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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 1.17% Market Closed
Market Cap: ₹81.6B

P/OCF

11
Current
12%
Cheaper
vs 3-y average of 12.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
11
=
Market Cap
₹84.4B
/
Operating Cash Flow
₹7.4B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
11
=
Market Cap
₹84.4B
/
Operating Cash Flow
₹7.4B

Valuation Scenarios

Varroc Engineering Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (12.5), the stock would be worth ₹607.35 (14% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+109%
Average Upside
54%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 11 ₹533.8
0%
3-Year Average 12.5 ₹607.35
+14%
5-Year Average 12 ₹582.55
+9%
Industry Average 19.9 ₹970.81
+82%
Country Average 23 ₹1 118.09
+109%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close

Market Distribution

Lower than 78% of companies in India
Percentile
22nd
Based on 2 204 companies
22nd percentile
11
Low
0.5 — 14
Typical Range
14 — 39.7
High
39.7 —
Distribution Statistics
India
Min 0.5
30th Percentile 14
Median 23
70th Percentile 39.7
Max 28 676

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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