Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by overseas recovery and order wins, despite slight margin pressures.
Basis of our Recommendation
Varroc Engineering is positioned for moderate growth, supported by a strong recovery in overseas markets and recent order wins. However, the company is experiencing slight margin pressures that could impact profitability.
Why We Like This Stock
- Strong overseas market recovery
- Recent order wins
- Moderate growth potential
Things To Watch Out For
- Slight margin pressures
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,552 | 8,154 | 8,890 | 9,602 | 10,459 |
| Profit Before Tax (Cr.) | 307 | 310 | 385 | 432 | 485 |
| PBT Margin | 4.1% | 3.8% | 4.3% | 4.5% | 4.6% |
| Net Profit (Cr.) | 268 | 214 | 356 | 320 | 359 |
| EPS | 17.1 | 13.4 | 22.9 | 20.9 | 23.5 |
Company Overview
Show Company Profile
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 components, crankpins and balancers, and wiper motors; light engines, light control units, and exterior and interior lighting products; and human-machine interface solutions, which include digital instrument clusters, sensors, and ergonomic handlebar switches. The company also provides polymer components, metallic forging and casting products, engine parts, and consumables and accessories; and intelligent cockpits and ADAS solutions, such as driver and cabin monitoring systems, surround view systems, and infotainment systems. In addition, it operates connected vehicle platform that integrates cloud providers, as well as supports device-agnostic connectivity. The company serves passenger cars, commercial vehicles, two and three wheelers, and off-highway vehicles original equipment manufacturers. Varroc Engineering Limited was incorporated in 1988 and is based in Aurangabad, India.