles, positions Vysarn for substantial future growth and a favorable revaluation in the market.
What happened to Vysarn Ltd (ASX:VYS)?
Fund managers are investing in Vysarn Ltd due to its position as a vertically integrated water-management services provider, delivering comprehensive solutions across various sectors, including resources and utilities. The company is experiencing strong earnings growth driven by a significant recovery in its core hydrogeological drilling segment and the successful integration of recent acquisitions. With a projected revenue increase of 40% and a robust project pipeline, Vysarn is well-positioned to capitalize on the growing demand for sustainable water management solutions, particularly through its Asset Management segment in the Pilbara, which offers substantial upside potential.