ScoreWhy is Varroc Engineering Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.14 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.14 times
2
Healthy long term growth as Operating profit has grown by an annual rate 24.29%
3
The company has declared Positive results for the last 3 consecutive quarters
- ROCE(HY) Highest at 19.06%
- DEBT-EQUITY RATIO(HY) Lowest at 0.54 times
- OPERATING PROFIT TO INTEREST(Q) Highest at 6.74 times
4
With ROCE of 21.2, it has a Fair valuation with a 4.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.82%, its profits have risen by 39.5% ; the PEG ratio of the company is 0.8
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.96% over the previous quarter and collectively hold 15.8% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Varroc Engineer should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Varroc Engineer for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Varroc Engineer
27.82%
0.79
35.42%
Sensex
-3.59%
-0.27
13.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-3.73%
EBIT Growth (5y)
24.29%
EBIT to Interest (avg)
0.89
Debt to EBITDA (avg)
4.96
Net Debt to Equity (avg)
0.34
Sales to Capital Employed (avg)
2.67
Tax Ratio
34.85%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.80%
ROCE (avg)
5.80%
ROE (avg)
12.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
37
Price to Book Value
5.17
EV to EBIT
18.53
EV to EBITDA
11.21
EV to Capital Employed
4.12
EV to Sales
1.08
PEG Ratio
0.84
Dividend Yield
0.18%
ROCE (Latest)
21.23%
ROE (Latest)
12.58%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
ROCE(HY)
Highest at 19.06%
DEBT-EQUITY RATIO(HY)
Lowest at 0.54 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.74 times
PAT(Q)
Highest at Rs 94.58 cr.
NET SALES(Q)
Highest at Rs 2,287.52 cr
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 11.62 times
Loading Valuation Snapshot...
Here's what is working for Varroc Engineer
Operating Profit to Interest - Quarterly
Highest at 6.74 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
Highest at Rs 94.58 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 94.58 cr has Grown at 78.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 52.96 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.54 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 2,287.52 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Varroc Engineer
Debtors Turnover Ratio- Half Yearly
Lowest at 11.62 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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