Is Varroc Engineering a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Varroc Engineering Ltd is a average quality company .

Is Varroc Engineering undervalued or overvalued?

The key valuation ratios of Varroc Engineering Ltd's currently when compared to its past seem to suggest it is in the Fair zone .

What is Varroc Engineering share price return in the past 10 years?

Data is not available for this company

Is Varroc Engineering a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Varroc Engineering Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Varroc Engineering Ltd - Stock Valuation and Financial Performance

Name: Varroc Engineering
Brand: Varroc Engineering

BSE: 541578 | NSE: VARROC | Auto Ancillary | Small Cap

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Varroc Engineering Share Price

₹508.50 10.50 2.11%
as on 21-Nov'24 16:00

10 Year X-Ray of Varroc Engineering:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	21.9%	15.6%	11.8%	15.6%	12.9%	3%	3.4%	1.9%	8.9%	19.1%	-
Value Creation Index ⓘ	0.6	0.2	-0.1	0.2	0.0	-0.8	-0.8	-0.9	-0.4	0.4	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	6,770	7,909	9,299	10,279	12,036	11,122	4,374	5,844	6,891	7,552	7,839
Sales YoY Gr.	-	16.8%	17.6%	10.5%	17.1%	-7.6%	-60.7%	33.6%	17.9%	9.6%	-
Adj EPS ⓘ	-9.1	34.7	23.7	38	32	-2.3	3.4	-5	2.8	34.6	34.5
YoY Gr.	-	NA	-31.7%	60.3%	-15.9%	-107.2%	NA	-247.2%	NA	1149.8%	-
BVPS (₹) ⓘ	112.6	181.6	190.5	229.6	227.5	222.9	198.2	130.2	63.9	98	105.2
Adj Net Profit ⓘ	-87.7	334	272	468	431	-31	51.8	-76.3	42.4	529	528
Cash Flow from Ops. ⓘ	128	290	677	1,075	474	1,414	474	636	686	638	-
Debt/CF from Ops. ⓘ	12.9	5.5	2.2	1.1	5.2	2.5	6.3	2.4	2.4	1.9	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	1.2%	-8.9%	20%	9.6%
Adj EPS ⓘ	NA	1.6%	117%	1149.8%
BVPSⓘ	-1.5%	-15.5%	-20.9%	53.4%
Share Price	-	3%	17.4%	-7.1%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	-8.1	23.5	13.8	18.7	14.6	-1	1.7	-3	2.9	42.8	34
Op. Profit Mgn % ⓘ	9.1	7.2	6.3	8.8	8.9	7.4	7.7	6.3	8.7	10.1	9.8
Net Profit Mgn % ⓘ	-1.2	4.2	2.9	4.6	3.6	-0.3	1.3	-1.3	0.7	7.1	6.7
Debt to Equity ⓘ	1.5	0.9	0.7	0.4	0.8	1.2	1	0.8	1.7	0.8	0.3
Working Cap Days ⓘ	102	99	92	95	97	111	297	163	82	79	40
Cash Conv. Cycle ⓘ	22	24	15	6	3	-3	-22	-8	-5	-5	-10

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 34.00%

Sales growth is growing at healthy rate in last 3 years 19.97%

Net Profit is growing at healthy rate in last 3 years 116.96%

Debt to equity has declined versus last 3 years average to 0.81

Sales growth is good in last 4 quarters at 10.27%

No data to display

Latest Financials - Varroc Engineering Ltd.

	Standalone	Consolidated
TTM EPS (₹)	28.4	34.5
TTM Sales (₹ Cr.)	4,756	7,839
BVPS (₹.) ⓘ	63.8	105.2
Reserves (₹ Cr.) ⓘ	960	1,592
P/BV ⓘ	7.80	4.73
PE ⓘ	17.56	14.42

From the Market
52 Week Low / High (₹)	432.20 / 717.00
All Time Low / High (₹)	119.20 / 1177.45
Market Cap (₹ Cr.)	7,609
Equity (₹ Cr.)	15.3
Face Value (₹)	1
Industry PE ⓘ	51.1

Management X-Ray of Varroc Engineering:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Varroc Engineering

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Price to Earnings

Enterprise Value to EBIT

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Dividend History

Analyst's Notes

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Key Ratios of Varroc Engineering

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	6,770	7,909	9,299	10,279	12,036	11,122	4,374	5,844	6,891	7,552
Operating Expenses ⓘ	6,153	7,338	8,717	9,398	10,978	10,301	4,036	5,485	6,316	6,793
Manufacturing Costs	667	799	908	1,086	1,136	946	517	680	784	820
Material Costs	4,193	5,049	6,037	6,383	7,576	6,986	2,791	3,849	4,431	4,733
Employee Cost	902	1,040	1,204	1,314	1,501	1,637	510	619	717	809
Other Costs ⓘ	391	450	569	616	765	731	218	336	385	431
Operating Profit ⓘ	617	571	582	881	1,059	821	338	359	575	759
Operating Profit Margin (%)	9.1%	7.2%	6.3%	8.6%	8.8%	7.4%	7.7%	6.1%	8.3%	10.1%
Other Income ⓘ	88	148	94	39	91	99	116	34	30	42
Interest ⓘ	475	84	90	86	97	139	89	118	190	194
Depreciation ⓘ	254	292	337	386	566	732	274	305	337	337
Exceptional Items ⓘ	88	50	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	63	392	327	516	519	39	127	-30	83	315
Tax ⓘ	47	22	14	65	90	37	48	48	44	-238
Profit After Tax	17	370	313	451	429	3	79	-78	39	553
PAT Margin (%)	0.2%	4.7%	3.4%	4.4%	3.6%	0.0%	1.8%	-1.3%	0.6%	7.3%
Adjusted EPS (₹)	1.4	38.4	27.3	36.6	31.5	0.0	-41.4	-72.6	-53.7	34.4
Dividend Payout Ratio (%)	21%	1%	1%	1%	13%	0%	0%	0%	0%	0%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	1,082	1,763	2,185	2,828	3,066	3,005	3,028	1,989	976	1,497
Share Capital ⓘ	10	26	13	13	13	13	15	15	15	15
Reserves ⓘ	1,073	1,737	2,172	2,815	3,053	2,991	3,013	1,973	961	1,482
Minority Interest	21	20	20	21	24	25	28	25	28	29
Debt	1,406	1,405	1,354	980	1,659	2,601	1,758	394	678	859
Long Term Debt	1,023	763	755	636	457	900	936	250	416	652
Short Term Debt	383	642	599	344	1,201	1,700	822	144	262	207
Trade Payables	1,029	1,269	1,550	2,000	2,056	2,380	3,031	1,334	1,196	1,224
Others Liabilities ⓘ	889	775	738	920	1,743	2,774	3,202	7,247	1,735	755
Total Liabilities ⓘ	4,428	5,233	5,847	6,749	8,548	10,784	11,047	10,989	4,614	4,364
Fixed Assets
Gross Block	2,084	2,392	2,974	3,820	5,098	7,288	7,949	3,564	3,934	4,146
Accumulated Depreciation	241	281	593	1,030	1,551	2,005	2,719	1,530	1,883	2,120
Net Fixed Assetsⓘ	1,843	2,111	2,381	2,790	3,546	5,283	5,231	2,033	2,051	2,027
CWIP ⓘ	177	315	293	344	999	790	856	140	135	80
Investmentsⓘ	234	291	293	360	362	330	376	388	421	530
Inventories	586	683	753	864	890	1,076	1,256	616	671	674
Trade Receivables	1,071	1,185	1,138	1,403	1,350	1,089	1,641	518	597	492
Cash Equivalents	69	177	354	329	163	1,069	745	118	327	130
Others Assetsⓘ	448	470	635	660	1,237	1,147	941	7,177	412	431
Total Assets ⓘ	4,428	5,233	5,847	6,749	8,548	10,784	11,047	10,989	4,614	4,364

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	128	290	677	1,075	474	1,414	474	636	686	638
PBT ⓘ	63	392	327	516	519	39	-498	-1,065	-773	294
Adjustment ⓘ	629	191	331	387	574	888	932	1,178	1,260	483
Changes in Working Capital ⓘ	-506	-252	70	299	-491	615	60	596	291	-82
Tax Paid ⓘ	-57	-40	-51	-127	-128	-128	-20	-74	-92	-56
Cash Flow From Investing Activity ⓘ	-245	-579	-565	-601	-1,757	-1,268	-644	-763	-286	-166
Capex	-351	-599	-624	-578	-1,425	-1,387	-728	-844	-571	-218
Net Investments	44	12	34	-3	-395	0	-2	8	283	43
Others ⓘ	62	9	25	-20	62	119	86	73	2	9
Cash Flow From Financing Activityⓘ	70	386	94	-523	1,129	733	-152	-335	-216	-664
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	685	0	0	0
Net Proceeds from Borrowing ⓘ	0	0	0	-131	357	604	284	-137	-40	-372
Interest Paid ⓘ	-98	-85	-86	-86	-95	-121	-158	-156	-263	-208
Dividend Paid ⓘ	-4	-4	-5	-7	-1	-115	0	-6	0	-5
Others ⓘ	172	475	184	-299	868	365	-964	-35	88	-79
Net Cash Flow ⓘ	-47	98	205	-50	-154	879	-322	-462	185	-192

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	1.57	26.15	15.95	17.99	14.55	0.08	2.61	-3.12	2.62	44.72
ROCE (%)	21.93	15.62	11.83	15.58	12.91	2.96	3.43	1.85	8.88	19.13
Asset Turnover Ratio	1.66	1.7	1.73	1.65	1.58	1.15	0.4	0.53	0.89	1.69
PAT to CFO Conversion(x)	7.53	0.78	2.16	2.38	1.1	471.33	6	N/A	17.59	1.15
Working Capital Days
Receivable Days	48	50	44	45	42	40	113	67	29	26
Inventory Days	36	28	27	28	27	32	97	58	34	32
Payable Days	92	80	82	100	97	115	349	199	99	92

Varroc Engineering Ltd Stock News

Varroc Engineering Ltd FAQs

What is the share price of Varroc Engineering?

Company share prices are keep on changing according to the market conditions. The closing price of Varroc Engineering on 21-Nov-2024 16:00 is ₹508.5.

What is the market cap of Varroc Engineering?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Nov-2024 16:00 the market cap of Varroc Engineering stood at ₹7,608.8.

What is the P/E ratio of Varroc Engineering?

The latest P/E ratio of Varroc Engineering as of 21-Nov-2024 16:00 is 17.56.

What is the P/B ratio of Varroc Engineering?

The latest P/B ratio of Varroc Engineering as of 21-Nov-2024 16:00 is 7.80.

What is the 52-week high and low of Varroc Engineering?

The 52-week high of Varroc Engineering is ₹717.0 and the 52-week low is ₹432.2.

What is the TTM revenue of Varroc Engineering?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Varroc Engineering is ₹4,756 ( Cr.) .

About Varroc Engineering Ltd

Varroc Engineering Ltd. is a global tier-1 automotive component group. It commenced operations in India with its Polymer business in 1990. it design, manufacture and supply exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle (OHV) OEMs directly worldwide. It is the second largest Indian auto component group (by consolidated revenue for FY 2017) and a leading tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs (by consolidated revenue for FY 2017). It offers the best design solutions that provides its customers a competitive edge in their markets. This has helped Varroc place itself as the most preferred partner with all leading OEMs in the automotive segment across the world.

Business area of the company

The Company is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components. It also supplies precision metallic components to passenger car, commercial vehicle, two-heeler, three-wheeler and off highway vehicle (OHV). The Company's segments include Polymer, Electrical, Engine valve, Forged components, and Lighting.

Awards

2014: Received the ‘New Part Development Award’ by Honda Motorcycle and Scooter India Private Limited
2014: Named as one of the ‘Top 100 Companies’ in Czech Republic
2014: Named as one of the ‘Top 100 Companies’ in Czech Republic
2015: Won the ‘PSA Best Plant Award’
2016: Awarded the ‘Emerging Manufacturing Giant’ by the honourable Chief Minister of Maharashtra, India, Mr. Devendra Fadnavis, on behalf of Indian Merchant Chambers
2016: Given the ‘Supplier Quality Excellence Award’ by General Motors
2016: Awarded ‘Emerging Manufacturing Giant’ by the chief minister of Maharashtra, India, Mr. Devendra Fadnavis, on behalf of Indian Merchant Chambers
2017: National Safety Council awarded it for ‘Lowest average frequency accident rate and zero accident frequency rate’
2017: Jaguar Land Rover bestowed it with the ‘Global Supplier of the Year Award’
2017: Received the ‘FCA Innovation Award’ for Dodge Challenge Head Lamp 193
2017: Won the ‘2016 General Motors Quality Excellence award
2017: Claimed the ‘Ford Q1 Award’- Only 2nd lighting supplier in China to receive this award
2017: Awarded for ‘Overall Performance Of The Year’ by Maruti Suzuki
2017: Presented with an award for ‘Electrical and Electronics Excellence in Automotive Lighting’ by the International Centre For Automotive Technology
2017: Bagged the ‘Electronics Co. Of The Year’ award by ELCINA
2018: Handed the ‘Best Quality Award’ by FCA
2018: Mr. Tarang Jain, Managing Director, has been inducted into the ‘Automotive Hall of Fame’ at the ET Polymers Global Conference on Plastics in Automotive
2019: Varroc Polymer plant team bagged 2 OHS-India Safety Awards for Innovation and Excellence
2019: Varroc’s Paper on ‘ELECTRICAL MOBIITY’ has been awarded the ‘BEST PAPER’ at the SIAT 2019
2019: Varroc’s Polymer division bagged the ‘Award for Delivery Management 2018-19’ at the Annual Supplier Conference of Honda Two-wheelers Ltd.
2019: Varroc’s polymer division recognized by Volvo Eicher Commercial Vehicles (VECV) with Outstanding Contribution in New Product Development award
2019: Performance Award for ‘Incoming Quality Improvement’ at Suzuki Motorcycles India Pvt. Ltd.’s 2019 Suppliers’ Meet.
2019: Varroc Polymer Business recognized for ‘Excellence in Delivery’ by Mahle Behr India Pvt Ltd., during their Supplier Meet 2019

Milestones

1990: Began journey through Polymer business
1996: Emergence of Electrical-Electronics business unit
1997: Engine Valves manufacturing
2000: Established as 'Supplier of Choice' for Bajaj Electronics Pvt. Ltd.
2004: Emergence of Metallic Forgings business unit
2005: Formed Varroc Exhaust System Pvt. Ltd. for two-wheeler & three-wheeler catalytic converters
2007: Acquired first overseas company - IMES (Italy), a forging business
2011: Acquired TRIOM (Italy), a hi-end lighting systems player for global two-wheelers
2012: Acquired Visteon's Global PV Lighting Business
2014: Received Investment by Omega TC Holdings Pte. Ltd. and Tata Capital Financial Services Limited
2014: Acquired 50% stake in Varroc TYC Corporation BVI (China)
2015: Signed a letter of intent with Heraeus, Germany based technology group, for catalytic converters for two-wheelers in India
2015: Acquired Sa-Ba, an exterior automotive lighting company in Turkey
2015: Developed Electronic Fuel-injection Technology for two-wheelers and three-wheelers in India
2015: Varroc Engineering Ltd. got listed on BSE and NSE
2015: Announced intention to set up two new manufacturing facilities in Chennai, India and Poland to further expand globally
2019: Acquisition of 74% stake in CarIQ, a leading telematics solutions provider (August 2019)
2019: Morocco and Brazil facilities started in February/March 2019.
2020: Varroc Engineering’s wholly-owned subsidiary -- VarrocCorp Holding B.V., the Netherlands (VCHBV) has acquired balance 30% stake i.e. 60,000 equity shares of Varroc-Elba Electronics S.R.L (Varroc Elba) held by the other JV Partner, ELBA SA, Romania for an aggregate consideration of Euro 1.05M.
2020: Varroc Engineering’s overseas Wholly Owned Subsidiary (WOS) -- Aries Mentor Holding B.V. (AMHBV) situated in Netherlands has merged with VarrocCorp Holding B.V. (VCHBV), WOS of the company with effect from March 4, 2020.