Varroc Engineering Ltd.

NSE: VARROC  SECTOR: Auto Ancillary

182.8
-1.05 (-0.57%)

Price Summary

Today's High

₹ 187.9

Today's Low

₹ 182.15

52 Week High

₹ 525

52 Week Low

₹ 119.2

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyPoor
The company seems highly inefficient in case of asset management.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

Company Essentials

Market Cap

2464.3547684 Cr.

Enterprise Value

2851.8747684 Cr.

No. of Shares

13.481153 Cr.

P/E

24.89

P/B

2.2

Face Value

₹ 1

Div. Yield

2.19%

Book Value (TTM)

₹  82.9517

CASH

6.735 Cr.

DEBT

394.255 Cr.

Promoter Holding

85%

EPS (TTM)

₹  7.3456

Sales Growth

25.7102475362647%

ROE

11.1764331900985 %

ROCE

14.1525177466894 %

Profit Growth

4.64566234499076 %

* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

Your Added Ratios

Please login to Add & View your own added ratios.

Login

Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

Sales Growth (in Cr.)

1 Year25.71%
3 Year18.18%
5 Year13.21%

Profit Growth (in Cr.)

1 Year71.19%
3 Year-5.73%
5 Year34.64%

ROE%

1 Year11.18%
3 Year7.83%
5 Year-1.44%

ROCE %

1 Year14.15%
3 Year10.3%
5 Year10.4%

Debt/Equity

0.349279965271779

Price to Cash Flow

7.21

Interest Cover Ratio

5.4354480753042

CFO/PAT (5 Yr. Avg.)

1.78230242043621

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Mar 2020 85 0
Dec 2019 85 0
Sep 2019 85 0
Jun 2019 85 0
Mar 2019 85 0
* Figures given above are % of equity capital

 Strengths

  • The company has shown a good revenue growth of 18.1807189962012% for the Past 3 years.
  • Company’s PEG ratio is 0.441583051444816.
  • The company has an efficient Cash Conversion Cycle of 26.7581658361082 days.
  • The company has a good cash flow management; CFO/PAT stands at 1.78230242043621.
  • The company has a high promoter holding of 85%.

 Limitations

  • The company has shown a poor profit growth of -5.72873707912063% for the Past 3 years.
  • Company has a poor ROE of 7.82545725602503% over the past 3 years.
  • Company has contingent liabilities of 761.514 Cr.
  • The company is trading at a high PE of 24.89.

Quarterly Result (All Figures in Cr.)

PARTICULARS Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020
Net Sales 613.75 626.05 587.23 570.62 520.05
Total Expenditure 569.96 564.87 528.08 502.51 481.64
Operating Profit 43.78 61.18 59.15 68.11 38.41
Other Income 9.49 7.24 12.46 8.23 40.35
Interest 9.45 11.16 10.23 9.68 11.31
Depreciation 28.65 30.91 32.51 33.37 34.91
Exceptional Items 0 0 0 0 0
Profit Before Tax 15.18 26.35 28.88 33.28 32.54
Tax 6.89 7.6 4.48 9.78 0.17
Profit After Tax 8.29 18.75 24.41 23.5 32.37
Adjusted EPS (Rs) 0.06 0.14 0.18 0.17 0.24

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Net Sales 1478.43 1558.92 1676.01 2046.89 2573.15
Total Expenditure 1323.9 1425.62 1515.31 1828.74 2304.04
Operating Profit 154.53 133.3 160.7 218.15 269.11
Other Income 20.17 144 32.45 28.77 51.48
Interest 424.8 47.91 46.86 40.15 39.2
Depreciation 80.28 81.93 96.28 101.61 107.52
Exceptional Items 0 0 0 0 0
Profit Before Tax -330.37 147.46 50.01 105.16 173.87
Tax 8.58 4.77 8.01 35.33 54.33
Net Profit -338.96 142.68 42 69.83 119.54
Adjusted EPS (Rs.) -32.39 13.63 3.41 5.67 8.87

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 10.47 27.09 14.33 13.48 13.48
Total Reserves 284.39 672.88 932.91 998.07 1115.28
Borrowings 797.38 418.99 301.47 220.46 156
Other N/C liabilities 21.53 14.36 6.47 36.66 52.09
Current liabilities 549.46 613.65 503.69 691.36 701.59
Total Liabilities 1663.23 1746.97 1758.87 1960.03 2038.44
Assets
Net Block 694.62 721 764.25 772.33 854.27
Capital WIP 31.5 44.4 25.31 21.71 50.62
Investments 498.57 495.48 494.36 493.36 492.25
Loans & Advances 16.31 24.76 8.09 19.22 24.74
Other N/C Assets 3.99 4.6 4.15 18.42 37.19
Current Assets 418.25 456.74 462.71 634.99 579.38
Total Assets 1663.23 1746.97 1758.87 1960.03 2038.44
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Profit Before Tax -330.37 147.46 50.01 105.16 173.87
Adjustment 485.36 -7.29 127.39 129.03 116.7
Working Capital Changes -105.82 -91.61 -16.97 -54.28 88.89
Tax Paid -9.85 -2.51 -9.07 -23.33 -37.67
Operating Cash Flow 39.31 46.04 151.36 156.57 341.79
Investing Cash Flow -20.52 -85.37 -80.91 -96.66 -216.84
Financing Cash Flow -20.67 33.41 -76.51 -46.83 -124.67
Net Cash Flow -1.88 -5.92 -6.05 13.09 0.28

Corporate Actions

Ratings & Research Reports

Company Presentations

Company News

Varroc Engineering Stock Price Analysis and Quick Research Report. Is Varroc Engineering an attractive stock to invest in?

.

 

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Varroc Engineering is performing and if it is the right time to buy the stock of Varroc Engineering with detailed analysis.

  • The mainstream of revenue for Auto Sector is their sales, Varroc Engineering has reported outstanding sales growth of 25.7102475362647 % and in the latest quarter sales was Rs 520.047 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 12.2396459133049 times for Varroc Engineering . It is managing its inventory poorly .
     
  • The company reported Profit growth of 71.1871688386081 % over the year, where the latest year profit is Rs 119.54 Cr compared to the previous year of Rs 69.83 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
     
  • The operating profit of the company in the latest quarter is Rs 78.754 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
     
  • Varroc Engineering has a average ROE of 11.1764331900985 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Varroc Engineering has a low Debt to Equity ratio of 0.349279965271779.
     
  • Varroc Engineering pays a dividend of 4 Rs per share. It tells us that a company dislikes to share profits with its shareholders. The dividend yield is low at 2.1882 %.
     
  • The share of promoter in the company is high at 85 %, where the pledging is 0 %.
     
  • What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Varroc Engineering is 24.8856458287955 compared to the 5 year average PE of 13.0953052225593 .
Brief about Varroc Engineering

X