ScoreWhy is Varroc Engineering Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.11 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.11 times
2
Healthy long term growth as Operating profit has grown by an annual rate 24.57%
3
The company has declared Positive results for the last 4 consecutive quarters
- PAT(Latest six months) At Rs 163.90 cr has Grown at 79.10%
- ROCE(HY) Highest at 19.20%
- DEBT-EQUITY RATIO(HY) Lowest at 0.52 times
4
With ROCE of 20.2, it has a Fair valuation with a 3.9 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 8.08%, its profits have risen by 58.3% ; the PEG ratio of the company is 0.5
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
8.08%
0.23
35.47%
Sensex
-5.98%
-0.45
13.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-4.69%
EBIT Growth (5y)
24.57%
EBIT to Interest (avg)
1.21
Debt to EBITDA (avg)
4.14
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
2.83
Tax Ratio
32.69%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.80%
ROCE (avg)
8.66%
ROE (avg)
12.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
36
Price to Book Value
4.98
EV to EBIT
19.17
EV to EBITDA
11.51
EV to Capital Employed
3.88
EV to Sales
1.07
PEG Ratio
0.54
Dividend Yield
0.17%
ROCE (Latest)
20.23%
ROE (Latest)
15.97%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
PAT(Latest six months)
At Rs 163.90 cr has Grown at 79.10%
ROCE(HY)
Highest at 19.20%
DEBT-EQUITY RATIO(HY)
Lowest at 0.52 times
NET SALES(Q)
Highest at Rs 2,368.08 cr
PBDIT(Q)
Highest at Rs 222.35 cr.
PBT LESS OI(Q)
Highest at Rs 103.24 cr.
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Varroc Engineer
Profit After Tax (PAT) - Latest six months
At Rs 163.90 cr has Grown at 79.10%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.52 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 2,368.08 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 222.35 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 103.24 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Varroc Engineer
Non Operating Income - Quarterly
Highest at Rs 5.53 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
