Varroc Engineering Limited (VARROC) Fair Value & Analysis
Consumer Cyclical · IN · Market cap ₹128B (≈ $1.4B) · ISIN INE665L01035
What is Varroc Engineering Limited really worth?
A solid business, but trading 249% above our fair value of ₹236.58.
As of Sep 5, 2026, the fair value of Varroc Engineering Limited is ₹236.58 per share against a price of ₹825.70, so the fair value sits 71% below the price. A model estimate blended from multiple valuation models, recalculated regularly.
Strengths
Risks
Fair value as of: Sep 5, 2026
From 24 valuation models · updated yesterday
Share price +15.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (₹338.85). The favourable scenario is already priced in.
- Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range (₹138.00 to ₹338.85) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.
How to read this chart
60‑month range ₹240.57 – ₹874.95 · fair‑value band ₹138.00 – ₹338.85 · the ₹825.70 price screens above the ₹236.58 fair value. Dashed = 300-day average. As of Sep 5, 2026.
Analysis
Varroc Engineering Limited (VARROC) currently trades at ₹825.70, while our model-based Fair Value estimate is ₹236.58, implying the stock looks roughly 249.0% overvalued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of ₹324.03 per share, and 0 of the 24 models we run sit above the ₹825.70 price. Bear case: the Growth DCF group reads lowest at ₹62.22, and 24 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Varroc Engineering Limited generated revenue of ₹95.0B at a net margin of 2.1%. Revenue grew 29.9% year over year. It earns a return on equity of 13.5%. Net debt stands at ₹6.1B. Fundamentals as of Sep 5, 2026
Our scenario range runs from ₹138.00 (bear case) to ₹338.85 (bull case); at ₹825.70, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 8% below its 52-week high and 79% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −38% fair-value upside, at −71%, VARROC screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹5.64 per share, which is 2.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Multiples (₹324.03) versus Dividend Discount (₹13.42). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 56 · Market factors (momentum, volatility) 87
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, advanced safety systems, and precision metallic components worldwide. The company operates through Automotive and Others segments.
Full company description
Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, advanced safety systems, and precision metallic components worldwide. The company operates through Automotive and Others segments. It offers unpainted and painted body parts; exterior and interior systems; seating systems; mirror systems; air filters; automotive accessories; lighting systems; instrument clusters; catalytic converters; switches; motors and magnetos; electronics; traction motors and controllers; DC-DC converters; and battery management systems, as well as engine valves. The company also provides precision, forged, and machined parts for engine and transmissions to two-wheeler, three-wheeler, four-wheeler, commercial vehicle, off-highway, earthmoving, and oil drilling applications; and transmission gears and assemblies, crankpins, connecting rods, flanges, ring gears, crankshafts, camshafts, knuckles, front axle beams, hydraulic shafts, heavy undercarriage parts, and drill bits and cones, as well as head and signal lamps. It serves passenger car, commercial vehicle, two-wheeler, three-wheeler, and off-highway vehicle original equipment manufacturers. Varroc Engineering Limited was incorporated in 1988 and is based in Aurangabad, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Varroc Engineering Limited reported revenue of ₹87.2B in FY2026 versus ₹57.9B in FY2022, a compound +10.8%/yr. Reported net income was ₹2.3B in FY2026.
VARROC screens 249% overvalued. Compare with O'Reilly Automotive, Inc →
Peer Group
Auto Parts · 641 stocks
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.
Valuation Multiples vs Auto Parts median · lower = cheaper
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| O'Reilly Automotive, Inc ORLY | $88.50 | $47.50 | −46% |
| AutoZone, Inc AZO | $2,983 | $2,287 | −23% |
| Hyundai Mobis Co 012330 | 450,500 KRW | 643,909 KRW | +43% |
| Fuyao Glass Industry Group 600660 | ¥57.67 | ¥84.47 | +46% |
| Samvardhana Motherson International Limited MOTHERSON | ₹165.30 | ₹80.63 | −51% |
| Magna International Inc MGA | $65.57 | $68.17 | +4% |
| Genuine Parts Company GPC | $137.51 | $58.07 | −58% |
| Bosch Limited BOSCHLTD | ₹48,700 | ₹11,534 | −76% |
| Ningbo Tuopu Group 601689 | ¥45.82 | ¥28.28 | −38% |
| Bharat Forge Limited BHARATFORG | ₹2,063 | ₹393.20 | −81% |
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