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

VARROC is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.

Financial Ratios:

currentRatio 0.906000
forwardPE 16.708567
debtToEquity 69.993000
earningsGrowth -0.637000
revenueGrowth 0.063000
grossMargins 0.347420
operatingMargins 0.062850
trailingEps 4.000000
forwardEps 30.710000

VARROC's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
Varroc Engineering Limited's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
VARROC's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.
VARROC's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that VARROC is likely to outperform its previous year's financial performance.

Price projections:

Price projections for VARROC
Price projections for VARROC

VARROC's price projections have gradually risen, indicating growing confidence in the company's prospects. This upward trend suggests that analysts expect VARROC to continue performing well in the future.

Recommendation changes over time:

Recommendations trend for VARROC
Recommendations trend for VARROC


Analysts have been favoring Varroc Engineering Limited with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning Varroc Engineering Limited as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.