VARROC ENGINEERING LTD. Fair Value
VARROC · Automobile and Auto Components · Current price ₹827
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹120 | 15% ROE fading to 14% over ~3 yrs, on ₹117 book |
| Relative P/E | ₹650 | EPS × 44.1 peer-median P/E |
| Graham floor | ₹197 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹750 | Street consensus 12-month target price |
Is VARROC ENGINEERING LTD. undervalued?
DocStoX estimates the fair value of VARROC ENGINEERING LTD. at ₹353 per share, versus the current market price of ₹827. That puts the stock about -57.3% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹120), Relative P/E (₹650), Graham floor (₹197), Analyst target (₹750). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹120 (bear) to ₹353 (base) to ₹750 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on VARROC ENGINEERING LTD.
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.