Varroc Engineering Ltd- A thread🧵🧵
It was incorporated in 1988,a global tier-1 automotive component group. It is engaged in the business of manufacturing & supplying auto components to a wide range of OEMs across the globe.
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It was incorporated in 1988,a global tier-1 automotive component group. It is engaged in the business of manufacturing & supplying auto components to a wide range of OEMs across the globe.
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Numbers- The Latest
Market Cap ₹ 6,992 Cr.
Current Price ₹ 458
Debt to equity 1.59
MCap/ Sales. 0.55
P. Holding 75.0 %
Pledged %. 0.00 %
Sales 12,728Cr
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Market Cap ₹ 6,992 Cr.
Current Price ₹ 458
Debt to equity 1.59
MCap/ Sales. 0.55
P. Holding 75.0 %
Pledged %. 0.00 %
Sales 12,728Cr
2/12
Brand Recognition
It is the second-largest Indian auto component group and a leading tier-1 manufacturer & supplier to Indian two-wheeler and three-wheeler OEMs
It is the sixth-largest global exterior automotive lighting manufacturer
Clients like Ford, Jaguar, Bajaj, Honda.
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It is the second-largest Indian auto component group and a leading tier-1 manufacturer & supplier to Indian two-wheeler and three-wheeler OEMs
It is the sixth-largest global exterior automotive lighting manufacturer
Clients like Ford, Jaguar, Bajaj, Honda.
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Product Portfolio
It designs,manufactures,& supply exterior lighting systems,plastic & polymer components, electrical-electronics components, & precision metallic components to OEM’s of 2W, 3W, & 4W Passenger Car, CV, 2-wheeler,3-wheeler, &off-highway vehicle directly worldwide
It designs,manufactures,& supply exterior lighting systems,plastic & polymer components, electrical-electronics components, & precision metallic components to OEM’s of 2W, 3W, & 4W Passenger Car, CV, 2-wheeler,3-wheeler, &off-highway vehicle directly worldwide
Product Wise Revenue- All nos for FY 20
Electrical & Lighting Auto Parts 51%
Steel Forged Products 19%
Aftermarket Auto Parts 13% in FY20, which was 9.8% in FY19.
Polymer Auto Parts 9% in.
Engine Valves 5% in.
Vehicle Type Wise Revenue
4 Wheeler: 63% .
2/3 Wlr: 34%
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Electrical & Lighting Auto Parts 51%
Steel Forged Products 19%
Aftermarket Auto Parts 13% in FY20, which was 9.8% in FY19.
Polymer Auto Parts 9% in.
Engine Valves 5% in.
Vehicle Type Wise Revenue
4 Wheeler: 63% .
2/3 Wlr: 34%
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Geography-Wise Revenue
Europe- 49% in FY20, which was 42% in FY18.
India- 33% in FY20, which was 35% in FY18
North America- 15% in FY20, which was 22% in FY18
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Europe- 49% in FY20, which was 42% in FY18.
India- 33% in FY20, which was 35% in FY18
North America- 15% in FY20, which was 22% in FY18
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Expansion
In FY20, borrowing has increased by 74.9% to Rs 4,255 Cr due to an increase in fund requirement for capex and working capital financing.
It has acquired Turkey based interior and exterior lighting manufacturer viz Sa-Ba in FY19 to increase its global presence
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In FY20, borrowing has increased by 74.9% to Rs 4,255 Cr due to an increase in fund requirement for capex and working capital financing.
It has acquired Turkey based interior and exterior lighting manufacturer viz Sa-Ba in FY19 to increase its global presence
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In FY19, it has set up a new manufacturing plant in Brazil,to serve the South American market, and in Morocco, to serve the Southern European and North African markets
Manufacturing plants in Poland & Chennai to serve key global OEMs & is expected to start production during FY21
Manufacturing plants in Poland & Chennai to serve key global OEMs & is expected to start production during FY21
Research & Development
It has 16 R&D centers spread across India, China, USA, Mexico, Germany, Italy, Romania, and Poland. It has 185 Patents globally.
The Company has spent 0.5% of its revenue in R&D in FY20.
It has 16 R&D centers spread across India, China, USA, Mexico, Germany, Italy, Romania, and Poland. It has 185 Patents globally.
The Company has spent 0.5% of its revenue in R&D in FY20.
Acquisition
The Company has acquired CarIQ Technologies Pvt. Ltd in FY20 with 74% ownership. It is a leading integrated connected vehicle solution provider to OEMs, fleet owners, and insurance companies.
The Company has acquired CarIQ Technologies Pvt. Ltd in FY20 with 74% ownership. It is a leading integrated connected vehicle solution provider to OEMs, fleet owners, and insurance companies.
Past Few Investor Presentation Links
May 2022
bseindia.com
Feb 2022
bseindia.com
Nov 2022
bseindia.com
Concall Links:-
June 2021
varroc.com
Feb 2021
varroc.com
May 2022
bseindia.com
Feb 2022
bseindia.com
Nov 2022
bseindia.com
Concall Links:-
June 2021
varroc.com
Feb 2021
varroc.com
My Take:-
Valuations Look Attractive at 0.5 Times Sales, Looks Like Worst for the Business Is Behind, Deleveraging can help in free cashflows if they are able to turn the corner.
Stock is trading Near Breakout Zone after 550 Days Consolidation. Volumes are Supportive.
Valuations Look Attractive at 0.5 Times Sales, Looks Like Worst for the Business Is Behind, Deleveraging can help in free cashflows if they are able to turn the corner.
Stock is trading Near Breakout Zone after 550 Days Consolidation. Volumes are Supportive.
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