Varroc Engineering Intrinsic Value
VARROC Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹191.52 | ₹153.22 - ₹229.82 | -67.9% | EPS: ₹15.96, Sector P/E: 12x |
| Book Value Method | asset | ₹1065.33 | ₹958.80 - ₹1171.86 | +78.5% | Book Value/Share: ₹1065.33, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1193.80 | ₹1074.42 - ₹1313.18 | +100.0% | Revenue/Share: ₹5896.00, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1193.80 | ₹1074.42 - ₹1313.18 | +100.0% | EBITDA: ₹828.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1492.25 | ₹1193.80 - ₹1790.70 | +150.0% | CF Growth: 11.7%, Discount: 15% |
| PEG Ratio Method | growth | ₹179.07 | ₹161.16 - ₹196.98 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹179.07 | ₹161.16 - ₹196.98 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1193.80 | ₹1074.42 - ₹1313.18 | +100.0% | ROE: 15.8%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹618.52 | ₹556.67 - ₹680.37 | +3.6% | EPS: ₹15.96, BVPS: ₹1065.33 |
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Valuation Comparison Chart
VARROC Intrinsic Value Analysis
What is the intrinsic value of VARROC?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Varroc Engineering (VARROC) is ₹1065.33 (median value). With the current market price of ₹596.90, this represents a +78.5% variance from our estimated fair value.
The valuation range spans from ₹179.07 to ₹1492.25, indicating ₹179.07 - ₹1492.25.
Is VARROC undervalued or overvalued?
Based on our multi-method analysis, Varroc Engineering (VARROC) appears to be trading below calculated value by approximately 78.5%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 3.87 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 2.92 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 15.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 9.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.89x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Varroc Engineering
Additional stock information and data for VARROC
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹737 Cr | ₹615 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹639 Cr | ₹556 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹686 Cr | ₹462 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹636 Cr | ₹255 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹474 Cr | ₹168 Cr | Positive Free Cash Flow | 7/10 |