Turnaround story: Heavy buying witnessed in this auto ancillary stock; win orders worth Rs 955.20 crore in Q1FY24!
As of June 2023, promoters hold the largest stake in the company, with 75 per cent ownership.
On Wednesday, one of the Top Gainers on BSE, shares of Varroc Engineering Ltd surged 7.33 per cent to make a new 52-week of Rs 423.40 per share from its previous closing of Rs 394.50. At the closing bell, shares of the company were trading at Rs 418.25 per share, up 6.02 per cent with a spurt in volume by more than 2.16 times on BSE.
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 6,300 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.
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The stock is up by 26 per cent in just 1 month and over 60 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.