Varroc Engineering Ltd
Ticker: VARROC
Decent
56/100
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Investing Reference
Price
598.65
Market Cap
9146.56
Debt/Equity
0.6999
ROE %
3.919
PB
5.7240
Promoter %
75.000
Pledge %
0.000
1Y Rev Growth %
7.164
5Y Rev Growth %
-6.104
NP Margin %
0.748
NP Margin 5Y Avg %
-7.410
Trading Reference
1M Return %
-1.241
6M Return %
42.079
1Y Return %
0.563
% Away 52W High
10.941
% Away 52W Low
60.024
Daily Volume
144267
Investment Verdict
Avoid
Score 39/100 · Position size: 0%
Fundamentals/valuations or risk flags are weak. Avoid for long-term investing.
Trading Verdict
Avoid
Score 41/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
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Business Overview
Varroc Engineering Ltd is a leading global automotive component manufacturer based in India, specializing in innovative solutions for the automotive industry. With a strong focus on technology and sustainability, Varroc caters to a diverse clientele, including major automotive OEMs. The company is committed to enhancing vehicle performance and safety through its high-quality products. Varroc's strategic investments in R&D and global expansion position it as a key player in the evolving automotive landscape, making it a valuable partner for future mobility solutions.
- Leading automotive component manufacturer
- Focus on innovation and sustainability
- Serves major automotive OEMs
- Strong commitment to R&D
- Global expansion strategy
- Enhances vehicle performance and safety
Investment Thesis
Varroc Engineering Ltd presents a compelling investment opportunity due to its strong promoter credibility, promising growth in digital services, and attractive valuation compared to peers. The company's strategic positioning in the automotive sector enhances its potential for long-term value creation.
- Strong promoter group with a proven track record in the automotive industry.
- Significant growth potential in digital services, catering to evolving market demands.
- Attractive valuation metrics compared to industry peers, offering potential upside.
- Diverse product portfolio across automotive lighting and electronics.
- Focus on innovation and sustainability aligns with global automotive trends.
Opportunity vs Risk
Opportunities
- Growing demand for automotive components
- Expansion into electric vehicle market
- Strong export potential
- Government initiatives for manufacturing
- Innovative product development
Risks ⚠️
- Volatility in raw material prices
- Dependence on automotive sector
- Regulatory compliance challenges
- Economic slowdown impacts
- Intense competition in industry
Peer Perspective
Varroc Engineering Ltd trades at a discount to peers like Minda Industries and Bosch, with potential for rerating contingent on improving margin stability and consistent growth in the electric vehicle segment.
Future Outlook
Varroc Engineering Ltd is poised for growth in the automotive sector, driven by innovation and expanding market presence. Successful execution of cost control measures will be crucial to maximize profitability and shareholder value.
📊 Stock Investment Checklist (100 Points)
Varroc Engineering Ltd • Updated: 2025-09-18 01:32:38
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8BusinessHighThe automotive components sector is evolving with electric vehicles, but Varroc's competitive edge is unclear.
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10GrowthHighRevenue growth has been inconsistent, with some fluctuations in profit margins.
-
10ProfitabilityHighROE and ROCE are moderate, with operating cash flow showing some volatility.
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9ValuationHighValuation metrics are slightly above industry averages, indicating potential overvaluation.
-
7BalanceHighDebt levels are manageable, but liquidity ratios could be improved.
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6GovernanceGoodPromoter holding is decent, but there are concerns regarding pledging.
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8DriversHighGrowth drivers exist in EV components, but execution risks remain high.
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6TechnicalsGoodMarket sentiment is mixed, with low liquidity affecting price action.
Final Score & Verdict
Score 56 / 100
• Decent
Varroc Engineering Ltd shows potential in a growing sector, but faces challenges in execution and profitability consistency.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 55/100
- Market Confidence: 60/100