Declared Dividend • May 30
Dividend increased to ₹1.50 Dividend of ₹1.50 is 50% higher than last year. Ex-date: 7th August 2026 Payment date: 19th September 2026 Dividend yield will be 0.3%, which is lower than the industry average of 0.6%. Sustainability & Growth Dividend is well covered by both earnings (25% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 141% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 28
Varroc Engineering Limited announces Annual dividend, payable on September 19, 2026 Varroc Engineering Limited announced Annual dividend of INR 1.5000 per share payable on September 19, 2026, ex-date on August 07, 2026 and record date on August 07, 2026. Reported Earnings • May 28
Full year 2026 earnings: EPS misses analyst expectations Full year 2026 results: EPS: ₹14.73 (up from ₹4.01 in FY 2025). Revenue: ₹89.1b (up 9.2% from FY 2025). Net income: ₹2.25b (up 268% from FY 2025). Profit margin: 2.5% (up from 0.8% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 21%. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • May 27
Varroc Engineering Limited, Annual General Meeting, Aug 20, 2026 Varroc Engineering Limited, Annual General Meeting, Aug 20, 2026, at 11:00 Indian Standard Time. Announcement • May 18
Varroc Engineering Limited to Report Q4, 2026 Results on May 27, 2026 Varroc Engineering Limited announced that they will report Q4, 2026 results at 12:08 PM, Indian Standard Time on May 27, 2026 Reported Earnings • Feb 06
Third quarter 2026 earnings: EPS misses analyst expectations Third quarter 2026 results: ₹0.67 loss per share (improved from ₹3.10 loss in 3Q 2025). Revenue: ₹22.9b (up 10% from 3Q 2025). Net loss: ₹103.0m (loss narrowed 78% from 3Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 11
Varroc Appoints Namrata Parashar as Head of Marketing and Communications Varroc has appointed Namrata Parashar as its new Head of Marketing and Communications. Parashar has more than two decades of experience in strategic marketing, brand building, and public relations. Parashar has built a distinguished career leading large-scale brand, reputation, and stakeholder engagement programs across India's financial and data ecosystems. One of the defining achievements of her professional journey has been shaping the CIBIL Score into one of India's most recognized and widely searched financial terms where she dedicated over 16 years of her career. Through impactful consumer education efforts and integrated marketing communication campaigns, she played a pivotal role in establishing the CIBIL Score as a household reference point for financial awareness and credit discipline in the country. At Varroc, Parashar will oversee corporate communications, brand strategy, media relations, and stakeholder engagement, with a focus on elevating the company's visibility within the automotive and technology sectors. Previously, she was Joint VP and Head of Communication at TransUnion CIBIL Limited. Buy Or Sell Opportunity • Dec 09
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 4.7% to ₹638. The fair value is estimated to be ₹523, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 272% in the next 2 years. New Risk • Nov 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₹8.30b (US$93.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (₹8.30b market cap, or US$93.0m). Reported Earnings • Nov 13
Second quarter 2026 earnings: EPS and revenues miss analyst expectations Second quarter 2026 results: EPS: ₹3.99 (up from ₹3.64 in 2Q 2025). Revenue: ₹22.1b (up 5.9% from 2Q 2025). Net income: ₹609.5m (up 9.5% from 2Q 2025). Profit margin: 2.8% (up from 2.7% in 2Q 2025). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 38%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 31% per year. Announcement • Nov 04
Varroc Engineering Limited to Report Q2, 2026 Results on Nov 12, 2025 Varroc Engineering Limited announced that they will report Q2, 2026 results at 9:08 AM, Indian Standard Time on Nov 12, 2025 Buy Or Sell Opportunity • Oct 16
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 10% to ₹616. The fair value is estimated to be ₹508, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.7% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 289% in the next 2 years. Buy Or Sell Opportunity • Sep 15
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to ₹621. The fair value is estimated to be ₹507, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.7% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 23% in 2 years. Earnings are forecast to grow by 289% in the next 2 years. Announcement • Aug 02
Varroc Engineering Limited to Report Q1, 2026 Results on Aug 07, 2025 Varroc Engineering Limited announced that they will report Q1, 2026 results on Aug 07, 2025 Upcoming Dividend • Aug 01
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 08 August 2025. Payment date: 20 September 2025. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 0.2%. Lower than top quartile of Indian dividend payers (1.2%). Lower than average of industry peers (0.7%). Announcement • Jul 18
Varroc Engineering Limited Approves Management Changes, Effective July 31, 2025 Varroc Engineering Limited at its meeting held on July 18, 2025 approved Mr. Ajay Kumar Sharma, Whole Time Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company has tendered his resignation from the position of Company Secretary & Compliance Officer (Key Managerial Personnel) of the Company, due to personal reasons, effective from close of business hours on July 31, 2025. Based on the recommendation of Nomination and Remuneration Committee, the Board of Directors, has approved the appointment of Mr. Anil Ghatiya as the Company Secretary and Compliance Officer (Key Managerial Personnel) of the Corporation with effect from, July 31, 2025. Profile of Mr. Anil Ghatiya: Mr. Anil Ghatiya is a commerce Graduate and a qualified Company Secretary. He started his carrier with Varroc Group in the year 2003 and was appointed as Company Secretary of Varroc Polymers Ltd. (now amalgamated with Varroc Engineering Ltd.) since January, 2005. He has more than two decades of experience and has been part of major corporate re-structuring including but not limited to IPO/Minimum Public Shareholding/merger-demerger/Overseas acquisitions/Sale of 4W lighting business etc. Mr. Anil Ghatiya is a commerce Graduate and a qualified Company Secretary. He started his carrier with Varroc Group in the year 2003 and was appointed as Company Secretary of Varroc Polymers Ltd. [now amalgamated with Varroc Engineering Ltd.) since January, 2005. He has more than two decades of experience and has been part of major corporate re- structuring including but not limited to IPO/Minimum Public Shareholding/merger- demerger/Overseas acquisitions/Sale of 4W lighting business etc. Price Target Changed • Jun 02
Price target increased by 12% to ₹584 Up from ₹523, the current price target is an average from 5 analysts. New target price is 10% above last closing price of ₹529. Stock is down 5.6% over the past year. The company is forecast to post earnings per share of ₹24.20 for next year compared to ₹4.01 last year. Announcement • May 30
Varroc Engineering Limited announces Annual dividend, payable on September 20, 2025 Varroc Engineering Limited announced Annual dividend of INR 1.0000 per share payable on September 20, 2025, ex-date on August 08, 2025 and record date on August 08, 2025. Reported Earnings • May 30
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: ₹14.01 (down from ₹35.80 in FY 2024). Revenue: ₹81.7b (up 8.2% from FY 2024). Net income: ₹612.3m (down 89% from FY 2024). Profit margin: 0.7% (down from 7.2% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 73%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • May 29
Varroc Engineering Limited, Annual General Meeting, Aug 21, 2025 Varroc Engineering Limited, Annual General Meeting, Aug 21, 2025, at 11:00 Indian Standard Time. Announcement • May 22
Varroc Engineering Limited to Report Q4, 2025 Results on May 29, 2025 Varroc Engineering Limited announced that they will report Q4, 2025 results on May 29, 2025 Announcement • Mar 27
Varroc Engineering Limited Appoints Hariprasad Rayapalyam as Head-Legal Varroc Engineering Limited at its Board of Directors meeting held on March 27, 2025, announced that Mr. Hariprasad Rayapalyam has been appointed as Head-Legal of the Company with effect from March 27, 2025. Accordingly, Mr. Hariprasad Rayapalyam shall be a Senior Management Personnel of the Company effective the said date. Mr. Hariprasad Rayapalyam is a seasoned General Counsel with 26 years of experience in legal, ethics & compliance - working for corporate and law firms in India and abroad. His last assignment was with ZF Commercial Vehicle Control systems India Ltd. wherein he was a Vice President/Head - Legal. He graduated with an L.L.M degree from LSU law school, USA and BSL; L.L.B from ILS, Pune. Mr. Hariprasad will head legal function for Varroc group across globe. Mr. Hariprasad Rayapalyam is not related to any of the Directors /Key Managerial Personnel /Senior Management Personnel. Buy Or Sell Opportunity • Mar 26
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to ₹442. The fair value is estimated to be ₹553, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 401% in the next 2 years. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹472, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 25x in the Auto Components industry in India. Total returns to shareholders of 43% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹551 per share. Buy Or Sell Opportunity • Mar 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 26% to ₹433. The fair value is estimated to be ₹552, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 401% in the next 2 years. Buy Or Sell Opportunity • Feb 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to ₹438. The fair value is estimated to be ₹557, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.5% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 401% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹462, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 24x in the Auto Components industry in India. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹557 per share. New Risk • Feb 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.9x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Reported Earnings • Feb 11
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: ₹3.10 loss per share (down from ₹25.05 profit in 3Q 2024). Revenue: ₹20.8b (up 10% from 3Q 2024). Net loss: ₹474.3m (down 112% from profit in 3Q 2024). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Jan 29
Varroc Engineering Limited to Report Q3, 2025 Results on Feb 10, 2025 Varroc Engineering Limited announced that they will report Q3, 2025 results on Feb 10, 2025 Announcement • Dec 19
Varroc Engineering Limited Appoints Vidyadhar Madhukar Limaye as A Director / Whole Time Director Varroc Engineering Limited appointed Vidyadhar Madhukar Limaye as a director /whole time director of the company. TERM OF APPOINTMENT: 3 years i.e., from November 13, 2024 to November 12, 2027. Resolution passed by way of Postal Ballot through remote evoting process on December 18, 2024. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹599, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 81% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹409 per share. Board Change • Nov 18
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. CEO of Varroc – Business II & Director Dhruv Jain was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 18
Price target decreased by 11% to ₹553 Down from ₹620, the current price target is an average from 4 analysts. New target price is 11% above last closing price of ₹499. Stock is down 7.5% over the past year. The company is forecast to post earnings per share of ₹18.30 for next year compared to ₹35.80 last year. Reported Earnings • Nov 14
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: ₹3.64 (up from ₹3.55 in 2Q 2024). Revenue: ₹20.9b (up 11% from 2Q 2024). Net income: ₹556.8m (up 2.7% from 2Q 2024). Profit margin: 2.7% (down from 2.9% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 131% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Nov 13
Varroc Engineering Limited Announces Board Changes Varroc Engineering Limited announced that Mr. Tarun Tyagi (DIN 10204986) has tendered his resignation from the position of Whole Time Director and Key Managerial Personnel of the Company due to personal reasons effective from
November 13, 2024. would also like to inform that, post the above changes the composition of the Board of Directors of the Company will stand as below: Mr. Tarang Jain serves as the Chairman & Managing Director, leading the company’s strategic direction. Mr. Arjun Jain and Mr. Vidyadhar Limaye are both Whole-Time Directors, contributing their expertise to day-to-day operations and overall management. The Independent Directors include Mr. Gautam Khandelwal, Mr. Marc Szulewicz, Mrs. Vijaya Sampath, and Mr. Vinish Kathuria, each bringing their valuable perspective and independent judgment to the board. Mr. Dhruv Jain holds the position of Non-Executive Director, Non-Independent Director, offering additional governance insights without a direct role in the company’s operational management. Announcement • Nov 05
Varroc Engineering Limited to Report Q2, 2025 Results on Nov 13, 2024 Varroc Engineering Limited announced that they will report Q2, 2025 results on Nov 13, 2024 Announcement • Aug 29
Varroc Names Dr. Karl-Heinz Glander as Head of Research and Development for Business II Varroc has named Dr. Karl-Heinz Glander as the head of Research and Development for Business II. Dr. Glander is to report to Dhruv Jain, Varroc Business II CEO. In the new role, Dr. Glander will manage RD activities for Business II, concentrating on developing advanced technologies like Advanced Driver Assistance Systems (ADAS), Driver Monitoring Systems (DMS), Driver and Occupant Monitoring Systems (DOMS), cockpit electronics, video telematics, and fleet management systems for the automotive industry. He will be responsible for driving the RD strategy, promoting innovation, and improving the firm's global market competitiveness. Dr. Glander has 20 years of experience in the automotive sector. His experience includes research and development, advanced technology, product innovation, and series development for mass production. He has served at companies like Aptiv, ZF Automotive/TRW, and Siemens VDO/Continental. Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹605, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 30x in the Auto Components industry in India. Total returns to shareholders of 105% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹342 per share. Price Target Changed • Aug 09
Price target decreased by 11% to ₹570 Down from ₹637, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of ₹556. Stock is up 45% over the past year. The company is forecast to post earnings per share of ₹19.70 for next year compared to ₹35.80 last year. Reported Earnings • Aug 08
First quarter 2025 earnings released: EPS: ₹2.12 (vs ₹3.48 in 1Q 2024) First quarter 2025 results: EPS: ₹2.12 (down from ₹3.48 in 1Q 2024). Revenue: ₹19.0b (up 6.1% from 1Q 2024). Net income: ₹324.1m (down 39% from 1Q 2024). Profit margin: 1.7% (down from 3.0% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 130% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Jul 31
Varroc Engineering Limited to Report Q1, 2025 Results on Aug 07, 2024 Varroc Engineering Limited announced that they will report Q1, 2025 results on Aug 07, 2024 Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₹660, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 27x in the Auto Components industry in India. Total returns to shareholders of 78% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹468 per share. Buy Or Sell Opportunity • Jun 05
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to ₹581. The fair value is estimated to be ₹454, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has grown by 109%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 2.1% per annum over the same time period. Price Target Changed • May 22
Price target increased by 8.0% to ₹636 Up from ₹589, the current price target is an average from 6 analysts. New target price is 9.3% above last closing price of ₹582. Stock is up 91% over the past year. The company is forecast to post earnings per share of ₹26.13 for next year compared to ₹35.80 last year. Announcement • May 19
Varroc Engineering Limited, Annual General Meeting, Sep 12, 2024 Varroc Engineering Limited, Annual General Meeting, Sep 12, 2024, at 11:00 Indian Standard Time. Reported Earnings • May 18
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: ₹35.80 (up from ₹2.36 in FY 2023). Revenue: ₹75.8b (up 10% from FY 2023). Net income: ₹5.47b (up ₹5.11b from FY 2023). Profit margin: 7.2% (up from 0.5% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.1%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 109% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 11
Varroc Engineering Limited to Report Q4, 2024 Results on May 17, 2024 Varroc Engineering Limited announced that they will report Q4, 2024 results at 12:08 PM, Indian Standard Time on May 17, 2024 New Risk • Mar 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings are forecast to decline by an average of 2.7% per year for the foreseeable future. Price Target Changed • Feb 10
Price target increased by 13% to ₹551 Up from ₹489, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of ₹533. Stock is up 95% over the past year. The company is forecast to post earnings per share of ₹36.61 for next year compared to ₹2.36 last year. New Risk • Feb 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Earnings are forecast to decline by an average of 6.2% per year for the foreseeable future. Reported Earnings • Feb 08
Third quarter 2024 earnings released: EPS: ₹25.05 (vs ₹1.34 in 3Q 2023) Third quarter 2024 results: EPS: ₹25.05 (up from ₹1.34 in 3Q 2023). Revenue: ₹18.9b (up 10% from 3Q 2023). Net income: ₹3.83b (up ₹3.62b from 3Q 2023). Profit margin: 20% (up from 1.2% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹601, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 28x in the Auto Components industry in India. Total returns to shareholders of 34% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹341 per share. Announcement • Jan 19
Varroc Engineering Limited to Report Q3, 2024 Results on Feb 07, 2024 Varroc Engineering Limited announced that they will report Q3, 2024 results on Feb 07, 2024 New Risk • Nov 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.8x net interest cover). Minor Risk Share price has been volatile over the past 3 months (7.4% average weekly change). Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹555, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 23x in the Auto Components industry in India. Total returns to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹280 per share. Reported Earnings • Nov 08
Second quarter 2024 earnings: EPS misses analyst expectations Second quarter 2024 results: EPS: ₹3.55 (up from ₹1.27 loss in 2Q 2023). Revenue: ₹18.9b (up 3.6% from 2Q 2023). Net income: ₹542.3m (up ₹736.0m from 2Q 2023). Profit margin: 2.9% (up from net loss in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Nov 01
Varroc Engineering Limited to Report Q2, 2024 Results on Nov 07, 2023 Varroc Engineering Limited announced that they will report Q2, 2024 results on Nov 07, 2023 Announcement • Sep 15
Varroc Engineering Ltd Hires Tarun Tyagi as Whole Time Director Varroc Engineering Ltd. has Appointed Tarun Tyagi as Whole Time Director. Price Target Changed • Sep 13
Price target increased by 9.1% to ₹414 Up from ₹379, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of ₹434. Stock is up 11% over the past year. The company is forecast to post earnings per share of ₹15.73 for next year compared to ₹2.36 last year. Price Target Changed • Aug 11
Price target increased by 8.9% to ₹379 Up from ₹348, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of ₹384. Stock is up 15% over the past year. The company is forecast to post earnings per share of ₹15.10 for next year compared to ₹2.36 last year. Announcement • Aug 10
Varroc Engineering Limited Announces Management Changes Varroc Engineering Limited's Board of Directors at its meeting held on August 9, 2023 has also considered the following items. Mr. Rohit Prakash (DIN 02425849) has tendered his resignation from the position of Whole TimeDirector and Key Managerial Personnel of the Company due to personal reasons effective from August 9, 2023. The Board has placed on record its appreciation for the valuable contribution made and services rendered by Mr. Rohit Prakash during his tenure as Whole Time Director of the Company. The Board of Directors of the Company approved the appointment of Mr. Manoj Dhar as Group Chief Internal Auditor & Risk Officer of the Company effective from August 9, 2023, consequent to the retirement of present incumbent Mr. Lalit Dua. Mr. Manoj Dhar possesses more than 20 years of experience in organizations like Orient Electric Limited, Benetton India Pvt. Ltd. and ACC Limited. Academically, he is a Chartered Accountant with specialized Certifications in Internal Audits (CIA), Information System Audits (CISA) and Fraud Examination (CFE). Reported Earnings • Aug 10
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: ₹3.48 (up from ₹0.30 loss in 1Q 2023). Revenue: ₹18.1b (up 11% from 1Q 2023). Net income: ₹531.8m (up ₹577.5m from 1Q 2023). Profit margin: 2.9% (up from net loss in 1Q 2023). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) also missed analyst estimates by 36%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Aug 03
Varroc Engineering Limited to Report Q1, 2024 Results on Aug 09, 2023 Varroc Engineering Limited announced that they will report Q1, 2024 results on Aug 09, 2023 Announcement • May 24
Varroc Engineering Limited, Annual General Meeting, Sep 13, 2023 Varroc Engineering Limited, Annual General Meeting, Sep 13, 2023, at 11:00 Indian Standard Time. Reported Earnings • May 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: ₹2.36 (up from ₹5.33 loss in FY 2022). Revenue: ₹69.2b (up 18% from FY 2022). Net income: ₹360.8m (up ₹1.18b from FY 2022). Profit margin: 0.5% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 50%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 30% per year whereas the company’s share price has increased by 34% per year. Announcement • May 17
Varroc Engineering Limited to Report Q4, 2023 Results on May 23, 2023 Varroc Engineering Limited announced that they will report Q4, 2023 results on May 23, 2023 Board Change • May 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Business Head of Global 4W Electronics & Non-India Lighting and Non-Executive Director Dhruv Jain was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 08
Third quarter 2023 earnings released: EPS: ₹1.34 (vs ₹17.35 loss in 3Q 2022) Third quarter 2023 results: EPS: ₹1.34 (up from ₹17.35 loss in 3Q 2022). Revenue: ₹17.3b (down 45% from 3Q 2022). Net income: ₹204.0m (up ₹2.86b from 3Q 2022). Profit margin: 1.2% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 12% per year. Announcement • Jan 17
Varroc Engineering Limited to Report Q3, 2023 Results on Feb 07, 2023 Varroc Engineering Limited announced that they will report Q3, 2023 results on Feb 07, 2023 Reported Earnings • Nov 16
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: ₹1.27 loss per share (improved from ₹19.52 loss in 2Q 2022). Revenue: ₹18.5b (down 39% from 2Q 2022). Net loss: ₹193.7m (loss narrowed 94% from 2Q 2022). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Nov 05
Varroc Engineering Limited to Report Q2, 2023 Results on Nov 14, 2022 Varroc Engineering Limited announced that they will report Q2, 2023 results on Nov 14, 2022 Announcement • Sep 29
Varroc Engineering Limited Appoints K Mahendra Kumar as the Group's Chief Financial Officer Varroc Engineering Limited announced the joining of K Mahendra Kumar as the Group's Chief Financial officer. He joins Varroc Group from Tube Investments of India Ltd. where he was an Executive Vice President and Chief Financial Officer for over five years. He joins Varroc Group from Tube Investments of India Ltd. where he was an Executive Vice President and Chief Financial Officer for over five years. Buying Opportunity • Sep 27
Now 20% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be ₹433, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Meanwhile, the company became loss making. Buying Opportunity • Aug 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 5.3%. The fair value is estimated to be ₹415, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Aug 16
First quarter 2023 earnings released First quarter 2023 results: Net income: (up ₹2.30b from 1Q 2022). Over the next year, revenue is forecast to grow 17%, compared to a 17% growth forecast for the Auto Components industry in India. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 16
Price target decreased to ₹414 Down from ₹449, the current price target is an average from 7 analysts. New target price is 24% above last closing price of ₹333. Stock is up 13% over the past year. The company is forecast to post earnings per share of ₹6.16 next year compared to a net loss per share of ₹5.33 last year. Announcement • Aug 06
Varroc Engineering Limited to Report Q1, 2023 Results on Aug 12, 2022 Varroc Engineering Limited announced that they will report Q1, 2023 results on Aug 12, 2022 Price Target Changed • Jul 13
Price target decreased to ₹455 Down from ₹494, the current price target is an average from 4 analysts. New target price is 44% above last closing price of ₹316. Stock is down 11% over the past year. The company is forecast to post earnings per share of ₹13.00 next year compared to a net loss per share of ₹5.33 last year. Reported Earnings • Jun 01
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: ₹5.33 loss per share (up from ₹46.75 loss in FY 2021). Revenue: ₹58.8b (down 48% from FY 2021). Net loss: ₹814.4m (loss narrowed 87% from FY 2021). Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 42%. Over the next year, revenue is forecast to grow 128%, compared to a 20% growth forecast for the industry in India. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • May 20
Varroc Engineering Limited to Report Q4, 2022 Results on May 30, 2022 Varroc Engineering Limited announced that they will report Q4, 2022 results on May 30, 2022 Price Target Changed • May 05
Price target increased to ₹429 Up from ₹394, the current price target is an average from 8 analysts. New target price is 10.0% above last closing price of ₹390. Stock is up 1.7% over the past year. The company is forecast to post a net loss per share of ₹51.22 next year compared to a net loss per share of ₹46.75 last year. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. President & Business Head of Metallic and Additional Whole Time Director Rohit Prakash was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 19
Varroc Reportedly Seeks to Sell Global Lighting Business for Up to $650 Million Varroc Engineering Limited (NSEI:VARROC) is likely to sell its global lighting business Varroc Lighting System (VLS) at an enterprise value of up to INR 6.00 billion ($650 million) to a leading European component maker to pare its debt, multiple people aware of development told ET. The company has brought on board a European investment bank based in Paris a few months ago to look for buyers for its global lighting business where it makes head lamp, rear lamps, and fog lamps, added people in the know. "The sale exercise is currently undergoing a due diligence process with European component makers. It has annual revenue potential of more than INR 6 billion," said a person familiar with the development. After the deal, Varroc is likely to become debt free. VLS is the sixth largest automotive lighting maker globally, supplying parts to Ford and Jaguar Land Rover. VLS has 12 operating facilities for passenger cars in the Czech Republic, China, India, Mexico, Morocco, Turkey, Poland, Brazil and Romania, and two facilities in two-wheelers. Announcement • Apr 01
Beste Motor Co. Ltd. Provides Update on Arbitration Against Varroc Engineering Limited and VarrocCorp Holding BV Beste Motor Co. Ltd., a subsidiary of the TYC Brother Industrial Co. Ltd., has filed counterclaims in the arbitration proceedings, claiming that Varroc Engineering Limited and VarrocCorp Holding BV have violated the Shareholders Agreement and Alliance Agreement, and that Beste Motor Co. Ltd. is entitled to acquire the shares in the joint venture company held by VarrocCorp Holding BV. Beste Motor Co. Ltd. is discussing other related corresponding measures with lawyers. Beste Motor Co. Ltd. (¡¨Beste¡¨), a subsidiary of the Company, and VarrocCorp Holding BV, a subsidiary of Varroc Engineering Limited, a listed company in India, are parties to an ongoing ICC arbitration. Their disputes arise under the Shareholders Agreement, Alliance Agreement, and the Transition Management Agreement, and relate to the operation of the joint venture company Varroc TYC Corporation. Regarding the same arbitration event, Beste has responded to VarrocCorp Holding BV¡¦s claims, filed counterclaims against VarrocCorp Holding BV, and requested joinder of Varroc Engineering Limited to the arbitration. Subsequently, VarrocCorp Holding BV requested joinder of the Company as a respondent in the same arbitration event on February 23, 2022, and the Company received the ICC notice for such request on March 31, 2022. The Company received the electronic documents of the request for joinder on March 31, 2022. This is the same arbitration event which the Company has disclosed for Beste on December 3, 2021, and the Company has appointed Lee & Li Attorneys-at-law and Singapore lawyers to handle the related matters. This arbitration relates to disputes between the shareholders of the joint venture company, including their entitlement to purchase and/or sell their respective shares of the joint venture company. The arbitral tribunal, which has not yet been constituted, will ultimately determine the parties disputes. Buying Opportunity • Mar 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 3.9%. The fair value is estimated to be ₹370, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. The company became loss making over the last 3 years. Reported Earnings • Feb 15
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: ₹17.35 loss per share (down from ₹10.29 loss in 3Q 2021). Revenue: ₹31.5b (down 10% from 3Q 2021). Net loss: ₹2.65b (loss widened 91% from 3Q 2021). Revenue exceeded analyst estimates by 3.7%. Earnings per share (EPS) missed analyst estimates by 18%. Over the next year, revenue is forecast to grow 14%, compared to a 17% growth forecast for the industry in India. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 93 percentage points per year, which is a significant difference in performance. Announcement • Feb 08
Varroc Engineering Limited to Report Q3, 2022 Results on Feb 14, 2022 Varroc Engineering Limited announced that they will report Q3, 2022 results on Feb 14, 2022 Buying Opportunity • Feb 04
Now 22% undervalued Over the last 90 days, the stock is up 41%. The fair value is estimated to be ₹532, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. The company became loss making over the last 3 years. Buying Opportunity • Jan 19
Now 21% undervalued Over the last 90 days, the stock is up 39%. The fair value is estimated to be ₹542, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. The company became loss making over the last 3 years. Board Change • Dec 06
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. President & Business Head of Metallic and Additional Whole Time Director Rohit Prakash was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Nov 13
Price target decreased to ₹345 Down from ₹394, the current price target is an average from 7 analysts. New target price is 23% above last closing price of ₹280. Stock is down 5.7% over the past year. The company is forecast to post a net loss per share of ₹35.35 next year compared to a net loss per share of ₹46.75 last year. Reported Earnings • Nov 12
Second quarter 2022 earnings released: ₹19.52 loss per share (vs ₹2.97 loss in 2Q 2021) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2022 results: Revenue: ₹30.4b (up 3.5% from 2Q 2021). Net loss: ₹2.98b (loss widened ₹2.58b from 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 17
Price target decreased to ₹412 Down from ₹452, the current price target is an average from 8 analysts. New target price is 39% above last closing price of ₹296. Stock is up 31% over the past year. Reported Earnings • Aug 06
Full year 2021 earnings released: ₹46.75 loss per share (vs ₹0.014 profit in FY 2020) The company reported a soft full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2021 results: Revenue: ₹113.0b (up 1.6% from FY 2020). Net loss: ₹6.32b (down ₹6.32b from profit in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance.