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Last Updated: April 2, 2026, 3:54 am
Author: Getaka|Social: XLinkedIn

Varroc Engineering Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹191.08Overvalued by 60.03%vs CMP ₹478.00

P/E (29.4) × ROE (7.4%) × BV (₹110.00) × DY (0.21%)

₹320.59Overvalued by 32.93%vs CMP ₹478.00
MoS: -49.1% (Negative)Confidence: 50/100 (Moderate)Models: 1 Under, 1 Fair, 5 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹464.8230%Fair (-2.8%)
Graham NumberEarnings₹169.0718%Over (-64.6%)
DCFCash Flow₹232.1814%Over (-51.4%)
Net Asset ValueAssets₹110.1310%Over (-77%)
EV/EBITDAEnterprise₹658.2412%Under (+37.7%)
Earnings YieldEarnings₹115.5010%Over (-75.8%)
Revenue MultipleRevenue₹266.637%Over (-44.2%)
Consensus (7 models)₹320.59100%Overvalued
Key Drivers: EPS CAGR 143.3% lifts DCF — verify sustainability. | Wide model spread (₹110–₹658) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 143.3%

*Investments are subject to market risks

Investment Snapshot

63
Varroc Engineering Ltd scores 63/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health48/100 · Moderate
ROCE 17.1% GoodROE 7.4% AverageD/E 0.58 ModerateInterest Coverage 0.0x RiskyProfitable 2/5 years Inconsistent
Smart Money60/100 · Moderate
FII holding up 0.44% (6mo) Slight increasePromoter holding at 75.0% Stable
Earnings Quality75/100 · Strong
OPM expanding (7% → 10%) ImprovingWorking capital: -35 days (improving) Efficient
Quarterly Momentum80/100 · Strong
Revenue (4Q): +7% YoY GrowingProfit (4Q): +73% YoY Strong
Industry Rank50/100 · Moderate
P/E 29.4 vs industry 36.1 In-lineROCE 17.1% vs industry 20.4% Average3Y sales CAGR: 12% Moderate

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Varroc Engineering Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
20/100
Low
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 29.4 vs Ind 36.1 | ROCE 17.1% | ROE 7.4% | CFO/NP N/A
Balance Sheet Stress
30/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.58x | IntCov 0.0x | Current 0.69x | Borrow/Reserve 0.55x
Cash Flow Reliability
29/100
Weak
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹70 Cr | CFO/NP N/A
Ownership Accumulation
0
Neutral
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII +0.06 pp | DII -0.35 pp | Prom 0.00 pp
Business Momentum
+4
Watch closely
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales +3.7% | Q NP -117.5% | Q OPM 0.0 pp
Derived FieldValueHow it is derived
Valuation Gap %-32.9%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.55xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change+0.06 ppLatest FII% minus previous FII%
DII Change-0.35 ppLatest DII% minus previous DII%
Promoter Change0.00 ppLatest promoter% minus previous promoter%
Shareholder Count Change-3,549Latest shareholder count minus previous count
Quarterly Sales Change+3.7%Latest quarter sales vs previous quarter sales
Quarterly Profit Change-117.5%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change0.0 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:54 am

Market Cap 7,309 Cr.
Current Price 478
Intrinsic Value₹320.59
High / Low 695/365
Stock P/E29.4
Book Value 110
Dividend Yield0.21 %
ROCE17.1 %
ROE7.37 %
Face Value 1.00
PEG Ratio0.21

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Varroc Engineering Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Varroc Engineering Ltd 7,309 Cr. 478 695/36529.4 1100.21 %17.1 %7.37 % 1.00
Fiem Industries Ltd 5,197 Cr. 1,975 2,555/1,15621.6 4101.52 %27.8 %21.0 % 10.0
Lumax Industries Ltd 4,493 Cr. 4,805 6,970/2,10025.8 8730.73 %16.4 %19.3 % 10.0
Uravi Defence & Technology Ltd 139 Cr. 122 588/10767.6 44.20.00 %%5.31 % 10.0
Industry Average4,284.50 Cr1,845.0036.10359.300.62%20.43%13.25%7.75

All Competitor Stocks of Varroc Engineering Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 1,7231,6991,8061,8871,8851,9751,8992,0812,0752,0992,0282,2072,288
Expenses 1,5821,5341,6231,6931,7091,7541,7251,8731,8891,8781,8332,0042,078
Operating Profit 141165183194176221174208186221195203210
OPM % 8%10%10%10%9%11%9%10%9%11%10%9%9%
Other Income 421-915341267-88-51673-100
Interest 51534950504544434241363231
Depreciation 82928085898280828181818382
Profit before tax 11414474711055691-254714492-3
Tax % -91%3%23%25%-443%44%39%36%82%51%25%31%245%
Net Profit 22403456384583458-452310763-11
EPS in Rs 1.342.592.113.5525.053.722.123.64-3.101.356.883.99-0.67

Last Updated: March 3, 2026, 1:56 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 26, 2026, 9:16 am

MetricMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 6,7707,9099,29910,27912,03611,1224,3745,8446,8917,5528,1548,622
Expenses 6,2067,3418,7169,39810,97810,3064,0365,4846,3166,7967,3797,793
Operating Profit 5645685828811,059816338360575756775828
OPM % 8%7%6%9%9%7%8%6%8%10%10%10%
Other Income 2297317210812294-556-996-82169-112-81
Interest 475-4390869713989118190194170140
Depreciation 254292337386566732274305337337323327
Profit before tax 6339232751651939-581-1,059-773294169280
Tax % 73%6%4%13%17%94%8%5%6%-81%59%
Net Profit 173703134514293-629-1,107-81753270182
EPS in Rs 16.06353.36254.2936.5731.540.01-41.36-72.64-53.6634.434.0111.55
Dividend Payout % 16%1%13%1%14%21,284%0%0%0%0%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)2076.47%-15.41%44.09%-4.88%-99.30%-21066.67%-75.99%26.20%165.12%-86.84%
Change in YoY Net Profit Growth (%)0.00%-2091.88%59.49%-48.97%-94.42%-20967.37%20990.67%102.19%138.92%-251.96%

Varroc Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2015-2016 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:-6%
3 Years:12%
TTM:8%
Compounded Profit Growth
10 Years:45%
5 Years:298%
3 Years:28%
TTM:-64%
Stock Price CAGR
10 Years:%
5 Years:12%
3 Years:15%
1 Year:-5%
Return on Equity
10 Years:-2%
5 Years:-20%
3 Years:-5%
Last Year:7%

Last Updated: September 5, 2025, 1:50 pm

Balance Sheet

Last Updated: December 4, 2025, 2:11 am

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 101011121313151515151515
Reserves 1,0731,7372,1722,8153,0532,9913,0131,9739611,4821,5501,669
Borrowings 1,6511,6171,5101,1942,4324,2553,6951,6251,8061,3901,118915
Other Liabilities 1,6951,8692,1542,7803,1423,6444,3697,3751,8321,6431,9842,174
Total Liabilities 4,4285,2335,8476,8028,64110,90411,09210,9894,6144,5304,6674,773
Fixed Assets 2,0542,3902,3962,8043,5605,2835,2312,0462,0512,0272,0162,165
CWIP 17831529334499979085614013580103115
Investments 22122933603623303763884215306979
Other Assets 2,1742,5152,8673,2943,7204,5004,6298,4162,0071,8932,4792,414
Total Assets 4,4285,2335,8476,8028,64110,90411,09210,9894,6144,5304,6674,773

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 1282906761,0754741,414474636686638737
Cash from Investing Activity + -286-575-577-545-1,769-1,259-613-762-448-166-245
Cash from Financing Activity + 7038694-5231,129733-152-335-216-664-490
Net Cash Flow -871011936-166888-292-46122-1921
Free Cash Flow -222-30952497-95127-254-208116420465
CFO/OP 33%58%125%136%57%189%146%197%135%92%94%

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow563.00567.00581.00880.00-1.00812.00335.00359.00574.00755.00774.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 58554550413613732322430
Inventory Days 51494649435616458555251
Days Payable 90929411499124396127999498
Cash Conversion Cycle 1912-3-15-15-32-95-36-12-19-16
Working Capital Days 2221-17-16-49-96-217-18-77-33-35
ROCE %11%12%16%13%3%3%2%8%17%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs 5.04%5.07%5.00%4.57%4.22%4.24%3.80%3.89%3.92%3.99%4.30%4.36%
DIIs 12.02%12.21%12.43%11.44%12.15%12.74%12.65%12.49%12.79%13.03%12.75%12.40%
Public 7.94%7.73%7.58%8.99%8.64%8.04%8.54%8.62%8.30%7.99%7.97%8.23%
No. of Shareholders 87,12684,43381,78988,08086,73889,54999,50098,41795,59491,28788,84185,292

Shareholding Pattern Chart

No. of Shareholders

Varroc Engineering Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Flexi Cap Fund 10,200,509 0.55 551.810,000,0002026-03-23 14:27:282.01%
ICICI Prudential Manufacturing Fund 703,946 0.58 38.08548,3142026-02-23 05:15:4028.38%
HSBC ELSS Tax saver Fund 639,477 0.86 34.59720,7132026-03-23 11:46:23-11.27%
HDFC Multi Cap Fund 496,080 0.14 26.84496,0802025-04-22 15:56:520%
ICICI Prudential Transportation and Logistics Fund 490,545 0.87 26.54480,8182026-01-24 01:01:202.02%
Nippon India Focused Fund 428,721 0.27 23.191,485,4672026-03-23 04:24:30-71.14%
ICICI Prudential ELSS Tax Saver Fund 282,271 0.11 15.27276,3002026-03-22 15:27:152.16%
WhiteOak Capital Flexi Cap Fund 111,427 0.08 6.03158,1612026-01-26 05:42:40-29.55%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 1.001.001.001.001.00
Basic EPS (Rs.) 4.0134.43-53.66-72.64-46.75
Diluted EPS (Rs.) 4.0134.43-53.66-72.64-46.75
Cash EPS (Rs.) 25.4853.96-31.79-52.4715.11
Book Value[Excl.RevalReserv]/Share (Rs.) 102.4399.8965.72131.82200.02
Book Value[Incl.RevalReserv]/Share (Rs.) 102.4399.8965.72131.82200.02
Revenue From Operations / Share (Rs.) 533.68494.27449.18382.50739.76
PBDIT / Share (Rs.) 52.7852.4339.5725.7434.29
PBIT / Share (Rs.) 31.6230.3917.535.81-24.29
PBT / Share (Rs.) 10.8417.705.07-1.94-41.99
Net Profit / Share (Rs.) 4.3231.92-53.83-72.41-43.48
NP After MI And SOA / Share (Rs.) 4.0134.43-53.66-72.64-41.36
PBDIT Margin (%) 9.8810.608.806.724.63
PBIT Margin (%) 5.926.143.901.51-3.28
PBT Margin (%) 2.033.581.12-0.50-5.67
Net Profit Margin (%) 0.806.45-11.98-18.92-5.87
NP After MI And SOA Margin (%) 0.756.96-11.94-18.99-5.59
Return on Networth / Equity (%) 3.9135.13-83.98-55.80-20.86
Return on Capital Employeed (%) 22.9019.3315.333.51-7.32
Return On Assets (%) 1.3111.53-17.74-10.09-5.62
Long Term Debt / Equity (X) 0.200.430.420.120.30
Total Debt / Equity (X) 0.600.801.670.780.58
Asset Turnover Ratio (%) 1.771.650.550.420.35
Current Ratio (X) 0.900.780.610.980.69
Quick Ratio (X) 0.620.470.380.900.49
Inventory Turnover Ratio (X) 11.597.055.202.762.52
Interest Coverage Ratio (X) 4.744.133.183.323.22
Interest Coverage Ratio (Post Tax) (X) 2.253.621.180.34-2.42
Enterprise Value (Cr.) 7392.108769.125142.596749.786612.31
EV / Net Operating Revenue (X) 0.901.160.741.150.58
EV / EBITDA (X) 9.1710.958.5117.1612.62
MarketCap / Net Operating Revenue (X) 0.801.010.550.900.49
Price / BV (X) 4.205.123.902.661.84
Price / Net Operating Revenue (X) 0.801.010.550.900.49
EarningsYield 0.010.06-0.21-0.20-0.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Varroc Engineering Ltd. is a Public Limited Listed company incorporated on 11/05/1988 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L28920MH1988PLC047335 and registration number is 047335. Currently Company is involved in the business activities of Manufacture of electric lighting equipment. Company's Total Operating Revenue is Rs. 7368.58 Cr. and Equity Capital is Rs. 15.28 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Auto Ancl - Equipment LampPlot No. L-4, MIDC, Aurangabad District Maharashtra 431136Contact not found
Management
NamePosition Held
Mr. Tarang JainChairman & Managing Director
Mr. Arjun JainWholeTime Director & CEO
Mr. Dhruv JainWholeTime Director & CEO
Mr. Gautam P KhandelwalIndependent Director
Mr. Marc SzulewiczIndependent Director
Mrs. Vijaya SampathIndependent Director
Mr. Vinish KathuriaIndependent Director
Ms. Liselott KilaasIndependent Director
Mr. Akshaykumar ChudasamaIndependent Director
Mr. Padmanabh SinhaIndependent Director

FAQ

What is the intrinsic value of Varroc Engineering Ltd and is it undervalued?

As of 04 April 2026, Varroc Engineering Ltd's intrinsic value is ₹320.59, which is 32.93% lower than the current market price of ₹478.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (7.37 %), book value (₹110), dividend yield (0.21 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Varroc Engineering Ltd?

Varroc Engineering Ltd is trading at ₹478.00 as of 04 April 2026, with a FY2026-2027 high of ₹695 and low of ₹365. The stock is currently in the middle of its 52-week range. Market cap stands at ₹7,309 Cr..

How does Varroc Engineering Ltd's P/E ratio compare to its industry?

Varroc Engineering Ltd has a P/E ratio of 29.4, which is below the industry average of 36.10. This is broadly in line with or below the industry average.

Is Varroc Engineering Ltd financially healthy?

Key indicators for Varroc Engineering Ltd: ROCE of 17.1 % indicates efficient capital utilization; ROE of 7.37 % is below ideal levels (industry average: 13.25%). Dividend yield is 0.21 %.

Is Varroc Engineering Ltd profitable and how is the profit trend?

Varroc Engineering Ltd reported a net profit of ₹70 Cr in Mar 2025 on revenue of ₹8,154 Cr. Compared to ₹-1,107 Cr in Mar 2022, the net profit shows an improving trend.

Does Varroc Engineering Ltd pay dividends?

Varroc Engineering Ltd has a dividend yield of 0.21 % at the current price of ₹478.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Varroc Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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