52-week high alert: Heavy buying witnessed in this auto ancillary stock as the company acquires 26 per cent stake in 3 SPVs in Maharashtra!
The stock is up by 32 per cent in just 1 month and over 80 per cent in 6 months.
On Thursday, one of the Top Gainers on BSE, shares of Varroc Engineering Ltd surged 8 per cent to make a new 52-week of Rs 451.30 per share from its previous closing of Rs 418. At the closing bell, shares of the company were trading at Rs 443.3 per share, up 6.05 per cent with a spurt in volume by more than 1.54 times on BSE.
The sudden rise in the stock price is due to the company informing that along with its subsidiaries viz. Varroc Polymers Limited and Durovalves India Private Limited have entered into Power Purchase Agreement with AMP Energy C&I Twenty One Private Limited, AMP Energy C&I Twenty Private Limited and AMP Energy C&I Twenty Two Private Limited (hereinafter referred to as SPVs) respectively, for acquisition of 26 per cent stake up to Rs 13,11,00,000 for establishing Renewable Power Plants in Maharashtra having combined captive capacity of 33.10 MWp / 22.01 MWac, under Captive Power Scheme.
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.
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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 6,700 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 is up by 32 per cent in just 1 month and over 80 per cent in 6 months. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.