On Wednesday this mid-cap stock jumps more than 2.5% after the company’s subsidiary entered into an agreement. The stock has given 96% returns in six months and 51% returns in one year. Currently, the company shares are trading 4.3% below the 52-week high and above the 50-day and 200-day moving averages.
Varroc Engineering Ltd
The company belongs to a mid-cap category with a market capitalisation of Rs. 7,653 Cr. On Wednesday at 1:30 p.m., shares were trading 1.5% down at Rs. 497.60 on BSE.
According to the company filing, The company’s material subsidiary Varroc Polymers Limited (VPL) has entered into a Power Purchase Agreement with AMP Energy C&I Six Pvt Ltd and AMP Energy C&I Five Pvt Ltd (referred to as SPVs) respectively, for establishing Renewable Power Plants in Karnataka and Tamilnadu having a capacity of 30 MWp and 21 MWp respectively, under the Captive Power Scheme.
VPL is also in the process of a 1% stake in AMP Energy C&I Six for Rs. 40 lakhs and a 3% stake in AMP Energy C&I Five for Rs. 80 lakhs.
The company’s revenue grew by 13% from Rs. 934.42 Cr in Q1 FY23 to Rs. 1,056.6 Cr in Q1 FY24 and the company reported a net loss of Rs. 13.52 Cr in Q1 FY24 against a loss of Rs. 5.88 Cr in Q1 FY23.
As per the latest shareholding information, Promoters hold 75%, FIIs hold 5.07%, DIIs hold 12.21% and the public hold a 7.72% stake in the company.
Varroc Engineering Limited is a manufacturer and supplier of automobile components. It designs, develops and manufactures starter and wiper motors, alternators, switches, lamps, digital instruments, clusters, instrumental panels, door trims, mirror assemblies, and gears.
Written by Sheshadri N
