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Varroc Engineering Ltd
NSE:VARROC

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Varroc Engineering Ltd
NSE:VARROC
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Price: 533.8 INR 2.56% Market Closed
Market Cap: ₹81.6B

EV/GP

2.6
Current
12%
Cheaper
vs 3-y average of 3

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.6
=
Enterprise Value
₹84.7B
/
Gross Profit
₹30.9B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.6
=
Enterprise Value
₹84.7B
/
Gross Profit
₹30.9B

Valuation Scenarios

Varroc Engineering Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (3), the stock would be worth ₹603.84 (13% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+148%
Average Upside
66%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.6 ₹533.8
0%
3-Year Average 3 ₹603.84
+13%
5-Year Average 2.8 ₹555.8
+4%
Industry Average 5.2 ₹1 054.74
+98%
Country Average 6.5 ₹1 321.8
+148%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 84% of companies in India
Percentile
16th
Based on 2 475 companies
16th percentile
2.6
Low
0.2 — 4.1
Typical Range
4.1 — 10.8
High
10.8 —
Distribution Statistics
India
Min 0.2
30th Percentile 4.1
Median 6.5
70th Percentile 10.8
Max 34 392.2

Varroc Engineering Ltd
Glance View

In the bustling ecosystem of the global automotive industry, Varroc Engineering Ltd. has carved out a notable position as a dynamic player specializing in automotive components. Founded in 1990 by the industrious Tarang Jain, the company started as a modest manufacturer of plastic moldings. Over the decades, Varroc metamorphosed into a prominent entity in the automotive supply chain, diversifying its offerings to a comprehensive portfolio that includes lighting systems, electrical components, powertrain products, and a range of body and chassis parts. With its headquarters nestled in Aurangabad, India, the company rapidly scaled its operations, extending its footprint across 36 manufacturing facilities in multiple countries, establishing itself as a globally recognized supplier, especially dominant in the two-wheeler segment. Varroc Engineering Ltd.'s growth trajectory is fueled by its strategic focus on innovation and robust customer relationships. By leveraging technological advancements, it seamlessly integrates smart lighting solutions and electronics into its platforms, catering to the ever-evolving demands of automakers pursuing efficient and sustainable vehicle models. The company capitalizes on its strong partnerships with original equipment manufacturers (OEMs), ensuring a steady revenue stream by supplying a diversified range of components. Additionally, its efforts in research and development drive cost efficiency and product differentiation, allowing it to maintain competitive pricing while meeting the stringent quality standards of the automotive giants it serves. Through this strategic amalgamation of innovation, global reach, and customer-centric focus, Varroc Engineering Ltd. sustains its momentum in the fast-paced domain of automotive component supply.

VARROC Intrinsic Value
728.09 INR
Undervaluation 27%
Intrinsic Value
Price ₹533.8
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