Discover and read the best of Twitter Threads about #VARROC

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Weekend Study #charts - No recommendations. Only for study purposes.
1. #TataMotors - self-explanatory chart. Link below
invst.ly/v47gl
2. #graphite - Chart with fib confluences.
invst.ly/v47o6

#MajorsCorner
3. #Shemaroo - Chart enclosed.

invst.ly/v47q8
Read 5 tweets
#VARROC

2nd largest Auto component maker in India
Ranked 124 in Fortune 500 India 2019

Mar 2019 - Operating Profits = Rs. 1090 Cr
TTM - Operating Profits = Rs. 1040 Cr
TTM NOPAT = 1005 Cr

Market Cap = Rs. 1810 Cr

Trading at <2x Operating Profits. Company going to be bankrupt?
#VARROC

Has the business changed? NO!

OPM = 9% approx in last few Quarters
Revenues taken a hit because of the economy. Cyclical. Totally fine.

EPS drop?
1. Interest cost increase by 10 Cr. (Ind AS, higher borrowing)
2. Depreciation increase by 53 Cr. (Ind AS, new capacity)
#VARROC

New capacities in FY21!

Going forward, they will not be paying tax on the higher depreciation amount resulting in FCF --> use to pay off debt.

Debt = 2550 Cr.
Cash Equivalents = 500 Cr.
Net Debt = 2050 Cr.
TTM EBITDA = 1040 Cr.
Net Debt/EBITDA ~ 2x

What am I missing?
Read 9 tweets

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