Varroc Engineering Limited

NSEI:VARROC Stock Report

Market Cap: ₹82.0b

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 (₹531.2) is trading above our estimate of fair value (₹419.69)

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?

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/Revenue1.2x
Enterprise Value/EBITDA11.9x
PEG Ratio1.6x

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 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
VARROC Varroc Engineering
15.4x9.7%₹82.0b

Price-To-Earnings vs Peers: VARROC 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 VARROC'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: VARROC 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 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 Ratio15.4x
Fair PE Ratio26.9x

Price-To-Earnings vs Fair Ratio: VARROC 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 VARROC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹531.20
₹620.00
+16.7%
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₹380.00n/a7
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
Nov ’23₹307.40
₹404.25
+31.5%
19.1%₹529.00₹260.00₹457.658

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

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