Varroc Group ventures into renewable energy with 26% stake in Maharashtra Power Plants: Stock jumps 6%!

On September 07, 2023, the shares of Varroc Engineering Limited dazzled the eyes of investors with an impressive surge of 6.05%. Additionally, the stock hits the fresh 52-week high mark of Rs 451.30 apiece on BSE. Furthermore, the scrip witnessed a spurt in volume by more than 1.54 times. The company’s current market capitalisation is Rs 6,773.02 crore.

On the technical front, as of September 07, 2023, the stock’s 200-day moving average (DMA) stood at Rs 328.18, while the 50-DMA was observed at Rs 374.85. With the current price at Rs 443.30 per share on BSE. In the recent crossover, the 50-DMA has surpassed the 200-DMA, signalling a robust and sustained upward rally over the long term.

Founded in 1988, Varroc Engineering Ltd serves as the flagship entity of the Varroc Group, headquartered in Aurangabad. As a prominent global tier-1 automotive component group, Varroc specializes in the manufacturing and distribution of automobile components to a diverse array of OEMs worldwide.

Today was a remarkable day for the company as they made an acquisition, details below:

The company, along with its subsidiaries, Varroc Polymers Limited and Durovalves India Private Limited, has signed a 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 (referred to as “SPVs”).

This agreement involves acquiring a 26% stake in these SPVs to develop Renewable Power Plants in Maharashtra, with a combined captive capacity of 33.10 MWp / 22.01 MWac, under the Captive Power Scheme.

The company’s product mix spans various categories as: Notably, Polymer Products make up 29.6%, followed closely by Electrical & Lighting Auto Parts at 28.8%, showcasing a focus on electrical and automotive lighting components. Lighting products contribute 17.7%, while Metallic Products represent 15.3%. The “Others” category adds 7.2%, and Electrical components account for 1.4%.

The recent acquisition is poised to boost the company’s revenue and overall performance, indicating potential growth on both fronts.

The stock has witnessed significant buying activity surging more than 59% in the last 2 years.

Keep a close eye on this trending micro-cap stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions. On September 07, 2023, the shares of Varroc Engineering Limited dazzled the eyes of investors with an impressive surge of 6.05%. Additionally, the stock hits the fresh 52-week high mark of Rs 451.30 apiece on BSE. Furthermore, the scrip witnessed a spurt in volume by more than 1.54 times. The company’s current market capitalisation is Rs 6,773.02 crore.

On the technical front, as of September 07, 2023, the stock’s 200-day moving average (DMA) stood at Rs 328.18, while the 50-DMA was observed at Rs 374.85. With the current price at Rs 443.30 per share on BSE. In the recent crossover, the 50-DMA has surpassed the 200-DMA, signalling a robust and sustained upward rally over the long term.

Founded in 1988, Varroc Engineering Ltd serves as the flagship entity of the Varroc Group, headquartered in Aurangabad. As a prominent global tier-1 automotive component group, Varroc specializes in the manufacturing and distribution of automobile components to a diverse array of OEMs worldwide.

Today was a remarkable day for the company as they made an acquisition, details below:

The company, along with its subsidiaries, Varroc Polymers Limited and Durovalves India Private Limited, has signed a 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 (referred to as “SPVs”).

This agreement involves acquiring a 26% stake in these SPVs to develop Renewable Power Plants in Maharashtra, with a combined captive capacity of 33.10 MWp / 22.01 MWac, under the Captive Power Scheme.

The company’s product mix spans various categories as: Notably, Polymer Products make up 29.6%, followed closely by Electrical & Lighting Auto Parts at 28.8%, showcasing a focus on electrical and automotive lighting components. Lighting products contribute 17.7%, while Metallic Products represent 15.3%. The “Others” category adds 7.2%, and Electrical components account for 1.4%.

The recent acquisition is poised to boost the company’s revenue and overall performance, indicating potential growth on both fronts.

The stock has witnessed significant buying activity surging more than 59% in the last 2 years.

Keep a close eye on this trending micro-cap stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

2 Likes