Turnaround Story: Multibagger Auto Ancillary Stock Rallies with Heavy Volumes, Hits 52-Week High; Must-Watch

The shares of the company have delivered a return of over 120 per cent to its shareholders.

This Large-Cap auto ancillary company, established in 1988, serves as the flagship entity of the Varroc Group, headquartered in Aurangabad. It is a renowned global tier-1 automotive component conglomerate. The company specializes in the manufacturing and distribution of automobile components to various OEMs worldwide. Today the company experienced a significant surge in its share price.

Today, the company’s stock rallied over 12 per cent, hitting a 52-week high. On the BSE, trading volume saw a significant increase, surging over 8 times. At the start of the trading session, Varroc Engineering Ltd opened at Rs 630 per share, compared to the previous day's closing of Rs 623.10 per share on the BSE. As of the time of writing, shares are currently trading at Rs 687.60 per share on the BSE. The current market capitalization of Varroc Engineering stands at Rs 10,505 crore, and the stock has generated an impressive multibagger return of around 120 per cent in just 1 year. It is among the Top Gainers today.

Stock Price Chart (Weekly) of Varroc Engineering

Financial Performance of Varroc Engineering

According to the Quarterly Results, in the fourth quarter of FY24, the company achieved a revenue of Rs 1,975 crore. The operating profit for Q4 FY24 reached Rs 221 crore, resulting in an operating profit margin of 11 per cent. The net profit for Q4 FY24 amounted to Rs 58 crore. Reviewing the annual performance, the company has shown significant turnaround progress, reporting a revenue of Rs 7,552 crore in FY24, compared to Rs 6,863 crore in FY23. The operating profit for FY24 reached Rs 774 crore. Compared to the losses incurred over the past three years, the company reported a profit of Rs 532 crore.

Regarding the shareholding pattern, the promoters possess 75 per cent of the company, while FIIs and DIIs hold 4.22 per cent and 12.15 per cent, respectively. Public or retail investors hold the remaining 8.64 per cent.

Investors must keep this large-cap multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.