52-week high alert: This multibagger auto ancillary company enters into power purchase agreement with AMP Energy C&I Six Pvt Ltd & AMP Energy C&I Five Pvt Ltd!
The stock gave multibagger returns of over 100 per cent from its 52-week low.
On Wednesday, shares of Varroc Engineering Ltd surged 2.72 per cent to make a new 52-week of Rs 519 per share from its previous closing of Rs 505.25. At the closing bell, shares of the company were trading at Rs 494.70 per share, down 2.09 per cent.
The company’s material subsidiary viz. Varroc Polymers Ltd has entered into Power Purchase Agreement (PPA) with AMP Energy C&I Six Private Limited and AMP Energy C&I Five Private Limited (hereinafter referred to as SPVs) respectively, for establishing renewable power plants in Karnataka and Tamil Nadu having captive capacity of 30 MWp and 21 MWp respectively, under captive power scheme and further in process of acquiring 1 per cent and 3 per cent stake in the said SPVs respectively.
According to the Quarterly Results, the net sales increased by 10.08 per cent to Rs 1,792.41 crore and operating profit increased by 48 per cent to Rs 188.17 crore in Q1FY24 compared to Q1FY23. The company reported a net profit of Rs 27.98 crore in Q1FY24 compared to a net loss of Rs 79.64 crore in Q1FY23.
The company received a new lifetime order win worth Rs 955.20 crore in Q1FY24 wherein Rs 390.5 crore order is received from Bajaj Group and the rest 564.7 crore is received from other customers.
Varroc Engineering Ltd incorporated in 1988, is the flagship company of the Aurangabad-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe.
The company has a market cap of over Rs 7,500 crore. As of June 2023, promoters hold the largest stake in the company, with 75 per cent ownership. DIIs own 12.21 per cent, followed by FIIs at 5.07 per cent. The remaining 7.72 per cent is owned by the public.
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 239.80 per share. Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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