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Varroc Engineering Limited
(VARROC)
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Rating:63Neutral
Price Target:
₹865.00
▲(41.61% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving fundamentals (revenue growth, return to profitability, and a de-risked balance sheet), tempered by weak and volatile free cash flow. Technically the stock has strong upside momentum, but overbought signals increase near-term reversal risk. A high P/E and low dividend yield also weigh on the overall score.
Positive Factors
De-levered balance sheet
Debt fell to roughly 40% of equity from a much higher level in FY2023, materially reducing refinancing and liquidity risk. A stronger capital structure increases financial flexibility to fund working capital, capex and supply‑chain commitments, supporting multi‑period OEM contracts.
Negative Factors
Severe free cash flow weakness
A ~77.6% collapse in FCF to ~0.33B signals weak cash conversion or sharply higher investment needs. Persistent FCF volatility limits internal funding for growth, dividends and faster debt reduction, increasing reliance on external capital and raising medium‑term financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered balance sheet
Debt fell to roughly 40% of equity from a much higher level in FY2023, materially reducing refinancing and liquidity risk. A stronger capital structure increases financial flexibility to fund working capital, capex and supply‑chain commitments, supporting multi‑period OEM contracts.
Read all positive factors
Varroc Engineering Limited (VARROC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹126.16B
Dividend Yield0.18%
Average Volume (3M)49.49K
Price to Earnings (P/E)64.0
Beta (1Y)1.40
Revenue Growth14.66%
EPS Growth47.32%
CountryIN
Employees5,372
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)12.92
Shares Outstanding152,786,400
10 Day Avg. Volume16,682
30 Day Avg. Volume49,494
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)4.01
Price to Sales (P/S)0.80
P/FCF Ratio213.63
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)25.62
Revenue Forecast (FY)₹99.42B
Varroc Engineering Limited Business Overview & Revenue Model
Company Description
Varroc Engineering Limited provides aftermarket automotive components and solutions worldwide. It offers e-mobility solutions, such as traction motors, controllers, and DC-DC converters; ice powertrain solutions, including valves, transmission com...
How the Company Makes Money
VARROC primarily makes money by selling automotive components and systems to OEM customers under business-to-business supply arrangements. Its key revenue streams are: (1) Lighting systems: revenue from manufacturing and supplying exterior/interio...
Varroc Engineering Limited Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.97B | 88.90B | 81.54B | 75.52B | 68.91B | 58.44B |
| Gross Profit | 23.57B | 18.94B | 28.33B | 27.15B | 23.68B | 19.20B |
| EBITDA | 7.68B | 8.07B | 7.26B | 7.02B | 5.42B | 6.83B |
| Net Income | 1.97B | 2.25B | 612.30M | 5.26B | -8.20B | -11.10B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 48.75B | 46.72B | 45.60B | 46.21B | 109.98B |
| Cash, Cash Equivalents and Short-Term Investments | 2.42B | 2.42B | 2.01B | 2.27B | 3.57B | 1.18B |
| Total Debt | 0.00 | 9.25B | 11.18B | 13.90B | 18.06B | 16.25B |
| Total Liabilities | -18.18B | 30.57B | 30.74B | 30.34B | 36.17B | 89.84B |
| Stockholders Equity | 18.18B | 17.80B | 15.65B | 14.97B | 9.76B | 19.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 334.25M | 4.48B | 3.64B | 880.13M | -2.18B |
| Operating Cash Flow | 3.66B | 4.31B | 7.37B | 6.38B | 6.86B | 6.36B |
| Investing Cash Flow | -247.66M | -1.35B | -2.46B | -1.66B | -2.86B | -7.63B |
| Financing Cash Flow | -3.36B | -2.88B | -4.90B | -6.64B | -2.16B | -3.35B |
Varroc Engineering Limited Technical Analysis
Neutral
610.85
Price Trends
731.67
Positive
647.90
Positive
609.52
Positive
Market Momentum
30.49
Positive
57.98
Neutral
33.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARROC, the sentiment is Neutral. The current price of 610.85 is below the 20-day moving average (MA) of 832.37, below the 50-day MA of 731.67, and above the 200-day MA of 609.52, indicating a neutral trend. The MACD of 30.49 indicates Positive momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:VARROC.
Varroc Engineering Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹1.69T | 38.72 | ― | 0.37% | 14.02% | 32.06% | |
69 Neutral | ₹1.38T | 58.43 | ― | 0.58% | 13.63% | -11.32% | |
68 Neutral | ₹242.06B | 38.49 | ― | 1.59% | 28.68% | -7.21% | |
63 Neutral | ₹126.16B | 64.05 | ― | 0.18% | 14.66% | 47.32% | |
60 Neutral | ₹133.13B | 41.11 | ― | 0.28% | 33.28% | 72.85% | |
60 Neutral | ₹721.83B | 59.97 | ― | 0.21% | 18.80% | 15.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:VARROC
Varroc Engineering Limited
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37.06%
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Varroc Engineering Limited Corporate Events
Varroc Engineering Sets Investor Call to Discuss Q1 FY27 Unaudited Results
Jul 30, 2026
Varroc Engineering Limited has scheduled an analyst and investor conference call on August 6, 2026, at 5:00 p.m. IST to discuss its unaudited financial results for the quarter ended June 30, 2026. The call will feature key members of the managemen...
Varroc Engineering files Business Responsibility and Sustainability Report for FY25-26
Jul 28, 2026
Varroc Engineering Limited has released its Business Responsibility and Sustainability Report for the financial year 2025-26, in compliance with SEBI’s listing regulations. The report is included in the company’s latest annual report a...
Varroc Engineering Moves to Digital Annual Report Access, Announces Final Dividend
Jul 28, 2026
Varroc Engineering Limited has notified stock exchanges and shareholders that its Annual Report for the financial year 2025-26 is available online, in line with SEBI’s Listing Regulations. The company has dispatched letters containing the we...
Varroc Engineering Sets August 20 Online AGM, Releases FY26 Annual Report
Jul 28, 2026
Varroc Engineering Limited has scheduled its 38th Annual General Meeting for August 20, 2026, at 11:00 a.m. IST, to be conducted via video conference and other audio-visual means without the physical presence of shareholders. Alongside the AGM, th...
Varroc invests in captive solar power for Tamil Nadu and Karnataka plants
Jul 8, 2026
Varroc Engineering Limited has entered into agreements with two special purpose vehicles promoted by AMPIN Energy to procure captive solar power for its manufacturing facilities in Tamil Nadu and Karnataka. The SPVs will develop and operate renewa...
Varroc invests in captive solar power for Tamil Nadu and Karnataka plants
Jul 8, 2026
Varroc Engineering Limited operates in the automotive components industry, supplying a range of engineered products to vehicle manufacturers. The company runs manufacturing facilities in multiple Indian states, including Tamil Nadu and Karnataka, ...
Varroc Cancels Scheduled Investor Meeting, Cites Investor Exigencies
Jun 18, 2026
Varroc Engineering informed stock exchanges that a scheduled meeting with institutional investor Carnelian Asset Management, planned as an in-person session in Pune on June 18, 2026, has been cancelled due to unavoidable exigencies on the investor...
Varroc Releases FY26 Earnings Call Transcript for Investors
Jun 2, 2026
Varroc Engineering Limited has released the transcript of its investor and conference call discussing audited financial results for the quarter and full financial year ended March 31, 2026. The disclosure, shared with both NSE and BSE, supports tr...
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.