BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Varroc Engineering Ltd. displayed decent performance in Q1 FY24. Revenue grew 6 % QoQ to Rs 17.92 billion led by a sequential recovery in volume from Bajaj Auto Ltd. and incremental revenue from new business in the electric vehicles segment.
Ebitda grew 11 % QoQ, margin expanded 42 basis points QoQ to 9.3%.
Business outlook- Management is confident to outperform industry growth led by the introduction of new products (like electronics and EVs) and new orders wins in the lighting, metallic, and polymer business.
Varroc Engineering started mass production of both the traction motor and controller for Bajaj Auto (value 15,000 per vehicle for both put together) and targeting EV revenue of Rs 10 billion by FY25E.
Valuation- We see a sharp revival in revenue and profitability in medium term led by incremental revenue from new products, cost cutting exercise and reduction in interest cost.
We maintain 'Buy' with target price Rs 424 (based on 19 times FY25E earnings per share).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2022-06/5f12df4c-98fa-4c2c-b671-f3129da5cd45/judges_gavel__is_seen___Source_freepik_.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Insolvency Resolution Process Continues To Steadily Chug Along: CareEdge
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-04/c84f53df-0720-43fc-a1eb-2be6a510b353/image_compa.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
L&T Technology - Growth Aspiration Overstretched: Dolat Capital
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-08/f913e355-f61b-4384-b717-b86bb4b7a5cf/Raymond_website.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Raymond Lifestyle - On A Transformative Journey: Motilal Oswal
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2022-11/5636107b-e858-40aa-bcce-cd5eb40db7bf/Upset_forging_machininig_line_at_Varroc_Engineering_Ltd___Source_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Varroc Engineering Q1 Review - Sub-10% Ebitda Margin Trend Continues; Downgrade To Hold: ICICI Securities
![timelogo](/images/amp-time.png)