Is Varroc Engineering the Best Stock in Its Sector? A Look at the Numbers

Varroc Engineering CMP Rs 795 (09 Oct 2026). Market cap Rs 12,269 Cr. ROE 14.29%. P/E 61.30x versus Industry P/E 37.01x.

Updated: 15 Oct 2026 • 4:34 pm

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Is Varroc Engineering the Best Stock in Its Sector? A Look at the Numbers

Quick Answer

Varroc Engineering is one of the names investors compare when screening the Automobile & Ancillaries sector, built on a 14.29% return on equity and a P/E of 61.30x against an Industry P/E of 37.01x. Whether Varroc Engineering is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Automobile & Ancillaries sector peers, so you can judge that for yourself.

Is Varroc Engineering the best stock in its sector? The stock trades on the NSE at Rs 795 as of 09 October 2026, within its 52-week range of Rs 462.00 to Rs 912.20. Varroc Engineering Ltd, incorporated in 1988, is the flagship of the Aurangabad-based Varroc Group and a global tier-1 auto components supplier.

Varroc Engineering sits in the Automobile & Ancillaries sector, and its 14.29% ROE and 61.30x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector's Industry P/E benchmark.

Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers

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Table of Contents

About Varroc Engineering

Varroc Engineering Ltd, incorporated in 1988, is the flagship of the Aurangabad-based Varroc Group and a global tier-1 auto components supplier. Its global operations expose it to both Indian and overseas auto demand cycles. The stock trades about 13 percent below its 52-week high and about 72 percent above its 52-week low. At a market capitalisation of Rs 12,269 Cr, it is tracked as part of the Automobile & Ancillaries sector on Univest.

Is Varroc Engineering the Best Stock in Its Sector?

Varroc Engineering makes its case as the best stock in its sector primarily on return on equity, combining a 14.29% ROE with a 61.30x P/E against the sector's 37.01x Industry P/E. Varroc Engineering's 61.30x P/E is well above the 37.01x Industry P/E with a 14.29% ROE and a 6.89 P/B, so the premium needs sustained earnings growth to be justified.

Metric	Varroc Engineering
CMP (NSE)	Rs 794.55
52-Week High / Low	Rs 912.20 / Rs 462.00
Market Cap	Rs 12,269 Cr
P/E (TTM) vs Industry P/E	61.30x vs 37.01x
P/B	6.89
ROE	14.29%
EPS (TTM)	Rs 13.10
Dividend Yield	0.19%
Debt to Equity	0.52

Compare Varroc Engineering Against Other Automobile & Ancillaries Sector Stocks

How Varroc Engineering Compares Against Its Automobile & Ancillaries Sector Peers

The table below sets Varroc Engineering against 2 other Automobile & Ancillaries sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
Varroc Engineering	12,269	61.30	14.29%	0.52
Pricol	7,917	29.55	19.99%	0.30
Lumax Auto Technologies	12,055	31.57	23.04%	1.02
Peer average (2 companies)	-	30.56	21.52%	0.66

Against this peer set, Varroc Engineering's 14.29% ROE is below the 21.52% peer average, and its P/E of 61.30x runs above the peer average of 30.56x. Varroc Engineering's 61.30x P/E is well above the 37.01x Industry P/E with a 14.29% ROE and a 6.89 P/B, so the premium needs sustained earnings growth to be justified.

What Makes Varroc Engineering Worth Watching in Automobile & Ancillaries

Global footprint: A tier-1 supplier model spreads revenue across markets and customers.
Premium valuation: A 61.30x P/E against a 37.01x Industry P/E leaves little cushion.
Moderate leverage: A debt to equity ratio of 0.52 is manageable.

Varroc Engineering Valuation: Is It Justified?

Varroc Engineering's 61.30x P/E is well above the 37.01x Industry P/E with a 14.29% ROE and a 6.89 P/B, so the premium needs sustained earnings growth to be justified. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.

Also read – Is Total Transport Systems the Best Stock in Its Sector? A Look at the Numbers

Download the Univest iOS App or Univest Android App to track Varroc Engineering and other Automobile & Ancillaries sector stocks.

How to Track Varroc Engineering Before You Invest

Before deciding whether Varroc Engineering deserves its label as the best stock in its sector for your own portfolio, compare it directly against Automobile & Ancillaries sector peers using the steps below.

Open the Univest Screener and search for Varroc Engineering to view live price, valuation ratios, and peer comparisons within the Automobile & Ancillaries sector.
Compare its P/E, P/B, and ROE against other Automobile & Ancillaries sector stocks before deciding if the current valuation fits your strategy.
Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

Varroc Engineering earns a place in the best stock in its sector conversation on the strength of a 14.29% ROE and a P/E of 61.30x against a 37.01x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Is Varroc Engineering the best stock in its sector?

Ans. Varroc Engineering has a 14.29% ROE and trades at 61.30x P/E against a 37.01x Industry P/E, and compares below the peer average ROE of 21.52% in this article's named comparison, so the answer depends on what an investor is prioritising.

What is the current share price of Varroc Engineering?

Ans. Varroc Engineering was trading at Rs 794.55 on the NSE as of 09 October 2026, within its 52-week range of Rs 462.00 to Rs 912.20.

What sector does Varroc Engineering belong to?

Ans. Varroc Engineering is classified under the Automobile & Ancillaries sector on Univest.

How does Varroc Engineering compare to its sector peers on P/E?

Ans. Varroc Engineering's P/E of 61.30x is above the 30.56x average of the 2 named peers compared in this article.

What is Varroc Engineering's return on equity?

Ans. Varroc Engineering reported a return on equity of 14.29%, which is below the 21.52% average of its named peers in this comparison.

Should I invest in Varroc Engineering based on its sector position?

Ans. Varroc Engineering's sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.