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Swing Capital

Varroc Engineering Ltd

NSE: VARROC BSE: 541578Auto

Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Chhatrapati Sambhaji Nagar-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe[1]

₹549
52W: ₹462 — ₹695
PE 22.2 · Book ₹126 · +336% vs book
Market Cap₹8,393 Cr
Stock P/E22.2Price to Earnings
ROCE19.7%Return on Capital
ROE17.7%Return on Equity
Div. Yield0.18%Face Value ₹1

Strengths

  • +Company has reduced debt.
  • +Company has delivered good profit growth of 22.6% CAGR over last 5 years

Weaknesses

  • −Stock is trading at 4.33 times its book value
  • −Company's cost of borrowing seems high

Shareholding Pattern

Promoters75%
FIIs4.45%
DIIs11.35%
Public9.2%
CategoryJun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters75%75%75%75%75%75%75%75%
FIIs4.24%3.8%▼0.43.89%▲0.13.92%▲0.03.99%▲0.14.3%▲0.34.36%▲0.14.45%▲0.1
DIIs12.74%12.65%▼0.112.49%▼0.212.79%▲0.313.03%▲0.212.75%▼0.312.4%▼0.311.35%▼1.1
Public8.04%8.54%▲0.58.62%▲0.18.3%▼0.37.99%▼0.37.97%▼0.08.23%▲0.39.2%▲1.0

Financial Statements

MetricSep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales1,1111,7161,2001,6951,8851,8761,9131,8432,0382,115
Expenses1,0271,5391,0081,5311,6771,7021,6921,6331,8531,896
Operating Profit84177192163208174221210184219
OPM %8%10%16%10%11%9%12%11%9%10%
Net Profit238264458046106876832
EPS ₹0.1424.984.212.955.212.986.925.674.432.1

AI Insights

Revenue Trend

TTM revenue at ₹7,909Cr, up 7.3% YoY. OPM at 11%.

Debt Position

Borrowings at ₹738Cr. Debt-to-equity ratio: 0.39x. Healthy balance sheet.

Capex Cycle

CWIP at ₹62Cr (4% of fixed assets). Moderate ongoing capital expenditure.

Institutional Flow

DIIs: 11.35% (-0.86pp change). FIIs: 4.45% (-0.62pp change). Promoters hold 75%.

Margin & Efficiency

ROCE improving from 7% (Mar 2014) to 20% (Mar 2025). Working capital days: -32.

Valuation

PE 22.2x with 19.7% ROCE. Price is 336% above book value of ₹126. Dividend yield: 0.18%.

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