Varroc Engineering Limited (VARROC.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+95.1%

₹1,549.20

vs ₹794.10 price

Levered DCF

₹418.09

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

—

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	31.73×	106.76×	14.31×	105.66×	-64.87×	65.27×	8,989.44×	18.76×
P/B	4.01×	4.18×	5.23×	3.9×	2.66×	1.63×	0.57×	2.6×
P/S	0.8×	0.8×	1.04×	0.55×	0.9×	1.13×	0.15×	0.66×
EV / EBITDA	9.83×	9.72×	12×	8.91×	6.36×	7.91×	5.78×	9.21×
Gross margin	21.3%	34.7%	36.0%	34.4%	32.9%	35.0%	37.2%	36.0%
Operating margin	5.7%	23.0%	24.3%	23.1%	16.9%	16.9%	20.7%	21.1%
Net margin	2.5%	0.8%	7.0%	-11.9%	-19.0%	-14.4%	0.0%	3.5%
Current ratio	0.88×	0.91×	0.79×	0.62×	0.98×	0.7×	0.69×	0.7×
Debt / equity	0.52×	0.71×	0.93×	1.85×	0.82×	1.22×	1.42×	0.8×
Interest coverage	3.76×	11.01×	9.46×	8.37×	8.33×	8.31×	16.53×	26.36×
Dividend yield	0.2%	0.0%	0.1%	0.0%	0.1%	0.0%	6.7%	0.0%
Payout ratio	6.8%	0.0%	0.9%	0.0%	-0.5%	0.0%	60279.6%	0.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.6%	3.9%	35.1%	-84.0%	-55.8%	-20.9%	0.0%	13.9%
Return on invested capital	12.1%	27.9%	61.3%	25.0%	25.7%	6.4%	1.9%	35.4%
Return on assets	4.6%	1.3%	11.5%	-17.7%	-10.1%	-5.6%	0.0%	4.9%
Free cash flow yield	0.5%	6.8%	4.7%	2.3%	-4.1%	-6.1%	1.5%	-12.1%
Earnings yield	3.2%	0.9%	6.7%	-21.5%	-21.0%	-12.8%	0.0%	5.3%
Enterprise value	₹79.4B	₹75.5B	₹91.1B	₹53.1B	₹67.9B	₹78.8B	₹49.1B	₹102.5B
Net debt / EBITDA	0.99×	1.3×	1.69×	2.52×	1.41×	2.96×	3.75×	2.05×
Cash conversion cycle (days)	-1	-15	-16	-8	2	-67	-15	1