Varroc Engineering Limited

BSE:541578 Stock Report

Market Cap: ₹83.0b

Varroc Engineering Valuation

Is 541578 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 541578 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹416.97
Fair Value
30.5% overvalued intrinsic discount
4
Number of Analysts

Below Fair Value: 541578 (₹544.15) is trading above our estimate of fair value (₹416.97)

Significantly Below Fair Value: 541578 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 541578?

Key metric: As 541578 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 541578. This is calculated by dividing 541578's market cap by their current earnings.
What is 541578's PE Ratio?
PE Ratio15.7x
Earnings₹5.28b
Market Cap₹83.04b

Price to Earnings Ratio vs Peers

How does 541578's PE Ratio compare to its peers?

The above table shows the PE ratio for 541578 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
SANSERA Sansera Engineering
40.6x27.3%₹78.8b
SHRIPISTON Shriram Pistons & Rings
18.5x15.2%₹88.9b
ASKAUTOLTD ASK Automotive
35.7x20.9%₹85.0b
505714 Gabriel India
31.5x17.6%₹72.4b
541578 Varroc Engineering
15.7x12.1%₹83.0b

Price-To-Earnings vs Peers: 541578 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

How does 541578's PE Ratio compare vs other companies in the IN Auto Components Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.6x-36.1%US$341.40m
505100 India Radiators
0.9xn/aUS$95.57k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
541578 15.7xIndustry Avg. 29.7xNo. of Companies22PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 541578 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the Indian Auto Components industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is 541578's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

541578 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio25.4x

Price-To-Earnings vs Fair Ratio: 541578 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 541578 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹544.15
₹562.75
+3.4%
23.0%₹780.00₹460.00n/a4
Feb ’26₹537.30
₹562.75
+4.7%
23.0%₹780.00₹460.00n/a4
Jan ’26₹596.80
₹552.50
-7.4%
19.6%₹730.00₹460.00n/a4
Dec ’25₹519.55
₹552.50
+6.3%
19.6%₹730.00₹460.00n/a4
Nov ’25₹524.95
₹620.00
+18.1%
19.1%₹800.00₹500.00n/a4
Oct ’25₹590.85
₹609.00
+3.1%
15.7%₹770.00₹500.00n/a5
Sep ’25₹569.10
₹603.50
+6.0%
17.5%₹770.00₹450.00n/a6
Aug ’25₹629.70
₹637.33
+1.2%
16.8%₹780.00₹490.00n/a6
Jul ’25₹671.35
₹637.33
-5.1%
16.8%₹780.00₹490.00n/a6
Jun ’25₹553.30
₹637.33
+15.2%
16.8%₹780.00₹490.00n/a6
May ’25₹524.40
₹588.83
+12.3%
20.5%₹780.00₹400.00n/a6
Apr ’25₹512.35
₹557.50
+8.8%
17.8%₹700.00₹400.00n/a6
Mar ’25₹508.00
₹550.83
+8.4%
18.9%₹700.00₹400.00n/a6
Feb ’25₹589.55
₹488.50
-17.1%
14.1%₹585.00₹380.00₹537.306
Jan ’25₹559.35
₹488.50
-12.7%
14.1%₹585.00₹380.00₹596.806
Dec ’24₹571.20
₹476.14
-16.6%
14.8%₹585.00₹380.00₹519.557
Nov ’24₹457.85
₹413.67
-9.7%
18.8%₹570.00₹320.00₹524.956
Oct ’24₹486.50
₹413.67
-15.0%
18.8%₹570.00₹320.00₹590.856
Sep ’24₹423.15
₹379.14
-10.4%
10.9%₹424.00₹320.00₹569.107
Aug ’24₹353.20
₹348.14
-1.4%
12.2%₹402.00₹260.00₹629.707
Jul ’24₹337.30
₹348.14
+3.2%
12.2%₹402.00₹260.00₹671.357
Jun ’24₹307.65
₹348.14
+13.2%
12.2%₹402.00₹260.00₹553.307
May ’24₹291.65
₹359.86
+23.4%
15.9%₹435.00₹260.00₹524.407
Apr ’24₹249.15
₹359.86
+44.4%
15.9%₹435.00₹260.00₹512.357
Mar ’24₹248.45
₹355.50
+43.1%
15.4%₹435.00₹260.00₹508.008
Feb ’24₹274.85
₹364.14
+32.5%
15.3%₹437.00₹260.00₹589.557
Analyst Price Target
Consensus Narrative from 4 Analysts
₹563.42
Fair Value
3.4% undervalued intrinsic discount
4
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 16:32
End of Day Share Price 2025/02/07 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Varroc Engineering Limited is covered by 14 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Arvind SharmaCitigroup Inc
Pratik RangnekarCredit Suisse
Abhishek JainDolat Capital Market Pvt. Ltd.