Varroc Engineering shares gave up morning gains to trade flat after jumping 2.9 percent, hitting a fresh 52-week high on October 4. The company’s subsidiary Varroc Polymers entered into a power purchase agreement to source power from AMP Energy C&I Six and AMP Energy C&I Five (SPVs).
These SPVs will establish renewable power plants in Karnataka and Tamil Nadu. The plants will have a captive capacity of 30 MWp and 21 MWp respectively, under the captive power scheme. Varroc Polymer is also in the process of acquiring a 1 percent stake in AMP Energy C&I Six for Rs 40 lakh and a 3 percent stake in AMP Energy C&I Five for Rs 80 lakh.
According to a filing with the exchanges, this will “enable Varroc Polymers Limited to source solar power from the said SPVs for its manufacturing plants located in the States of Karnataka and Tamil Nadu.”
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As of 10.30 a.m., Varroc Engineering shares were trading at Rs 505.40, mildly higher by 0.11 percent. In comparison, the domestic market was trading lower, with the benchmark index Nifty 50 trading at 19,407.65, down by 0.62 percent.
Shareholding, share price movement and technical view
Compared to the Nifty's one-year run at 14.9 percent, Varroc Engineering gained 55.2 percent in the same time period. Most of the yearly gains came in over the past six months, as the stock soared 98.94 percent during the period, almost doubling investors' gains.
The counter's RSI stands at 69.9, indicating that the stock is neither oversold nor overbought. Additionally, there is low volatility in the stock, as suggested by the one-year beta of 0.53. Since the stock hit a fresh 52-week high intraday on October 4, it is also trading above all key moving averages.
According to the June quarter shareholding data, the promoters have maintained a 75 percent stake in the firm over quarters. FIIs held 5.1 percent in the firm, while DIIs owned 12.2 percent. The public had a 7.7 percent stake in Varroc Engineering.
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