Varroc Engineering Ltd.

NSE: VARROC BSE: 541578 SECTOR: Auto Ancillary

298.95
-10.3 (-3.33%)
NSE: 20 Sep 04:12 PM

Price Summary

Today's High

₹ 307.95

Today's Low

₹ 298

52 Week High

₹ 477.65

52 Week Low

₹ 260

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

4567.55 Cr.

Enterprise Value

4828.08 Cr.

No. of Shares

15.28 Cr.

P/E

46.4

P/B

2.38

Face Value

₹ 1

Div. Yield

0%

Book Value (TTM)

₹  125.8

CASH

247.39 Cr.

DEBT

507.92 Cr.

Promoter Holding

75%

EPS (TTM)

₹  6.44

Sales Growth

2.55%

ROE

6.03 %

ROCE

9.5 %

Profit Growth

-11.27 %

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

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Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.
* 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.

 Group Companies

Ratios

Sales Growth

1 Year2.55%
3 Year7.77%
5 Year10.44%

Profit Growth

1 Year-11.27%
3 Year9.69%
5 Year-8.37%

ROE%

1 Year6.03%
3 Year8.79%
5 Year7.74%

ROCE %

1 Year9.5%
3 Year11.52%
5 Year10.27%

Debt/Equity

0.265

Price to Cash Flow

28.62

Interest Cover Ratio

3.44432364997327

CFO/PAT (5 Yr. Avg.)

2.72434043668286

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Jun 2021 75 0
Mar 2021 75 0
Dec 2020 85 0
Sep 2020 85 0
Jun 2020 85 0
* Figures given above are % of equity capital

 Strengths

  • The company has an efficient Cash Conversion Cycle of 10.2027612173692 days.
  • The company has a good cash flow management; CFO/PAT stands at 2.72434043668286.
  • The company has a high promoter holding of 75%.
  • The company has a strong degree of Operating leverage, Average Operating leverage stands at 4.33881551775902.

 Limitations

  • The company has shown a poor profit growth of 9.69073576414274% for the Past 3 years.
  • The company has shown a poor revenue growth of 7.76610532198656% for the Past 3 years.
  • Company has contingent liabilities of 1154.364 Cr.
  • The company is trading at a high PE of 46.4.

Quarterly Result (All Figures in Cr.)

PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Net Sales 251.05 646.44 790.96 823.5 666.02
Total Expenditure 252.5 566.74 704.87 758.55 616.69
Operating Profit -1.45 79.7 86.09 64.95 49.33
Other Income 45.18 11.58 15.28 39.29 9.48
Interest 13.13 16.14 12.87 13.99 12.57
Depreciation 37.73 36.47 39.59 38.4 39.55
Exceptional Items 0 0 0 0 0
Profit Before Tax -7.14 38.67 48.9 51.85 6.69
Tax -2.6 13.98 13.41 18.73 1.56
Profit After Tax -4.54 24.69 35.5 33.12 5.13
Adjusted EPS (Rs) -0.34 1.83 2.63 2.17 0.34

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

PARTICULARS Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Net Sales 1676.01 2046.89 2573.15 2498.15 2561.78
Total Expenditure 1515.31 1828.74 2304.04 2255.3 2325.57
Operating Profit 160.7 218.15 269.11 242.85 236.21
Other Income 32.45 28.77 51.48 73.55 111.42
Interest 46.86 40.15 39.2 45.08 56.11
Depreciation 96.28 101.61 107.52 143.76 154.36
Exceptional Items 0 0 0 0 0
Profit Before Tax 50.01 105.16 173.87 127.56 137.15
Tax 8.01 35.33 54.33 23.69 44.99
Net Profit 42 69.83 119.54 103.87 92.16
Adjusted EPS (Rs.) 3.41 5.67 8.87 7.7 6.03

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Equity and Liabilities
Share Capital 14.33 13.48 13.48 13.48 15.28
Total Reserves 932.91 998.07 1115.28 1123.85 1901.68
Borrowings 301.47 220.46 156 277.95 377.28
Other N/C liabilities 6.47 36.66 52.09 85.17 123.24
Current liabilities 503.69 691.36 701.59 963.88 909.6
Total Liabilities 1758.87 1960.03 2038.44 2464.33 3327.08
Assets
Net Block 764.25 800.97 854.27 1021.97 996.12
Capital WIP 25.31 21.71 50.62 78.59 124.53
Intangible WIP 0.02 0.6 3 29.47 32.65
Investments 494.36 464.72 492.25 454.5 1035.93
Loans & Advances 8.09 19.22 24.74 21.06 26.49
Other N/C Assets 4.13 17.82 34.19 34.74 55.38
Current Assets 462.71 634.99 579.38 824 1055.98
Total Assets 1758.87 1960.03 2038.44 2464.33 3327.08
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Profit from operations 50.01 105.16 173.87 127.56 137.15
Adjustment 127.39 129.03 116.7 136.75 118.09
Changes in Assets & Liabilities -16.97 -54.28 88.89 115.52 -82.94
Tax Paid -9.07 -23.33 -37.67 -24.72 -12.74
Operating Cash Flow 151.36 156.57 341.79 355.11 159.57
Investing Cash Flow -80.91 -96.66 -216.84 -172.7 -662.15
Financing Cash Flow -76.51 -46.83 -124.67 -56.24 623.55
Net Cash Flow -6.05 13.09 0.28 126.17 120.97

Corporate Actions

Investors Details

PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Promoters 85 85 85 75 75
tarang jain 45.05 45.05 45.05 39.75 39.75
naresh chandra, family tr... 7.42 7.42 7.42 6.55 6.55
suman jain, family truste... 7.42 7.42 7.42 6.55 6.55
tarang jain, trustee of t... 25.11 25.11 25.11 22.16 22.16
PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
Public 6.82 6.69 6.62 5.14 5.78
llp 0 0 0 0 0.17
PARTICULARS Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
FII/DII 8.18 8.31 8.38 19.86 19.22
t. rowe price internation... 0 0 0 0 0
l&t mutual fund trustee l... 1.13 1.13 1.04 0 0
dsp small cap fund 2.1 2.1 2.1 1.86 1.86
axis mutual fund trustee ... 0 0 0 0 0
icici prudential balanced... 0 0 0 0 0
reliance capital trustee ... 1.44 1.44 0 0 0
nippon life india trustee... 0 0 1.63 0 0
bajaj allianz life insura... 0 0 0 1.01 0
hdfc trustee company limi... 0 0 0 4.41 0
kotak funds - india midca... 0 0 0 1.52 1.59
nippon life india trustee... 0 0 0 5.74 6.11
hdfc trustee company limi... 0 0 0 0 4.54

Ratings & Research Reports

Company Presentations

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

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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 2.54700478353982 % and in the latest quarter sales was Rs 666.019 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 8.93430313269196 times for Varroc Engineering . It is managing its inventory poorly .
     
  • The company reported Profit loss of -11.2700735548966 % over the year, where the latest year profit is Rs 92.162 Cr compared to the previous year of Rs 103.868 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 49.327 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
     
  • Varroc Engineering has a poor ROE of 6.03492532465832 %. 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 0.265.
     
  • Varroc Engineering pays a dividend of 0 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0 %.
     
  • The share of promoter in the company is high at 75 %, 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 46.3991929225516 compared to the 5 year average PE of 28.5475061047041 .
Brief about Varroc Engineering

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