1. Is Varroc Engineering Ltd a good quality company?
Past 10 year’s financial track record analysis by Moneyworks4me indicates that Varroc Engineering Ltd is a below average quality company.
2. Is Varroc Engineering Ltd undervalued or overvalued?
The key valuation ratios of Varroc Engineering Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
3. Is Varroc Engineering Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Varroc Engineering Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||1.5%||6%||9.9%||12.8%||9.4%||13.6%||10.4%||1.1%||-8.4%||0.2%||-|
|Value Creation Index ⓘ||-0.9||-0.6||-0.3||-0.1||-0.3||-0.0||-0.2||-0.9||-1.6||-1.0||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||45.3%||10.7%||16.8%||17.6%||10.5%||17.1%||-7.6%||1.6%||-48.3%||-|
|Adj EPS ⓘ||-2.7||5.3||-9.1||34.7||23.7||38||32||-2.3||-42||-4.9||-93.6|
|YoY Gr. Rt. %||-||NA||-272.1%||NA||-31.7%||60.3%||-15.9%||-107.2%||NA||NA||-|
|BVPS (₹) ⓘ||67.9||101.8||112.6||181.6||190.5||229.6||227.5||222.9||198.2||130.2||57.1|
|Adj Net Profit ⓘ||-28.3||55.5||-87.7||334||272||468||431||-31||-642||-74.9||-1,431|
|Cash Flow from Ops. ⓘ||348||460||128||290||677||1,075||474||1,414||474||636||-|
|Debt/CF from Ops. ⓘ||3.6||2.4||12.9||5.5||2.2||1.1||5.2||2.5||6.3||2.4||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||NA||-173%||-153.5%||NA|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||-4||6.2||-8.1||23.5||13.8||18.7||14.6||-1||-21.3||-3||-100|
|Op. Profit Mgn % ⓘ||6||6.9||9.1||7.2||6.3||8.8||8.9||7.4||3.6||6.3||5.3|
|Net Profit Mgn % ⓘ||-0.7||0.9||-1.2||4.2||2.1||3.9||3.4||-0.2||-6||-1.2||-17.4|
|Debt to Equity ⓘ||1.7||1||1.5||0.9||0.7||0.4||0.8||1.2||1||0.8||0.6|
|Working Cap Days ⓘ||0||99||102||99||92||95||97||111||115||163||94|
|Cash Conv. Cycle ⓘ||0||19||22||24||15||6||3||-3||-4||-8||0|
Debt to equity has declined versus last 3 years average to 0.78
Sales growth is good in last 4 quarters at 14.25%
Return on Equity is Poor
Sales growth has been subdued in last 3 years -21.40%
|TTM EPS (₹)||-89.2||-93.6|
|TTM Sales (₹ Cr.)||3,746||8,243|
|BVPS (₹.) ⓘ||38.1||57.1|
|Reserves (₹ Cr.) ⓘ||566||858|
|From the Market|
|52 Week Low / High (₹)||279.00 / 494.60|
|All Time Low / High (₹)||119.20 / 1177.45|
|Market Cap (₹ Cr.)||4,480|
|Equity (₹ Cr.)||15.3|
|Face Value (₹)||1|
|Industry PE ⓘ||36.6|
Varroc Engineering Ltd. is a global tier-1 automotive component group. It commenced operations in India with its Polymer business in 1990. it design, manufacture and supply exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle (OHV) OEMs directly worldwide. It is the second largest Indian auto component group (by consolidated revenue for FY 2017) and a leading tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs (by consolidated revenue for FY 2017). It offers the best design solutions that provides its customers a competitive edge in their markets. This has helped Varroc place itself as the most preferred partner with all leading OEMs in the automotive segment across the world.
Business area of the company
The Company is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components. It also supplies precision metallic components to passenger car, commercial vehicle, two-heeler, three-wheeler and off highway vehicle (OHV). The Company's segments include Polymer, Electrical, Engine valve, Forged components, and Lighting.