Varroc Engineering Ltd
NSE: VARROC BSE: 541578
₹467.40
(-4.14%)
Thu, 09 Apr 2026, 04:40 am
Market Cap71.52B
PE Ratio40.51
Dividend0.21
Producer Manufacturing
Auto Parts: OEM
24.5KVarroc Engineering Analysis
dividend
- Dividends paid are well covered by earnings (5.3x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
- Varroc Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Varroc Engineering's dividend is above the markets top 25% of dividend payers in India (3.08%).
- Varroc Engineering only just started paying a dividend, it is too early to tell if payments are increasing.
- It is too early to tell whether Varroc Engineering has stable dividend payments.
future
- Varroc Engineering's earnings are expected to grow significantly at over 20% yearly.
- Varroc Engineering's earnings growth is expected to exceed the India market average.
- Varroc Engineering's earnings growth is expected to exceed the low risk savings rate of 7.2%.
- Varroc Engineering's revenue growth is expected to exceed the India market average.
- Cash flow for Varroc Engineering is expected to decrease over the next 2 years.
- Varroc Engineering is expected to be loss making next year.
- Varroc Engineering's net income is expected to decrease over the next 2 years.
- Varroc Engineering is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Performance (ROE) is not expected to exceed the current IN Auto Components industry average.
- A decline in Varroc Engineering's performance (ROE) is expected over the next 3 years.
- Varroc Engineering's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Varroc Engineering's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
health
- Varroc Engineering is profitable, therefore cash runway is not a concern.
- Varroc Engineering is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (55.6%, greater than 20% of total debt).
- Debt is covered by short term assets, assets are 1.5x debt.
- Varroc Engineering's cash and other short term assets cover its long term commitments.
- The level of debt compared to net worth has been reduced over the past 5 years (136.7% vs 70.8% today).
- Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
- Varroc Engineering's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Varroc Engineering's level of debt (70.8%) compared to net worth is high (greater than 40%).
- High level of physical assets or inventory.
management
- The tenure for the Varroc Engineering management team is about average.
- The average tenure for the Varroc Engineering board of directors is less than 3 years, this suggests a new board.
misc
- Varroc Engineering has significant price volatility in the past 3 months.
past
- Varroc Engineering's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Varroc Engineering's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Varroc Engineering used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
- Varroc Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
- Varroc Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Varroc Engineering's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.
value
- Varroc Engineering is good value based on assets compared to the IN Auto Components industry average.
- Varroc Engineering is good value based on expected growth next year.
- Varroc Engineering is good value based on earnings compared to the IN Auto Components industry average.
- Varroc Engineering is good value based on earnings compared to the India market.
- NSEI:VARROC is up 21% outperforming the Auto Components industry which returned 13.2% over the past month.
- NSEI:VARROC is up 21% outperforming the market in India which returned 8% over the past month.
- Varroc Engineering's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Varroc Engineering's share price is below the future cash flow value, but not at a substantial discount (< 40%).
- VARROC underperformed the Auto Components industry which returned -22.4% over the past year.
- VARROC underperformed the Market in India which returned -14.5% over the past year.
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Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800