Varroc Engineering Limited

BSE:541578 Stock Report

Market Cap: ₹82.0b

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.

Below Fair Value: 541578 (₹530.55) is trading above our estimate of fair value (₹419.17)

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?

Other financial metrics that can be useful for relative valuation.

541578 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA11.9x
PEG Ratio1.6x

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 Average39.2x
ASKAUTOLTD ASK Automotive
40.2x18.9%₹89.8b
535602 Sharda Motor Industries
20.6xn/a₹65.9b
532509 Suprajit Engineering
41.4x30.7%₹72.5b
505242 Dynamatic Technologies
54.7x29.4%₹51.4b
541578 Varroc Engineering
15.4x9.7%₹82.0b

Price-To-Earnings vs Peers: 541578 is good value based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (39.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: 541578 is good value based on its Price-To-Earnings Ratio (15.4x) compared to the Indian Auto Components industry average (33.3x).

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 Ratio15.4x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: 541578 is good value based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.9x).

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₹530.55
₹620.00
+16.9%
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₹380.00n/a6
Jan ’25₹559.35
₹488.50
-12.7%
14.1%₹585.00₹380.00n/a6
Dec ’24₹571.20
₹476.14
-16.6%
14.8%₹585.00₹380.00n/a7
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
Jan ’24₹297.05
₹362.14
+21.9%
14.7%₹435.00₹260.00₹559.357
Dec ’23₹295.80
₹362.14
+22.4%
14.7%₹435.00₹260.00₹571.207
Nov ’23₹307.30
₹404.25
+31.5%
19.1%₹529.00₹260.00₹457.858

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

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