YTD Return 76%: Mid Cap Auto Ancillaries Stock Rises 12%, Net Profit Zooms 393.16%

Mid cap stock operating in auto ancillaries sector Varroc Engineering Ltd shares today witnessed a surge of nearly 12%. Current market price of Varroc Engineering share on BSE is Rs 526.00 per share with intraday gain of 11.54%. Varroc Engineering stock hit fresh 52-week high as well today and volume surged by more than 8.45 times. Varroc Engineering stock offered its shareholders return of 85% in last 1-year span. Check details below:

Varroc Engineering Stock Performance & Return: The stock's 52-week high price is Rs 543.05 per share and 52-week low price is Rs 239.80 per share, respectively. The company has a market capitalisation of Rs 8036.56 crore. Varroc Engineering shares soared 42% in last 3-months, gained 76% YTD, and offered a rally of 69% in last 2-years. In last 3-years, Varroc Engineering shares gained 75%. Varroc Engineering stock fell 28% in last 5-years.
Varroc Engineering Q2 Results: The company on November 8 declared its revenue for Q2 FY2024 at Rs 1893 crore as compared to Rs 1816 crore reported in the corresponding period of last year. Its net profit was announced at Rs 55.7 crore as compared to a net loss of Rs 19 crore for the same period of last year, up 393.16%.

Tarang Jain, CMD, Varroc said, "The geopolitical situation in Europe and the Middle East has created uncertainty in the global business environment. The interest rates may come under pressure if inflation goes up further due to a spike in oil prices. Despite these uncertainties in the global markets, we see a resilient and growing economy in India. The Indian economy has sustained its growth momentum in FY2024 so far.Though the urban demand has already picked up well, we are expecting that the rural demand will also pick up with the current festive season."

The company's revenue jumped by nearly 3% YoY despite sluggish growth in overseas markets amid holiday season in Europe. Meanwhile, financial performance witnessed growth in H1 FY2024 as Varroc pulled ahead some of the debt reduction initiatives to Q2 and brought down its net debt considerably by nearly Rs 271 crore in H1 FY24 bringing its Net Debt/Equity ratio to below 1X.

Disclaimer:

The stock just highlights the rally in shares and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.