Overall Fundamental outlook

Business Operations:

Sector: Consumer Cyclical
Industry: Auto Parts

Varroc Engineering Limited designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical and electronics components, advanced safety systems, and precision metallic components worldwide. The company operates through Automotive and Others segments. It offers unpainted and painted body parts; exterior and interior systems; seating systems; mirror systems; air filters; automotive accessories; lighting systems; instrument clusters; catalytic converters; switches; motors and magnetos; electronics; traction motors and controllers; DC-DC converters; and battery management systems, as well as engine valves. The company also provides precision, forged, and machined parts for engine and transmissions to two-wheeler, three-wheeler, four-wheeler, commercial vehicle, off-highway, earthmoving, and oil drilling applications; and transmission gears and assemblies, crankpins, connecting rods, flanges, ring gears, crankshafts, camshafts, knuckles, front axle beams, hydraulic shafts, heavy undercarriage parts, and drill bits and cones, as well as head and signal lamps. It serves passenger car, commercial vehicle, two-wheeler, three-wheeler, and off-highway vehicle original equipment manufacturers. Varroc Engineering Limited was incorporated in 1988 and is based in Aurangabad, India.

Revenue projections:

Revenue projections for VARROC
Revenue projections for VARROC

With VARROC's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.

Financial Ratios:

currentRatio 0.906000
forwardPE 17.910038
debtToEquity 69.993000
earningsGrowth -0.637000
revenueGrowth 0.063000
grossMargins 0.361150
operatingMargins 0.065150
trailingEps 4.000000
forwardEps 30.710000

Varroc Engineering Limited's Forward PE being in a reasonable range suggests the stock is fairly priced based on its earnings. The stock isn't overpriced, leaving room for growth, making it an attractive investment for those seeking opportunities for future value appreciation.
VARROC's low growth in both earnings and revenue signals a potential profit decline. This could be a sign of financial trouble, suggesting that the company's profitability might shrink in the near future.
VARROC's negative gross and operating margins indicate that the company is currently unprofitable at both the production and operational levels. This suggests significant challenges in managing costs and generating revenue, which could impact its overall financial health.
VARROC's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting VARROC to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for VARROC
Price projections for VARROC

VARROC's price has consistently hovered around the lower end of analysts' projections. This pattern may reflect concerns regarding the company's ability to achieve its anticipated growth.

Recommendation changes over time:

Recommendations trend for VARROC
Recommendations trend for VARROC


Recent analysis shows a strong buy bias for Varroc Engineering Limited, encouraging investors to view it as a solid investment option. The positive sentiment surrounding Varroc Engineering Limited suggests it could be an attractive place to allocate funds, motivating potential investors to consider the stock as a valuable part of their portfolio.