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 revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

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 Engineering Limited's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
VARROC's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
VARROC's negative gross and operating margins point to losses in both production and operations. This suggests the company is facing financial challenges and may need to address cost management or improve revenue generation.
VARROC's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that VARROC's financial performance will improve in the current financial year.

Price projections:

Price projections for VARROC
Price projections for VARROC

Price projections for VARROC have been revised upward over time, signaling increasing optimism about the company's future. This steady increase reflects a positive outlook for VARROC's growth and market performance.

Recommendation changes over time:

Recommendations trend for VARROC
Recommendations trend for VARROC


A recent buy bias from analysts toward Varroc Engineering Limited indicates strong confidence in the stock's future performance. This could encourage investors to park their money in Varroc Engineering Limited, viewing it as a stable and potentially rewarding investment opportunity with promising long-term growth prospects.