NSEI:VARROC

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Executive Summary

Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, and precision metallic components worldwide.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Varroc Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VARROC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.0%

VARROC

4.8%

IN Auto Components

2.3%

IN Market


1 Year Return

-47.9%

VARROC

-0.006%

IN Auto Components

2.5%

IN Market

Return vs Industry: VARROC underperformed the Indian Auto Components industry which returned -0% over the past year.

Return vs Market: VARROC underperformed the Indian Market which returned 2.5% over the past year.


Shareholder returns

VARROCIndustryMarket
7 Day17.0%4.8%2.3%
30 Day0.4%3.1%4.2%
90 Day63.3%29.8%22.1%
1 Year-47.5%-47.9%1.3%-0.006%4.4%2.5%
3 Yearn/a-28.1%-30.2%5.3%0.3%
5 Yearn/a-10.3%-14.1%29.9%20.2%

Price Volatility Vs. Market

How volatile is Varroc Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Varroc Engineering undervalued compared to its fair value and its price relative to the market?

16227.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VARROC (₹229.9) is trading above our estimate of fair value (₹116.92)

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


Price To Earnings Ratio

PE vs Industry: VARROC is poor value based on its PE Ratio (16227.9x) compared to the IN Auto Components industry average (20.9x).

PE vs Market: VARROC is poor value based on its PE Ratio (16227.9x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: VARROC is poor value based on its PEG Ratio (147.6x)


Price to Book Ratio

PB vs Industry: VARROC is good value based on its PB Ratio (1x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Varroc Engineering forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

109.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VARROC's forecast earnings growth (109.9% per year) is above the savings rate (7.2%).

Earnings vs Market: VARROC's earnings (109.9% per year) are forecast to grow faster than the Indian market (23.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VARROC's revenue (12.6% per year) is forecast to grow faster than the Indian market (10.1% per year).

High Growth Revenue: VARROC's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VARROC's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Varroc Engineering performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VARROC has high quality earnings.

Growing Profit Margin: VARROC's current net profit margins (0%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: VARROC's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: VARROC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VARROC had negative earnings growth (-100%) over the past year, making it difficult to compare to the Auto Components industry average (-44.1%).


Return on Equity

High ROE: VARROC's Return on Equity (0.08%) is considered low.


Next Steps

Financial Health

How is Varroc Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: VARROC's short term assets (₹41.4B) do not cover its short term liabilities (₹60.0B).

Long Term Liabilities: VARROC's short term assets (₹41.4B) exceed its long term liabilities (₹19.8B).


Debt to Equity History and Analysis

Debt Level: VARROC's debt to equity ratio (117%) is considered high.

Reducing Debt: VARROC's debt to equity ratio has reduced from 149% to 117% over the past 5 years.

Debt Coverage: VARROC's debt is well covered by operating cash flow (39.9%).

Interest Coverage: VARROC's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Varroc Engineering current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VARROC's dividend (1.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.63%).

High Dividend: VARROC's dividend (1.3%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VARROC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VARROC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (21176%), VARROC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VARROC's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Tarang Jain (59 yo)

19.58yrs

Tenure

₹51,700,000

Compensation

Mr. Tarang Jain serves as Managing Director of Varroc Engineering Ltd. since 2001 and also serves as its Executive Director since May 11, 1988. Mr. Jain also serves as Managing Director of Duro Valves Indi ...


Leadership Team

NamePositionTenureCompensationOwnership
Tarang Jain
MD & Executive Director19.58yrs₹51.70m77.58%
₹ 24.0b
T. Srinivasan
Group Chief Financial Officer2.5yrs₹19.82m0.00040%
₹ 124.0k
Ajay Sharma
Group General Counsel0.58yr₹3.53mno data
Arjun Jain
Whole-time Director2yrs₹11.98m0.0037%
₹ 1.1m
Vineet Tyagi
Associate Vice President of Operationsno datano datano data
Vikas Marwah
Chief Sales & Marketing Officer and Senior VPno datano datano data
Kavita Kulkarni
Chief Human Resource Officer1.58yrsno datano data
S. Patil
Senior Vice President of Production Systemsno datano datano data
Prakash Khose
Business Head of Metallic Forging Divisionno datano datano data
Laxmikant Miniyar
Business Head of Metallic Engine Valve Divisionno datano datano data
Puneet Chandhok
Group Chief Supply Chain Officer4.92yrsno datano data
Dharapuram Sethumadavan
SVP & Business Head of Polymer Divisionno datano datano data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: VARROC's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tarang Jain
MD & Executive Director19.58yrs₹51.70m77.58%
₹ 24.0b
Arjun Jain
Whole-time Director2yrs₹11.98m0.0037%
₹ 1.1m
Rohit Prakash
President of Business Head - Metallic & Additional Whole Time Director0.33yrno datano data
Naresh Jain
Non-Executive Chairman23.58yrs₹630.00k7.42%
₹ 2.3b
Gautam Khandelwal
Independent Director9.42yrs₹3.38mno data
Marc Szulewicz
Independent Director3.08yrs₹2.28mno data
Vijaya Sampath
Independent Director3.08yrs₹3.50m0.00052%
₹ 161.2k
Vinish Kathuria
Independent Director2.5yrs₹3.40mno data

3.1yrs

Average Tenure

59yo

Average Age

Experienced Board: VARROC's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Varroc Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Varroc Engineering Limited
  • Ticker: VARROC
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹30.993b
  • Shares outstanding: 134.81m
  • Website: https://www.varroc.com

Number of Employees


Location

  • Varroc Engineering Limited
  • L-4, MIDC Industrial Area
  • Waluj
  • Aurangabad
  • Maharashtra
  • 431136
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VARROCNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2018
541578BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2018

Biography

Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, and precision metallic components worldwide. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:38
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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 here.