Varroc Engineering Ltd.

NSE: VARROC  SECTOR: Auto Ancillary

385.85
+19.8 (5.41%)

Price Summary

Today's High

₹ 388.6

Today's Low

₹ 369.95

52 Week High

₹ 525

52 Week Low

₹ 119.2

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationFair
The stock’s market price justifies its intrinsic value.
EfficiencyPoor
The company seems highly inefficient in case of asset management.
FinancialsVery Stable
The company possesses stable growth history and manageable debt.

Company Essentials

Market Cap

5201.70288505 Cr.

Enterprise Value

5600.72988505 Cr.

No. of Shares

13.481153 Cr.

P/E

105.78

P/B

4.68

Face Value

₹ 1

Div. Yield

0.78%

Book Value (TTM)

₹  82.4704

CASH

105.855 Cr.

DEBT

504.882 Cr.

Promoter Holding

85%

EPS (TTM)

₹  3.6475

Sales Growth

-10.4621062175471%

ROE

8.81395607574375 %

ROCE

10.389020105925 %

Profit Growth

4.27327707666715 %

* 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 Year-10.46%
3 Year11.19%
5 Year9.28%

Profit Growth (in Cr.)

1 Year-17.16%
3 Year33.09%
5 Year18.05%

ROE%

1 Year8.81%
3 Year9.04%
5 Year12.29%

ROCE %

1 Year10.39%
3 Year11.5%
5 Year11.07%

Debt/Equity

0.451478826953773

Price to Cash Flow

15.44

Interest Cover Ratio

3.85664055125543

CFO/PAT (5 Yr. Avg.)

2.48585083319412

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 profit growth of 33.0927271773107% for the Past 3 years.
  • The company has an efficient Cash Conversion Cycle of 15.0742828913522 days.
  • The company has a good cash flow management; CFO/PAT stands at 2.48585083319412.
  • The company has a high promoter holding of 85%.

 Limitations

  • The company has shown a poor revenue growth of 11.1898880423426% for the Past 3 years.
  • Company has contingent liabilities of 1528.343 Cr.

Quarterly Result (All Figures in Cr.)

PARTICULARS Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
Net Sales 587.23 570.62 520.05 213.12 646.44
Total Expenditure 528.08 502.51 481.64 221.14 566.74
Operating Profit 59.15 68.11 38.41 -8.03 79.7
Other Income 12.46 8.23 40.35 8.1 11.58
Interest 10.23 9.68 11.31 12.76 16.14
Depreciation 32.51 33.37 34.91 36.33 36.47
Exceptional Items 0 0 0 0 0
Profit Before Tax 28.88 33.28 32.54 -49.02 38.67
Tax 4.48 9.78 0.17 -17.63 13.98
Profit After Tax 24.41 23.5 32.37 -31.39 24.69
Adjusted EPS (Rs) 0.18 0.17 0.24 -0.23 0.18

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

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Net Sales 1558.92 1676.01 2046.89 2573.15 2303.95
Total Expenditure 1425.62 1515.31 1828.74 2304.04 2077.11
Operating Profit 133.3 160.7 218.15 269.11 226.84
Other Income 144 32.45 28.77 51.48 68.28
Interest 47.91 46.86 40.15 39.2 42.38
Depreciation 81.93 96.28 101.61 107.52 131.69
Exceptional Items 0 0 0 0 0
Profit Before Tax 147.46 50.01 105.16 173.87 121.05
Tax 4.77 8.01 35.33 54.33 22.03
Net Profit 142.68 42 69.83 119.54 99.03
Adjusted EPS (Rs.) 13.63 3.41 5.67 8.87 7.35

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Equity and Liabilities
Share Capital 27.09 14.33 13.48 13.48 13.48
Total Reserves 672.88 932.91 998.07 1115.28 1104.8
Borrowings 418.99 301.47 220.46 156 277.95
Other N/C liabilities 14.36 6.47 36.66 52.09 75.58
Current liabilities 613.65 503.69 691.36 701.59 747.22
Total Liabilities 1746.97 1758.87 1960.03 2038.44 2219.03
Assets
Net Block 721 764.25 772.33 854.27 996.33
Capital WIP 44.4 25.31 21.71 50.62 63.52
Investments 495.48 494.36 493.36 492.25 499
Loans & Advances 24.76 8.09 19.22 24.74 12.47
Other N/C Assets 4.6 4.15 18.42 37.19 34.36
Current Assets 456.74 462.71 634.99 579.38 613.35
Total Assets 1746.97 1758.87 1960.03 2038.44 2219.03
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Profit Before Tax 147.46 50.01 105.16 173.87 121.05
Adjustment -7.29 127.39 129.03 116.7 122.44
Working Capital Changes -91.61 -16.97 -54.28 88.89 112.43
Tax Paid -2.51 -9.07 -23.33 -37.67 -19.05
Operating Cash Flow 46.04 151.36 156.57 341.79 336.87
Investing Cash Flow -85.37 -80.91 -96.66 -216.84 -192.65
Financing Cash Flow 33.41 -76.51 -46.83 -124.67 -42.06
Net Cash Flow -5.92 -6.05 13.09 0.28 102.15

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 poor sales growth of -10.4621062175471 % and in the latest quarter sales was Rs 646.441 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 10.1086171811442 times for Varroc Engineering . It is managing its inventory poorly .
     
  • The company reported Profit loss of -17.1599464614355 % over the year, where the latest year profit is Rs 99.027 Cr compared to the previous year of Rs 119.54 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 91.279 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
     
  • Varroc Engineering has a poor ROE of 8.81395607574375 %. 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 0.451478826953773.
     
  • Varroc Engineering pays a dividend of 3 Rs per share. It tells us that a company dislikes to share profits with its shareholders. The dividend yield is low at 0.7813 %.
     
  • 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 105.784784098698 compared to the 5 year average PE of 16.6211989028046 .
Brief about Varroc Engineering

X