Varroc Engineering Limited (VARROC) AI Stock Analysis

• Market Cap: ₹82.41B
• Dividend Yield: 0.19%
• Average Volume (3M): 8.15K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 1.44
• Revenue Growth: 8.55%
• EPS Growth: -74.55%
• Country: IN
• Employees: 3,907
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Auto - Parts
• EPS (TTM): 4.00
• Shares Outstanding: 152,786,400
• 10 Day Avg. Volume: 4,467
• 30 Day Avg. Volume: 8,153
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹592.00
• Price Target Upside: 9.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: ₹575.00 ▲(6.14% Upside)

Varroc Engineering Limited's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and improved cash flow. However, technical indicators suggest potential short-term weakness, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events limits further insights.

Varroc Engineering Limited Business Overview & Revenue Model

Company Description

Varroc Engineering Limited is a global automotive component manufacturer and supplier. Headquartered in India, the company specializes in providing a wide range of products including exterior lighting systems, powertrains, electrical and electronics components, and precision metallic parts. Varroc serves an array of sectors within the automotive industry, producing components for two-wheelers, passenger cars, and commercial vehicles. With a strong emphasis on innovation and technology, Varroc leverages its global manufacturing and R&D footprint to deliver high-quality solutions to leading automotive original equipment manufacturers (OEMs) around the world.

How the Company Makes Money

Varroc Engineering Limited generates revenue primarily through the manufacture and sale of automotive components and systems. The company's key revenue streams include the production of exterior lighting systems, which represent a significant portion of its sales, as well as the sale of powertrain components, electrical and electronic systems, and precision metallic parts. Varroc's earnings are bolstered by its diverse client base, which includes major global automotive OEMs. Strategic partnerships and joint ventures also play a crucial role in its business model, allowing Varroc to expand its market reach and enhance its technological capabilities. Additionally, the company invests in research and development to innovate and maintain competitive advantage, which in turn drives sales and profitability.

Varroc Engineering Limited Financial Statement Overview

Summary

Varroc Engineering Limited has shown a solid recovery in revenue and improved profitability metrics. The balance sheet is strengthening with reduced debt levels and stable equity. Cash flow generation is robust, supporting the company's financial flexibility. However, maintaining net income growth and managing liabilities remain critical.

Income Statement

Varroc Engineering Limited has demonstrated a solid recovery in revenue, growing from 57.85 billion in 2022 to 81.54 billion in 2025. The gross profit margin improved, indicating better cost management. However, fluctuations in net income, with negative figures in the early years and turning positive in later years, suggest potential volatility in profitability. EBITDA margins are stable, reflecting operational efficiency, but net profit margins remain thin, indicating room for improvement.

Balance Sheet

The balance sheet shows a decrease in total debt from 42.55 billion in 2020 to 11.18 billion in 2025, improving the debt-to-equity ratio and reflecting better financial management. Stockholders' equity has stabilized, contributing to a stronger equity ratio. However, overall liabilities remain high relative to assets, posing potential risk if not managed effectively.

Cash Flow

Free cash flow has shown a positive growth trend, with significant improvement from negative figures in earlier years to a robust 4.48 billion in 2025. Operating cash flow consistently exceeds net income, indicating strong cash generation capability. This positive cash flow trajectory supports future investments and debt reduction efforts.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	80.30B	81.54B	73.61B	68.54B	57.85B	43.34B
Gross Profit	23.84B	8.52B	24.33B	6.38B	17.71B	14.21B
EBITDA	7.21B	6.57B	8.36B	5.98B	3.93B	4.54B
Net Income	975.11M	612.30M	5.26B	-8.20B	-11.10B	-6.32B
Balance Sheet
Total Assets	0.00	46.72B	45.60B	46.21B	109.98B	112.25B
Cash, Cash Equivalents and Short-Term Investments	2.05B	2.15B	2.27B	3.57B	1.18B	7.45B
Total Debt	0.00	11.18B	13.90B	18.06B	16.25B	36.95B
Total Liabilities	-16.40B	30.74B	30.34B	36.17B	89.84B	81.69B
Stockholders Equity	16.40B	15.65B	14.97B	9.76B	19.89B	30.28B
Cash Flow
Free Cash Flow	0.00	4.48B	3.64B	880.13M	-2.18B	-3.01B
Operating Cash Flow	0.00	7.37B	6.38B	6.86B	6.36B	4.74B
Investing Cash Flow	0.00	-2.46B	-1.66B	-2.86B	-7.63B	-6.44B
Financing Cash Flow	0.00	-4.90B	-6.64B	-2.16B	-3.35B	-1.52B

Varroc Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 541.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARROC, the sentiment is Positive. The current price of 541.75 is above the 20-day moving average (MA) of 533.83, below the 50-day MA of 548.35, and above the 200-day MA of 517.77, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VARROC.

Varroc Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIEMIND	75 Outperform	₹53.65B	25.12		1.47%	17.45%	19.24%
SHARDAMOTR	74 Outperform	₹59.35B	17.56		2.53%	2.35%	8.08%
LUMAXTECH	72 Outperform	₹77.70B	41.44		0.49%	32.63%	34.16%
SAREGAMA	71 Outperform	₹91.54B	44.77		0.95%	38.81%	6.85%
VARROC	63 Neutral	₹82.41B	61.55		0.19%	8.55%	-74.55%
Sector *	61 Neutral	$17.78B	13.97	-5.40%	3.03%	1.50%	-15.71%
SUPRAJIT	59 Neutral	₹61.18B	56.01		0.59%	15.38%	-36.00%

Varroc Engineering Limited Corporate Events

Varroc Engineering Schedules Virtual AGM and Releases Annual Report

Varroc Engineering Limited has announced its 37th Annual General Meeting (AGM) scheduled for August 21, 2025, which will be conducted virtually. The company has also released its Annual Report for the financial year ending March 31, 2025. This move aligns with compliance regulations and reflects the company’s commitment to maintaining transparency and accessibility for its stakeholders.

Varroc Engineering Releases 2024-25 Sustainability Report

Varroc Engineering Limited has released its Business Responsibility and Sustainability Report for the financial year 2024-25, highlighting its adherence to ethical business practices and commitment to sustainability. The report underscores the company’s focus on integrity, employee well-being, human rights, environmental protection, and consumer responsibility, reinforcing its position as a responsible player in the automotive industry.

Varroc Engineering Limited Announces Web-Link for Annual Report and AGM Details

Varroc Engineering Limited has announced the dispatch of a letter containing a web-link and path to access its Annual Report for the financial year 2024-25. The company is holding its 37th Annual General Meeting on August 21, 2025, which will be conducted via video conferencing. This move ensures compliance with SEBI regulations and provides shareholders with necessary information despite some not having registered email addresses.