Varroc Engineering Limited (IN:VARROC)
:VARROC
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Varroc Engineering Limited
(VARROC)
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Rating:69Neutral
Price Target:
₹541.00
▼(-11.43% Downside)
Action:ReiteratedDate:11/04/25
Varroc Engineering Limited's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust cash flow and reduced debt levels are significant strengths. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which tempers the overall score.
Positive Factors
Strong free cash flow
Varroc's conversion to positive and growing free cash flow (4.48bn in 2025) with operating cash consistently above net income provides durable funding for capex, program investments and debt paydown. Persistent FCF reduces reliance on external financing across cycles.
Negative Factors
Volatile net income and thin margins
Historical swings from negative to positive net income and persistently thin net margins expose earnings to commodity, warranty and program-cost swings. Thin bottom-line profitability limits retained earnings and makes long-term EPS growth sensitive to modest adverse events.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Varroc's conversion to positive and growing free cash flow (4.48bn in 2025) with operating cash consistently above net income provides durable funding for capex, program investments and debt paydown. Persistent FCF reduces reliance on external financing across cycles.
Read all positive factors
Varroc Engineering Limited (VARROC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹75.43B
Dividend Yield0.16%
Average Volume (3M)13.17K
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth7.38%
EPS Growth-73.62%
CountryIN
Employees3,907
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)5.30
Shares Outstanding152,786,400
10 Day Avg. Volume5,337
30 Day Avg. Volume13,169
Financial Highlights & Ratios
PEG Ratio-1.20
Price to Book (P/B)4.18
Price to Sales (P/S)0.80
P/FCF Ratio14.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)19.13
Revenue Forecast (FY)₹88.78B
Varroc Engineering Limited Business Overview & Revenue Model
Company Description
Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, and precision metallic components worldwide. It operates through Automotive and Others...
How the Company Makes Money
Varroc makes money primarily by manufacturing and supplying automotive components and systems to vehicle manufacturers (OEMs). Revenue is largely generated through: (1) sale of exterior lighting products—such as headlamps, tail lamps, and related ...
Varroc Engineering Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.09B | 81.54B | 75.52B | 68.91B | 58.44B | 43.74B |
| Gross Profit | 29.19B | 28.33B | 27.15B | 23.68B | 19.20B | 15.30B |
| EBITDA | 7.65B | 7.26B | 7.02B | 5.42B | 6.83B | 6.28B |
| Net Income | 1.39B | 612.30M | 5.26B | -8.20B | -11.10B | -6.32B |
Balance Sheet | ||||||
| Total Assets | 47.73B | 46.72B | 45.60B | 46.21B | 109.98B | 112.25B |
| Cash, Cash Equivalents and Short-Term Investments | 3.60B | 2.01B | 2.27B | 3.57B | 1.18B | 7.45B |
| Total Debt | 9.15B | 11.18B | 13.90B | 18.06B | 16.25B | 36.95B |
| Total Liabilities | 30.51B | 30.74B | 30.34B | 36.17B | 89.84B | 81.69B |
| Stockholders Equity | 16.84B | 15.65B | 14.97B | 9.76B | 19.89B | 30.28B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 4.48B | 3.64B | 880.13M | -2.18B | -3.01B |
| Operating Cash Flow | 3.66B | 7.37B | 6.38B | 6.86B | 6.36B | 4.74B |
| Investing Cash Flow | -247.66M | -2.46B | -1.66B | -2.86B | -7.63B | -6.44B |
| Financing Cash Flow | -3.36B | -4.90B | -6.64B | -2.16B | -3.35B | -1.52B |
Varroc Engineering Limited Technical Analysis
Negative
610.85
Price Trends
539.67
Negative
586.33
Negative
579.85
Negative
Market Momentum
-16.36
Negative
43.10
Neutral
28.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARROC, the sentiment is Negative. The current price of 610.85 is above the 20-day moving average (MA) of 505.68, above the 50-day MA of 539.67, and above the 200-day MA of 579.85, indicating a bearish trend. The MACD of -16.36 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VARROC.
Varroc Engineering Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹54.94B | 23.47 | ― | 1.24% | 16.64% | 22.21% | |
69 Neutral | ₹75.43B | -220.37 | ― | 0.16% | 7.38% | -73.62% | |
66 Neutral | ₹45.32B | 16.59 | ― | 2.75% | 6.96% | 6.33% | |
66 Neutral | ₹110.37B | 31.91 | ― | 0.35% | 36.70% | 36.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ₹63.91B | 32.87 | ― | 2.59% | 26.97% | 8.03% | |
54 Neutral | ₹56.30B | 126.88 | ― | 0.63% | 14.20% | 16.80% |
* Consumer Cyclical Sector Average
IN:VARROC
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Varroc Engineering Limited Corporate Events
Varroc Engineering Closes Trading Window Ahead of FY26 Results
Mar 17, 2026
Varroc Engineering Limited has announced the closure of its trading window for designated persons and their relatives, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. The restr...
Varroc Gains New Voluntary ESG Rating From SEBI-Registered Provider
Mar 9, 2026
Varroc Engineering Limited disclosed that SEBI-registered ESG rating provider CFC Finlease has voluntarily assigned the company an ESG score of 75, based solely on publicly available information. This new assessment follows earlier ESG ratings fro...
Varroc Schedules Investor Meet With Valcore Capital Advisors
Feb 19, 2026
Varroc Engineering Limited has notified the exchanges that its representatives will participate in a virtual meeting with institutional investor Valcore Capital Advisors on February 24, 2026, at 3:30 p.m. The interaction will be conducted via conf...
Varroc Engineering Files Q3 FY26 Earnings Call Transcript With Exchanges
Feb 10, 2026
Varroc Engineering Limited has released the transcript of its investor and conference call discussing the unaudited financial results for the quarter and nine months ended December 31, 2025. The call, held on February 5, 2026, featured the company...
Varroc Engineering Sets February 5 Board Meet to Review Q3 FY 2025-26 Results
Jan 19, 2026
Varroc Engineering Limited has announced that its Board of Directors will meet on 5 February 2026 to consider and approve the company’s standalone and consolidated unaudited financial results for the quarter and nine months ended 31 December...
Varroc Engineering Launches Voluntary Retirement Scheme for Workmen
Jan 16, 2026
Varroc Engineering Limited has launched a Voluntary Retirement Scheme (VRS) for permanent workmen at several of its facilities, structured to be advantageous for both the company and participating employees. The company received 432 applications f...
Varroc Engineering Raises Rs 50 Crore via Short-Term Commercial Paper Issue
Jan 1, 2026
Varroc Engineering Limited has issued and allotted commercial papers aggregating Rs 50 crore to Kotak Mahindra Bank, marking a short-term fundraising move via the money market. The 26-day instruments, carrying a 6.70% discount rate and a face valu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.