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Model Note · VARROC ENGINEERING LTD. · 11 September 2026Page 1 of 2
Model Note
Prepared by the reader · not a MarketPing document
VARROC ENGINEERING LTD. Discounted cash flow · base FY26
VARROC ENGINEERING LTD.
Value per share, this model₹269
CMP 2026-09-10₹868.90
Difference(69.1)%
Growth the CMP implies41.8%/yr
This note states the assumptions and the arithmetic of one model of VARROC ENGINEERING LTD., built on its filed FY26 consolidated statements. The value is the outcome of the assumptions below and nothing else; it is not a fair value, a target or a recommendation.
Assumptions
Input
This model
Filed reference
Revenue growth, 5 years
9% a year
FY26 9.0% · 5-yr CAGR (4.7)%
EBITDA margin
8.8%
FY26 8.8% · 5-yr average 8.2%
Depreciation · capex, % of revenue
3.7% · 4.5%, fading to 1.2× depreciation
FY26 3.7% · 4.5%
Working capital, % of added revenue · tax
1.6% · 33.1%
6 working-capital days · effective 33.1%
Discount rate
11.00%
1-yr beta 1.21
After FY31
5% flat · mid-year discounting
—
Net debt · non-controlling interest · non-operating investments
₹613 · ₹0 · ₹0 cr
FY26 net debt ₹613 cr
Shares
15.28 crore
15.28 crore today
Source: SEBI results XBRL as filed with BSE/NSE, exchange prices; the reader's assumptions.
Projected cash flow to the firm
₹ crore
FY26
FY27
FY28
FY29
FY30
FY31
Revenue
8,890
9,691
10,563
11,513
12,550
13,679
growth %
9.0
9.0
9.0
9.0
9.0
9.0
EBITDA
786
853
930
1,013
1,104
1,204
Depreciation
(332)
(359)
(391)
(426)
(464)
(506)
NOPAT
304
331
360
393
428
467
less capex
(397)
(436)
(474)
(515)
(559)
(607)
less working-capital build
—
(13)
(14)
(15)
(17)
(18)
Free cash flow to firm
—
240
264
289
317
347
Present value
228
225
223
220
217
Source: the model; base year as filed.
Every figure is the reader's model over filed numbers · No rating, target or fair value is expressedmarketping.in
Model Note · VARROC ENGINEERING LTD. · 11 September 2026Page 2 of 2
From enterprise to equity
PV of the 5 explicit years
1,113
PV of the terminal value (76% of EV)
3,608
Enterprise value
4,721
less net debt
(613)
less non-controlling interest
0
add non-operating investments
0
Equity value
4,108
÷ 15.28 crore shares
₹269
Source: the model.
Sensitivity, ₹ per share
WACC ↓ · terminal growth →
4.0%
4.5%
5.0%
5.5%
6.0%
10.0%
279
303
331
365
409
10.5%
254
274
297
325
359
11.0%
233
250
269
292
319
11.5%
215
229
245
264
286
12.0%
199
211
225
241
259
Source: the model; n/a where terminal growth reaches the discount rate.
Statement
This note is the reader's own model over publicly filed information: SEBI results XBRL filed with BSE and NSE and exchange price data, assembled by MarketPing software; every assumption above is the reader's. It contains no research recommendation, no price target and no opinion by MarketPing on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Historical per-share figures are on the current share count. Where a figure is unavailable the table shows a dash rather than an estimate. Nothing here constitutes investment advice, an offer or a solicitation.
Every figure is the reader's model over filed numbers · No rating, target or fair value is expressedmarketping.in
