ICICI Securities has buy on Varroc Engineering, target price Rs 537
As per management the China plants were under extended shutdown in February and are now increasing utilisations, said ICICI Securities.
By ETMarkets.com | Updated:
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ICICI Securities has a buy rating on Varroc Engineering in the long term with a target price of Rs 537. The stock ended down 14.3% at Rs 287 on Thursday while the BSE Sensex closed 2919.26 points down (-8.18%) at 32,778.14.
Company Financials
For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 2803.81 crore, up 3.72 % from last quarter sales of Rs 2703.23 crore and down -5.12% from last year same quarter sales of Rs 2954.99 crore. The company has reported net profit after tax of Rs 21.68 crore in the latest quarter.
Investment Rationale
As per management the China plants were under extended shutdown in February and are now increasing utilisations, said ICICI Securities. The EU facilities are witnessing increased disruptions, although production schedules are still optimal increased costs due to employee overtime and higher freight charges could have near-term impact on margins lower, said ICICI Securities.
Company Financials
For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 2803.81 crore, up 3.72 % from last quarter sales of Rs 2703.23 crore and down -5.12% from last year same quarter sales of Rs 2954.99 crore. The company has reported net profit after tax of Rs 21.68 crore in the latest quarter.
Investment Rationale
As per management the China plants were under extended shutdown in February and are now increasing utilisations, said ICICI Securities. The EU facilities are witnessing increased disruptions, although production schedules are still optimal increased costs due to employee overtime and higher freight charges could have near-term impact on margins lower, said ICICI Securities.
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