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VARR

Varroc Engineering NSEI:VARROC Stock Report

Last Price

₹310.70

Market Cap

₹47.5b

7D

2.3%

1Y

-16.4%

Updated

24 Jun, 2022

Data

Company Financials +
VARROC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

VARROC Stock Overview

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

Varroc Engineering Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Varroc Engineering
Historical stock prices
Current Share Price₹310.70
52 Week High₹493.85
52 Week Low₹260.00
Beta1.63
1 Month Change-11.17%
3 Month Change-2.88%
1 Year Change-16.42%
3 Year Change-34.49%
5 Year Changen/a
Change since IPO-70.05%

Recent News & Updates

Jun 20
Here's Why Varroc Engineering (NSE:VARROC) Is Weighed Down By Its Debt Load

Here's Why Varroc Engineering (NSE:VARROC) Is Weighed Down By Its Debt Load

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 16
Should You Think About Buying Varroc Engineering Limited (NSE:VARROC) Now?

Should You Think About Buying Varroc Engineering Limited (NSE:VARROC) Now?

While Varroc Engineering Limited ( NSE:VARROC ) might not be the most widely known stock at the moment, it saw a decent...

Shareholder Returns

VARROCIN Auto ComponentsIN Market
7D2.3%4.7%2.3%
1Y-16.4%-7.9%-0.9%

Return vs Industry: VARROC underperformed the Indian Auto Components industry which returned -9.7% over the past year.

Return vs Market: VARROC underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is VARROC's price volatile compared to industry and market?
VARROC volatility
VARROC Average Weekly Movement9.0%
Auto Components Industry Average Movement6.1%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: VARROC is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: VARROC's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

FoundedEmployeesCEOWebsite
198813,800Tarang Jainhttps://varroc.com

Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, and precision metallic components worldwide. It operates through Automotive and Others segments. The company offers unpainted and painted body parts; exterior and interior systems; seating systems; mirror systems; air filters; automotive accessories; lighting systems; instrument clusters; catalytic converters; switches; motors and magnetos; electronics; traction motors and controllers; DC-DC converters; and engine valves.

Varroc Engineering Fundamentals Summary

How do Varroc Engineering's earnings and revenue compare to its market cap?
VARROC fundamental statistics
Market Cap₹47.47b
Earnings (TTM)-₹814.37m
Revenue (TTM)₹58.44b

0.8x

P/S Ratio

-58.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VARROC income statement (TTM)
Revenue₹58.44b
Cost of Revenue₹38.49b
Gross Profit₹19.95b
Other Expenses₹20.76b
Earnings-₹814.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-5.33
Gross Margin34.13%
Net Profit Margin-1.39%
Debt/Equity Ratio77.1%

How did VARROC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VARROC 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/Revenue1.1x
Enterprise Value/EBITDA6.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VARROC's PS Ratio compare to its peers?

VARROC PS Ratio vs Peers
The above table shows the PS ratio for VARROC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.8x

Price-To-Sales vs Peers: VARROC is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.8x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: VARROC is expensive based on its Price-To-Sales Ratio (0.8x) compared to the Indian Auto Components industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

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

VARROC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio3.8x

Price-To-Sales vs Fair Ratio: VARROC is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (3.8x).


Share Price vs Fair Value

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

Below Fair Value: VARROC (₹310.7) is trading above our estimate of fair value (₹96.89)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VARROC's PEG Ratio to determine if it is good value.


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Future Growth

How is Varroc Engineering forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


71.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VARROC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (6.7%).

Earnings vs Market: VARROC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VARROC is expected to become profitable in the next 3 years.

Revenue vs Market: VARROC's revenue (34.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: VARROC's revenue (34.3% per year) is forecast to grow faster 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 (15.6%).


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Past Performance

How has Varroc Engineering performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-67.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VARROC is currently unprofitable.

Growing Profit Margin: VARROC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VARROC is unprofitable, and losses have increased over the past 5 years at a rate of 67% per year.

Accelerating Growth: Unable to compare VARROC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VARROC is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (33.8%).


Return on Equity

High ROE: VARROC has a negative Return on Equity (-3.89%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Varroc Engineering's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VARROC's short term assets (₹83.1B) exceed its short term liabilities (₹30.3B).

Long Term Liabilities: VARROC's short term assets (₹83.1B) exceed its long term liabilities (₹59.5B).


Debt to Equity History and Analysis

Debt Level: VARROC's net debt to equity ratio (71.3%) is considered high.

Reducing Debt: VARROC's debt to equity ratio has increased from 67.6% to 77.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VARROC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VARROC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 13.8% each year


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.51%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VARROC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VARROC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VARROC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VARROC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: VARROC is not paying a notable dividend for the Indian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VARROC has not reported any payouts.


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Management

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

3.9yrs

Average management tenure


CEO

Tarang Jain (60 yo)

21.42yrs

Tenure

₹26,290,000

Compensation

Mr. Tarang Jain serves as the Executive Non-Independent Chairman of the Board at Varroc Engineering Limited since November 10, 2020. He serves as the Managing Director of Varroc Engineering Ltd. since 2001...


Leadership Team

Experienced Management: VARROC's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: VARROC's board of directors are considered experienced (4.9 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 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
  • Implied Market Cap: ₹47.471b
  • Shares outstanding: 152.79m
  • Website: https://varroc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.