VARROC ENGINEERING LTD. Intrinsic Value
VARROC · Automobile and Auto Components · Current price ₹877.1
Is VARROC ENGINEERING LTD. undervalued?
DocStoX estimates the fair value of VARROC ENGINEERING LTD. at ₹353 per share, versus the current market price of ₹877. That puts the stock about -59.7% 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.
Margin of safety
Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹877 versus an intrinsic value of ₹353, VARROC ENGINEERING LTD. currently offers -59.7% of negative margin (i.e. a premium).
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.