Varroc Engineering Limited

NSEI:VARROC Stock Report

Market Cap: ₹88.4b

Varroc Engineering Valuation

Is VARROC 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 VARROC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VARROC (₹588.95) is trading above our estimate of fair value (₹416.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VARROC. This is calculated by dividing VARROC's market cap by their current earnings.
What is VARROC's PE Ratio?
PE Ratio17.1x
Earnings₹5.28b
Market Cap₹88.44b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VARROC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.2x
ASKAUTOLTD ASK Automotive
42.3x18.9%₹90.6b
SANSERA Sansera Engineering
47.5x27.5%₹92.4b
SHRIPISTON Shriram Pistons & Rings
20.6x14.3%₹94.5b
505242 Dynamatic Technologies
62.6x33.6%₹57.7b
VARROC Varroc Engineering
17.1x12.1%₹88.4b

Price-To-Earnings vs Peers: VARROC is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (43.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.7x-31.3%US$358.22m
505100 India Radiators
0.9xn/aUS$98.11k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
VARROC 17.1xIndustry Avg. 31.5xNo. of Companies18PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VARROC is good value based on its Price-To-Earnings Ratio (17.1x) compared to the Indian Auto Components industry average (31.5x).

Price to Earnings Ratio vs Fair Ratio

What is VARROC'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.

VARROC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: VARROC is good value based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).

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 VARROC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹588.95
₹552.50
-6.2%
19.6%₹730.00₹460.00n/a4
Dec ’25₹519.35
₹552.50
+6.4%
19.6%₹730.00₹460.00n/a4
Nov ’25₹525.25
₹620.00
+18.0%
19.1%₹800.00₹500.00n/a4
Oct ’25₹590.50
₹609.00
+3.1%
15.7%₹770.00₹500.00n/a5
Sep ’25₹568.85
₹603.50
+6.1%
17.5%₹770.00₹450.00n/a6
Aug ’25₹629.55
₹637.33
+1.2%
16.8%₹780.00₹490.00n/a6
Jul ’25₹671.15
₹637.33
-5.0%
16.8%₹780.00₹490.00n/a6
Jun ’25₹557.25
₹637.33
+14.4%
16.8%₹780.00₹490.00n/a6
May ’25₹525.70
₹588.83
+12.0%
20.5%₹780.00₹400.00n/a6
Apr ’25₹512.30
₹557.50
+8.8%
17.8%₹700.00₹400.00n/a6
Mar ’25₹507.75
₹550.83
+8.5%
18.9%₹700.00₹400.00n/a6
Feb ’25₹586.75
₹488.50
-16.7%
14.1%₹585.00₹380.00n/a6
Jan ’25₹559.60
₹488.50
-12.7%
14.1%₹585.00₹380.00n/a6
Dec ’24₹571.60
₹476.14
-16.7%
14.8%₹585.00₹380.00₹519.357
Nov ’24₹457.65
₹413.67
-9.6%
18.8%₹570.00₹320.00₹525.256
Oct ’24₹486.20
₹413.67
-14.9%
18.8%₹570.00₹320.00₹590.506
Sep ’24₹423.10
₹379.14
-10.4%
10.9%₹424.00₹320.00₹568.857
Aug ’24₹352.80
₹348.14
-1.3%
12.2%₹402.00₹260.00₹629.557
Jul ’24₹337.00
₹348.14
+3.3%
12.2%₹402.00₹260.00₹671.157
Jun ’24₹307.65
₹348.14
+13.2%
12.2%₹402.00₹260.00₹557.257
May ’24₹291.40
₹359.86
+23.5%
15.9%₹435.00₹260.00₹525.707
Apr ’24₹249.35
₹359.86
+44.3%
15.9%₹435.00₹260.00₹512.307
Mar ’24₹249.15
₹355.50
+42.7%
15.4%₹435.00₹260.00₹507.758
Feb ’24₹274.65
₹364.14
+32.6%
15.3%₹437.00₹260.00₹586.757
Jan ’24₹296.85
₹362.14
+22.0%
14.7%₹435.00₹260.00₹559.607
Dec ’23₹294.65
₹362.14
+22.9%
14.7%₹435.00₹260.00₹571.607

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/31 12:30
End of Day Share Price 2024/12/31 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 here.

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 .

Analyst Sources

Varroc Engineering Limited is covered by 12 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.