Varroc Engineering Limited (VARROC) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Varroc Engineering Limited ₹259, price ₹831, upside -68.8%, quality 55 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range ₹240.96 – ₹884.40 · fair‑value band ₹151.89 – ₹368.32 · the ₹830.60 price screens above the ₹259.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Varroc Engineering Limited provides aftermarket automotive components and solutions worldwide.
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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 off-highway vehicles original equipment manufacturers. Varroc Engineering Limited was incorporated in 1988 and is based in Aurangabad, India.
Stock analysis
Varroc Engineering Limited (VARROC) currently trades at ₹830.60, while our model-based Fair Value estimate is ₹259.31, 68.8% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹324.03 per share, and 0 of the 25 models we run sit above the ₹830.60 price.
Bear case: the Asset-Based group reads lowest at ₹78.07, and 25 of the 25 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹151.89 (bear) to ₹368.32 (bull), the price of ₹830.60 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Consumer Cyclical sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
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.
Key figures
Market cap ₹127B (≈ $1.3B) · P/E ratio 64.4 · P/S ratio 1.63 · EPS (TTM) ₹12.90 · Dividend yield 0.2% · Net margin 2.5% · Return on equity 13.5% · Return on assets (EBIT) 26.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 78% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −27% fair-value upside, at −69%, VARROC screens richer than that median.
Fair Value models
Bear ₹151.89Fair Value ₹259.31Bull ₹368.32
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹5.81 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+9.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.2%
Start year 2021 (pandemic). Over 10 years: +1.2% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.9%
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What shareholders gained per year (last 3 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 3 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−24.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−24.6%
Dividend (yield on the price)0.2%
⚠ Revenue per share shrinking 2.7%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
more than +80 %
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+14.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +10.1% a year for the forecasts.
Compare Varroc Engineering Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Auto Parts · 661 stocks
Beats the industry median on 4/14 measures
Overall it trails its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside−68.8% · Bottom 25%
Profitability
Return on equity (TTM)13.5% · Top 25%
Return on assets6.6% · Top 25%
Net margin (TTM)2.1% · Below median
Operating margin (TTM)5.3% · Below median
Growth and dividend
Revenue growth29.9% · Top 25%
Dividend yield (TTM)0.2% · Bottom 25%
Balance sheet
Debt / equity0.12× · Above median
Valuation Multiplesvs Auto Parts median · lower = cheaper
P/E (TTM)64.4× · Priciest 25%
P/B7.13× · Priciest 25%
P/S (TTM)1.34× · Pricier than median
P/FCF379.6× · Priciest 25%
EV/EBITDA15.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 26
FUTURE (revenue growth)100· sector 29
PAST (return on equity)54· sector 30
HEALTH (low debt)94· sector 95
DIVIDEND (yield)4· sector 38
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Varroc Engineering Limited (VARROC) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of ₹259.31 versus a price of ₹830.60, about −69% upside (overvalued).
What is the fair value of VARROC?
Our model-based fair value for Varroc Engineering Limited is ₹259.31 (as of Oct 1, 2026), built from audited fundamentals. The current price: ₹830.60.
What is the quality score of VARROC?
Varroc Engineering Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Varroc Engineering Limited (VARROC)?
Our model-based price target is the fair value of ₹259.31 (as of Oct 1, 2026) from 25 valuation models. Cautious scenario ₹151.89, optimistic scenario ₹368.32. It is a calculation from audited fundamentals, not an analyst target.
What is the Varroc Engineering Limited stock forecast for 2026?
Our models put fair value at ₹259.31, about −69% upside versus a price of ₹830.60 (overvalued). Cautious scenario ₹151.89, optimistic scenario ₹368.32. The calculation is refreshed regularly with new filings.
What is the revenue of Varroc Engineering Limited (VARROC)?
Varroc Engineering Limited reported trailing-twelve-month revenue of about ₹95.0B (latest available figure, as of Oct 1, 2026).
Does Varroc Engineering Limited pay a dividend?
Varroc Engineering Limited currently shows a dividend yield of about 0.18% relative to its recent price (as of Oct 1, 2026).
What growth is priced into Varroc Engineering Limited (VARROC)?
For today's price to be fair in a discounted-cash-flow model, Varroc Engineering Limited would have to grow free cash flow by more than 80 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.2 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of VARROC use?
Our models discount Varroc Engineering Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.32, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Varroc Engineering Limited that is more than 80 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Varroc Engineering Limited (VARROC) delivered so far?
Over the past 5 years revenue at Varroc Engineering Limited grew +15.2 % a year. The price currently implies more than 80 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Varroc Engineering Limited (VARROC) growing?
The median revenue growth in the sector is +3.9 % a year. That is the yardstick for the growth priced into Varroc Engineering Limited (more than 80 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Varroc Engineering Limited (VARROC)?
The free-cash-flow yield on the price is 0.26 %: that much free cash flow Varroc Engineering Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Varroc Engineering Limited (VARROC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Varroc Engineering Limited it is ₹259.31 per share (as of Oct 1, 2026), against a price of ₹830.60. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Varroc Engineering Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, VARROC trades above its calculated fair value: price ₹830.60, fair value ₹259.31, a gap of about −69% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of VARROC?
No. The price is what the market pays today (₹830.60); the fair value is what the company's own numbers justify (₹259.31). For Varroc Engineering Limited the two are ₹571.29 per share apart. That gap is exactly why we show both numbers side by side.
How much is Varroc Engineering Limited worth?
The market values Varroc Engineering Limited at about ₹127B (market capitalisation, as of Oct 1, 2026). Per share that is ₹830.60; our models calculate a fair value of ₹259.31 per share.
What do the bullish and bearish scenarios say about VARROC?
Our models span a range for Varroc Engineering Limited: cautious scenario ₹151.89, base ₹259.31, optimistic ₹368.32 per share (as of Oct 1, 2026, price ₹830.60). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of VARROC?
Varroc Engineering Limited trades at a price-to-earnings ratio of 64.4 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹259.31 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 49.9 (reported for FY2026: 56.4). Other multiples: P/B 7.1, P/S 1.3, EV/EBITDA 15.7.
How solid is the balance sheet of Varroc Engineering Limited (VARROC)?
Balance-sheet figures for Varroc Engineering Limited (as of Oct 1, 2026): return on equity 13.5%, debt of 0.12 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is VARROC from its 52-week high?
Varroc Engineering Limited trades at ₹830.60, about 6% below its 52-week high of ₹884.40 and 78% above the low of ₹467.40 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹259.31 is for.
Which stocks are comparable to Varroc Engineering Limited?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Varroc Engineering Limited stock attractive at the current price?
The data as of Oct 1, 2026: price ₹830.60, calculated fair value ₹259.31 (−69%), Quality Score 55/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of VARROC calculated?
We run Varroc Engineering Limited through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹259.31, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Varroc Engineering Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Varroc Engineering Limited (VARROC)?
The closing price on Oct 1, 2026 was ₹830.60. Our model-based fair value is ₹259.31, about −69% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Varroc Engineering Limited right now?
The price sits above even our optimistic bull case (₹368.32). The favourable scenario is already priced in. Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹151.89 to ₹368.32) leaves room in how you read the outcome.
Where does the earnings growth of Varroc Engineering Limited (VARROC) come from?
Earnings per share at Varroc Engineering Limited grew −2.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share −3.6 %, EBIT margin −2.0 %, tax rate +1.8 %, residual (interest, one-offs) +1.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Varroc Engineering Limited
How large is the market capitalisation of Varroc Engineering Limited (VARROC)?
The market capitalisation of Varroc Engineering Limited is ₹127B (≈ $1.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Varroc Engineering Limited (VARROC)?
The price-to-sales ratio of Varroc Engineering Limited is 1.63 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Varroc Engineering Limited (VARROC)?
Earnings per share at Varroc Engineering Limited are ₹12.90 (price ÷ EPS = P/E 64.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Varroc Engineering Limited (VARROC)?
The dividend yield of Varroc Engineering Limited is 0.2% (payout 10.3%, on adjusted earnings, reported 11.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Varroc Engineering Limited (VARROC)?
The net margin of Varroc Engineering Limited is 2.5% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Varroc Engineering Limited (VARROC)?
The return on equity (ROE) of Varroc Engineering Limited is 13.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Varroc Engineering Limited (VARROC)?
On an EBIT basis the return on assets of Varroc Engineering Limited is 26.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Varroc Engineering Limited (VARROC)?
The operating margin of Varroc Engineering Limited is 5.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Varroc Engineering Limited (VARROC)?
Revenue at Varroc Engineering Limited is growing +29.9% versus a year earlier (3y avg +8.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Varroc Engineering Limited (VARROC)?
Earnings per share at Varroc Engineering Limited are growing −26.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Varroc Engineering Limited (VARROC) carry?
The net debt of Varroc Engineering Limited is ₹7.4B (fiscal year 2026, ≈ 22.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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