Varroc Engineering Intrinsic Value

VARROC • Automobiles
Current Stock Price
₹596.90
Primary Intrinsic Value
₹191.52
Market Cap
₹895.4 Cr
+78.5% Upside
Median Value
₹1065.33
Value Range
₹179 - ₹1492
Assessment
Trading Below Calculated Value
Safety Margin
44.0%

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
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check VARROC share price latest .

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

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