Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, and precision metallic components worldwide. More Details
Reasonable growth potential with mediocre balance sheet.
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 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: VARROC's weekly volatility (6%) has been stable over the past year.
7 Day Return
IN Auto Components
1 Year Return
IN Auto Components
Return vs Industry: VARROC exceeded the Indian Auto Components industry which returned 94.7% over the past year.
Return vs Market: VARROC exceeded the Indian Market which returned 64.8% over the past year.
Long-Term 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
No news available
Is Varroc Engineering undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VARROC (₹375.55) is trading below our estimate of fair value (₹389.34)
Significantly Below Fair Value: VARROC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VARROC is unprofitable, so we can't compare its PE Ratio to the IN Auto Components industry average.
PE vs Market: VARROC is unprofitable, so we can't compare its PE Ratio to the Indian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VARROC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VARROC is overvalued based on its PB Ratio (1.9x) compared to the IN Auto Components industry average (1.7x).
How is Varroc Engineering forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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 (6.8%).
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's is expected to become profitable in the next 3 years.
Revenue vs Market: VARROC's revenue (16% per year) is forecast to grow faster than the Indian market (13.4% per year).
High Growth Revenue: VARROC's revenue (16% 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 (12.7%).
How has Varroc Engineering performed over the past 5 years?
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 49.3% 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 (-33.4%).
Return on Equity
High ROE: VARROC has a negative Return on Equity (-23.41%), as it is currently unprofitable.
How is Varroc Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: VARROC's short term assets (₹35.0B) do not cover its short term liabilities (₹60.2B).
Long Term Liabilities: VARROC's short term assets (₹35.0B) exceed its long term liabilities (₹17.4B).
Debt to Equity History and Analysis
Debt Level: VARROC's debt to equity ratio (75.6%) is considered high.
Reducing Debt: VARROC's debt to equity ratio has reduced from 99.5% to 75.6% over the past 5 years.
Debt Coverage: VARROC's debt is well covered by operating cash flow (38.6%).
Interest Coverage: Insufficient data to determine if VARROC's interest payments on its debt are well covered by EBIT.
What is Varroc Engineering current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VARROC's dividend (0.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).
High Dividend: VARROC's dividend (0.8%) is low compared to the top 25% of dividend payers in the Indian market (1.78%).
Stability and Growth of Payments
Stable Dividend: VARROC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: VARROC has only been paying a dividend for 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: Unable to calculate sustainability of dividends as VARROC has not reported any payouts.
Future Payout to Shareholders
Future Dividend Coverage: VARROC's dividends in 3 years are forecast to be well covered by earnings (15.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tarang Jain (59 yo)
Mr. Tarang Jain serves as the Chairman of the Board at Varroc Engineering Limited since November 10, 2020. He serves as the Managing Director of Varroc Engineering Ltd. since 2001 and also serves as its Ex...
Experienced Management: VARROC's management team is considered experienced (4.5 years average tenure).
Experienced Board: VARROC's board of directors are considered experienced (3.3 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.
Varroc Engineering Limited's company bio, employee growth, exchange listings and data sources
- Name: Varroc Engineering Limited
- Ticker: VARROC
- Exchange: NSEI
- Founded: 1988
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: ₹56.180b
- Shares outstanding: 152.79m
- Website: https://www.varroc.com
Number of Employees
- Varroc Engineering Limited
- L-4, MIDC Industrial Area
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/05 12:25|
|End of Day Share Price||2021/05/05 00:00|
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.