Varroc Engineering Ltd Stock Analysis

BSE: 541578 | NSE: VARROC | Auto Ancillary | Small Cap

BSE Share Price 02-Dec-2022 18:01
293.25 -2.55 (-0.86%)

DeciZen - Make an Informed Decision on Varroc Engineering

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Varroc Engineering Price Chart

P/E Ratio (CD) :
0.00
Market Cap :
4,480.5 Cr.
52-wk low :
279
52-wk high :
494.6
Bole Toh?

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.

10 Year X-Ray of Varroc Engineering:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Varroc Engineering Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
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

Sales 4,2106,1166,7707,9099,29910,27912,03611,12211,3035,8448,243
YoY Gr. Rt. %-45.3%10.7%16.8%17.6%10.5%17.1%-7.6%1.6%-48.3%-
Adj EPS -2.75.3-9.134.723.73832-2.3-42-4.9-93.6
YoY Gr. Rt. %-NA-272.1%NA-31.7%60.3%-15.9%-107.2%NANA-
BVPS (₹) 67.9101.8112.6181.6190.5229.6227.5222.9198.2130.257.1
Adj Net Profit -28.355.5-87.7334272468431-31-642-74.9-1,431
Cash Flow from Ops. 3484601282906771,0754741,414474636-
Debt/CF from Ops. 3.62.412.95.52.21.15.22.56.32.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.7%-8.9%-21.4%-48.3%
Adj EPS NA-173%-153.5%NA
BVPS 7.5-7.3-17-34.3
Share Price - - -12.1% -0.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % -46.2-8.123.513.818.714.6-1-21.3-3-100
Op. Profit Mgn % 66.99.17.26.38.88.97.43.66.35.3
Net Profit Mgn % -0.70.9-1.24.22.13.93.4-0.2-6-1.2-17.4
Debt to Equity 1.711.50.90.70.40.81.210.80.6
Working Cap Days 0991029992959711111516394
Cash Conv. Cycle 01922241563-3-4-80

Recent Performance Summary

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%

Latest Financials - Varroc Engineering Ltd.

Standalone Consolidated
TTM EPS (₹) -89.2 -93.6
TTM Sales (₹ Cr.) 3,746 8,243
BVPS (₹.) 38.1 57.1
Reserves (₹ Cr.) 566 858
P/BV 7.70 5.12
PE 0.00 0.00
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

Management X-Ray of Varroc Engineering :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Varroc Engineering

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Varroc Engineering Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Varroc Engineering on 02-Dec-2022 18:01 is : 293.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 02-Dec-2022 18:01 the market cap of Varroc Engineering stood at ₹ 4,480.5.
The latest PE ratio of Varroc Engineering as of 02-Dec-2022 18:01 is 0.00.
The latest PB ratio of Varroc Engineering as of 02-Dec-2022 18:01 is 7.70
The 52-week high of Varroc Engineering is ₹ 494.6 and the 52-week low is ₹ 279.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Varroc Engineering is ₹ 3,746 ( Cr.) .

About Varroc Engineering Ltd

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.

Awards

  • 2014: Received the ‘New Part Development Award’ by Honda Motorcycle and Scooter India Private Limited
  • 2014: Named as one of the ‘Top 100 Companies’ in Czech Republic
  • 2014: Named as one of the ‘Top 100 Companies’ in Czech Republic
  • 2015: Won the ‘PSA Best Plant Award’
  • 2016: Awarded the ‘Emerging Manufacturing Giant’ by the honourable Chief Minister of Maharashtra, India, Mr. Devendra Fadnavis, on behalf of Indian Merchant Chambers
  • 2016: Given the ‘Supplier Quality Excellence Award’ by General Motors
  • 2016: Awarded ‘Emerging Manufacturing Giant’ by the chief minister of Maharashtra, India, Mr. Devendra Fadnavis, on behalf of Indian Merchant Chambers
  • 2017: National Safety Council awarded it for ‘Lowest average frequency accident rate and zero accident frequency rate’
  • 2017: Jaguar Land Rover bestowed it with the ‘Global Supplier of the Year Award’
  • 2017: Received the ‘FCA Innovation Award’ for Dodge Challenge Head Lamp 193
  • 2017: Won the ‘2016 General Motors Quality Excellence award
  • 2017: Claimed the ‘Ford Q1 Award’- Only 2nd lighting supplier in China to receive this award
  • 2017: Awarded for ‘Overall Performance Of The Year’ by Maruti Suzuki
  • 2017: Presented with an award for ‘Electrical and Electronics Excellence in Automotive Lighting’ by the International Centre For Automotive Technology
  • 2017: Bagged the ‘Electronics Co. Of The Year’ award by ELCINA
  • 2018: Handed the ‘Best Quality Award’ by FCA
  • 2018: Mr. Tarang Jain, Managing Director, has been inducted into the ‘Automotive Hall of Fame’ at the ET Polymers Global Conference on Plastics in Automotive
  • 2019: Varroc Polymer plant team bagged 2 OHS-India Safety Awards for Innovation and Excellence
  • 2019: Varroc’s Paper on ‘ELECTRICAL MOBIITY’ has been awarded the ‘BEST PAPER’ at the SIAT 2019
  • 2019: Varroc’s Polymer division bagged the ‘Award for Delivery Management 2018-19’ at the Annual Supplier Conference of Honda Two-wheelers Ltd.
  • 2019: Varroc’s polymer division recognized by Volvo Eicher Commercial Vehicles (VECV) with Outstanding Contribution in New Product Development award
  • 2019: Performance Award for ‘Incoming Quality Improvement’ at Suzuki Motorcycles India Pvt. Ltd.’s 2019 Suppliers’ Meet.
  • 2019: Varroc Polymer Business recognized for ‘Excellence in Delivery’ by Mahle Behr India Pvt Ltd., during their Supplier Meet 2019

Milestones

  • 1990: Began journey through Polymer business
  • 1996: Emergence of Electrical-Electronics business unit
  • 1997: Engine Valves manufacturing
  • 2000: Established as 'Supplier of Choice' for Bajaj Electronics Pvt. Ltd.
  • 2004: Emergence of Metallic Forgings business unit
  • 2005: Formed Varroc Exhaust System Pvt. Ltd. for two-wheeler & three-wheeler catalytic converters
  • 2007: Acquired first overseas company - IMES (Italy), a forging business
  • 2011: Acquired TRIOM (Italy), a hi-end lighting systems player for global two-wheelers
  • 2012: Acquired Visteon's Global PV Lighting Business
  • 2014: Received Investment by Omega TC Holdings Pte. Ltd. and Tata Capital Financial Services Limited
  • 2014: Acquired 50% stake in Varroc TYC Corporation BVI (China)
  • 2015: Signed a letter of intent with Heraeus, Germany based technology group, for catalytic converters for two-wheelers in India
  • 2015: Acquired Sa-Ba, an exterior automotive lighting company in Turkey
  • 2015: Developed Electronic Fuel-injection Technology for two-wheelers and three-wheelers in India
  • 2015: Varroc Engineering Ltd. got listed on BSE and NSE
  • 2015: Announced intention to set up two new manufacturing facilities in Chennai, India and Poland to further expand globally
  • 2019: Acquisition of 74% stake in CarIQ, a leading telematics solutions provider (August 2019)
  • 2019: Morocco and Brazil facilities started in February/March 2019.
  • 2020: Varroc Engineering’s wholly-owned subsidiary -- VarrocCorp Holding B.V., the Netherlands (VCHBV) has acquired balance 30% stake i.e. 60,000 equity shares of Varroc-Elba Electronics S.R.L (Varroc Elba) held by the other JV Partner, ELBA SA, Romania for an aggregate consideration of Euro 1.05M.
  • 2020: Varroc Engineering’s overseas Wholly Owned Subsidiary (WOS) -- Aries Mentor Holding B.V. (AMHBV) situated in Netherlands has merged with VarrocCorp Holding B.V. (VCHBV), WOS of the company with effect from March 4, 2020.
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