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VARROC ENGINEERING LIMITEDVARROC ENGINEERING LIMITEDVARROC ENGINEERING LIMITED

VARROC ENGINEERING LIMITED

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VARROC trade ideas

VARROC ENGINEERING - TREND IS CHANGINGFUNDAMENTALS Varroc belongs to auto ancilliary sector. One of the strongest OEM player to ride this bull run on auto sectors. Ready for EV and had rolled out a lot of stuff for 2 wheelers already. Engine Valves, Lighting, Forging, ADAS ; you just name it and they make that. The company is not only catering to Indian markets but have manufacturing setup outside india as well for global business.. One of the key points to note is that Varroc has very low public float around 8%. 75% with promoters, 5% with FIIs, and 12% with DIIs (MFs mainly) While things went bit haywire post 2019 and company's growth went sideways to negative, it looks like they are back on track. The current market cap is just under 8500 Crores (At cmp 555) while the Enterprise Value is value is already above 9600 Crores. PE ratio is on a higher side amongst the peers but that would get adjusted with the expected rise in sales and underlying profits. Cash flows of the company has also significantly improved. Company has been taking initiative to lower down it's debt and its net debt to EBITDA had improved significantly (WALK the TALK). While some business has seen some dip in European markets, the overall order book is very healthy and the results of all the initiatives shall reflect in the financials in next couple of years. TECHNICAL On technical charts it has broken out of 2019-2020 levels which it attempted to touch base in 2022 and recently in Sep/Oct 2023 as well. This attempt on 17 Nov 2023 has successfully cleared the resistance on weekly charts with rising volumes. Another interesting thing is that there was high volume rejection in May 2022 when it peaked around 493 in the month of April 2022; the current price and volume trend has even taken off those rejection levels with ease. 740 is a very very initial trading target (weak below 430) while I look this scrip as a portfolio buy for minimum 2-3 years time frame with targets of 1100 ++ (Weak below 400) PS: From cmp of 555 this could be a doubler or multibagger in making. CLose watch on QoQ performance for next 6 quarters shall reveal a lot about the company.
NSE:VARROCLong
by AAnandAggarwal
Bullish chart pattern breakout with good volumes.The stock recently broke out of an ascending right-angle triangle pattern, and this breakout was accompanied by a substantial accumulation of trading volume at the breakout levels. The presence of good volume accumulation before the breakout indicates a significant build-up of market interest and potential buying activity. The ascending right-angle triangle pattern breakout, coupled with volume accumulation, suggests a strong bullish signal. Traders often interpret such patterns as indicative of a potential continuation of the existing upward trend. The volume accumulation adds confirmation to the breakout, signifying increased participation and conviction among market participants. In summary, the combination of an ascending right-angle triangle pattern breakout and volume accumulation at breakout levels implies a well-supported bullish scenario. Investors and traders may find this technical setup compelling, signaling potential sustained upward momentum for the stock.
NSE:VARROCLong
by nsdtrading
VARROCVARROC :- Double bottom pattern has formed, volume is also good, wait for the breakout, till then keep an eye on the stock. Hello traders, As always, simple and neat charts so everyone can understand and not make it too complicated. rest details mentioned in the chart. will be posting more such ideas like this. Until that, like share and follow :) check my other ideas to get to know about all the successful trades based on price action. Thanks, Ajay. keep learning and keep earning.
NSE:VARROCLong
by AjayDhakad_Keep_it_simple
VARROC ENGINEERING WYCKOFF ACCUMULATIONVarroc Engineering is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components Market Cap : 5000cr Market Cap set your positions accordingly Sector : Auto Ancillary VARROC ENGINEERING is in a 4 month trading range, the analysis done above is through Wyckoff method and we get what looks like a accumulation TR (trading range). PHASE A : The TR got established from 15th September where it did the highest volume since it's IPO in 2018. Labelled the PSY , SC , AR as Upthrust Action followed by a low spread Secondary Test on good volume leaving a wick and closing in green shows hints at some absorption happening that marks the PHASE A and CHoCH ( Change of Character ) the bias for the TR at this point is bullish. PHASE B : Secondary Test on 21st October with huge volume but closed below the AR 319.80 level which shows rejection, at this point we can conclude the price is not ready for the markup phase and still needs to spend some time in TR followed by the price falling off with low volumes and low spread indicating no further new selling but also fall in demand till 16th Nov where the price went below the ST in PHASE A but on low volumes then buying demand came and closed above previous 4 Days close with fair volume and good spread. PHASE C : The hardest part is identifying PHASE C but it is the only thing matters followed by PHASE D in Wyckoff Method. 16th - 17th Nov the stock had good volumes and good spread indicating SOS rally but failed to closed above AR levels , also the following week/month Nifty ( Comparative Index/ Market Proxy ) had faced Volatility on the down side and 29th Nov being the biggest fall in Nifty since 2 quarters but the underlying stock didn't broke the ST(PHASE B) levels. This shows positive jump in Relative Strength and the start of it. On 7th Dec the candle showed some demand and followed buying crossing above the AR, ST(PHASE B) levels giving couple of closes above the TR so we mark the low on 6th Dec as LPS (Last point of Support) and Conclude Phase C. Though we missed our First of Four entry points but given the Volatile Market conditions it was hard to Initiate. PHASE D : PHASE D in the Wyckoff Method indicates a SOS ( Sign of Strength) TR above the previous TR , BU ( Backing Up Action) and LPS/ Multiple LPS. In this stock's case after the SOS rally the volumes cooled off with slide in price we mark the last swing ended as ST=UT because it wasn't a SOS because the price failed to sustain above the TR and came back in the TR , the market proxy faced huge volatility and made a new low from it's previous levels with big spreads but the underlying stock didn't made a new low thus forming a Higher High - Higher low formation showing relative strength even though it closed -9% and the price is now rising with lower spread and volumes, thus we mark the low as LPS. We make a uptrend channel by connecting two lows and the high. Conclusion : Scenario # 1 : The stock still seems to be in PHASE D also trying to cross above 200 Dema and 100 Dema if it shows SOS above 336 we can expect PHASE E (Markup PHASE), CHoCH and we can start a bull campaign and further add positions with trailing stoploss on LPS/Channel/DEMA. Scenario # 2 : If the price breaks Channel we can expect that the stock needs to spend more time in TR. Scenario # 3 : If the price also breaks LPS then the TR can be extended way further or can be concluded as a Distribution PHASE .
NSE:VARROCLong
by nukacola933