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Varroc Engineering Limited (VARROC) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹100B

VE Varroc Engineering Limited VARROC · NSE
Price₹667.55
Fair Value₹283.44
Upside-57.5%
Quality62/100
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Evidence: High Range ₹154.86 – ₹405.03

Fair value as of: Jul 3, 2026

From 24 valuation models · updated today

Share price +12.5% over the past month.

Price vs Fair Value (12 months)

₹669.95 ₹467.40 Fair Value ₹283.44 Jul 2025 Jul 2026

12‑month range ₹467.40 – ₹669.95 · fair‑value band ₹154.86 – ₹405.03 · the ₹667.55 price screens above the ₹283.44 fair value. As of Jul 3, 2026.

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Analysis

Varroc Engineering Limited (VARROC) currently trades at ₹667.55, while our model-based Fair Value estimate is ₹283.44 — implying the stock looks roughly 57.5% overvalued today. We read business quality at 62/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Varroc Engineering Limited generated revenue of ₹88.9B at a net margin of 2.5%. Revenue grew 12.8% year over year. It earns a return on equity of 13.5%. Net debt stands at ₹7.4B. Fundamentals as of Jul 3, 2026

Key figures & financial health

Revenue (TTM) ₹88.9B
Revenue growth (YoY) +12.8%
Net margin 2.5%
Return on equity 13.5%
Free cash flow ₹334M FY2026
P/E ratio 44.7
More key figures
Operating margin 6.1%
EPS (TTM) ₹14.70
Dividend yield 0.2%
EPS growth (YoY) +236%
Net debt ₹7.4B FY2026

Figures from reported company fundamentals (EODHD) · as of Jul 3, 2026. TTM = trailing twelve months.

About the company

Varroc Engineering Limited provides aftermarket automotive components and solutions worldwide. It offers e-mobility solutions, such as traction motors, controllers, and DC-DC converters; ice powertrain solutions, including valves, transmission components, crankpins and balancers, and wiper motors; light engines, light control units, and exterior and interior lighting products; and human-machine interface solutions, which include digital instrument clusters, sensors, and ergonomic handlebar switches. The company also provides polymer components, metallic forging and casting products, engine parts, and consumables and accessories; and intelligent cockpits and ADAS solutions, such as driver and cabin monitoring systems, surround view systems, and infotainment systems. In addition, it operates connected vehicle platform that integrates cloud providers, as well as supports device-agnostic connectivity. The company serves passenger cars, commercial vehicles, two and three wheelers, and …

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Varroc Engineering Limited reported revenue of ₹88.9B in FY2026 versus ₹58.4B in FY2022, a compound +11.1%/yr. Reported net income was ₹2.3B in FY2026.

Revenue +11.1%/yr
FY22 ₹58.4B
FY23 ₹68.9B
FY24 ₹75.5B
FY25 ₹81.5B
FY26 ₹88.9B
Net income
FY22 −₹11.1B
FY23 −₹8.2B
FY24 ₹5.3B
FY25 ₹612M
FY26 ₹2.3B

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Frequently asked questions

Is Varroc Engineering Limited (VARROC) undervalued?
As of Jul 3, 2026, our model estimates a fair value of ₹283.44 versus a price of ₹667.55 — about −58% (overvalued). Model-based estimate, not financial advice.
What is the fair value of VARROC?
Our model-based fair value for Varroc Engineering Limited is ₹283.44 (as of Jul 3, 2026), built from audited fundamentals. The current price is ₹667.55.
What is the quality score of VARROC?
Varroc Engineering Limited has a Quality Score of 62/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Varroc Engineering Limited (VARROC)?
Varroc Engineering Limited reported trailing-twelve-month revenue of about ₹88.9B (latest available figure, as of Jul 3, 2026).
What is the net profit margin of VARROC?
The net profit margin of Varroc Engineering Limited is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.
Does Varroc Engineering Limited pay a dividend?
Varroc Engineering Limited currently shows a dividend yield of about 0.23% relative to its recent price (as of Jul 3, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.