Cyclical: 2W lighting, deleveraged
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Varroc Engineering | Held | 67.14 | 12.64% | 13,244 Cr | Cyclical: 2W lighting, deleveraged | |
| Uno Minda | Not held | n/a | n/a | n/a | Uno Minda is the higher-quality diversified play (ROE 19%, Q1 PAT +50%) but at 58.6x TTM / 10.5x P/B; Varroc at 44x TTM with one-offs and 26x FY28e offers similar 24-30% growth at a discount. | Screener · Tijori |
| Lumax Industries / Lumax Auto Tech | Not held | n/a | n/a | n/a | Lumax Industries (28.7x, ROE 22%) is a pure 4W lighting JV play with Rs 973 cr debt and a smaller Rs 5,772 cr mcap; Lumax Auto Tech trades 39.8x / 10.9x P/B. Varroc gives EV-electronics exposure and Bajaj export leverage instead of 4W-lighting concentration. | Screener · Tijori |
| Minda Corporation | Not held | n/a | n/a | n/a | Minda Corp is at 41.7x TTM with 14.7% ROE and ROCE 12.7% vs Varroc ROCE 19%; Varroc is growing faster (Q1 revenue +30% vs +33% for Minda but with stronger EV mix) at a lower FY28e multiple. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
Maruti is the PV leader but at 30x prices a recovery that CNG/hybrid mix has already delivered, and it is the most exposed to small-car weakness; Tata Motors is a JLR story; M&M is the best-run OEM but at 30x+ after a 3x move we prefer Bajaj's export optionality and net cash. Hero MotoCorp is losing share to scooters and EVs; TVS and Eicher are great franchises at 40–45x. Among components, Bharat Forge carries a defence multiple and Motherson a European-auto cycle we do not want.
All sectors we avoid or underweight →Bajaj Auto (1.6%, Value): the most profitable two-wheeler company in the world (20% EBITDA margin, 30% ROE), exports to 100+ countries, a 45%+ three-wheeler share, and a multiple (34x/24x FY27E/28E) below Eicher and TVS despite comparable growth. RK Forgings (2.1%, Cyclical): a top-three global CV forging supplier whose FY26 earnings were wiped out by a ~₹270 crore inventory discrepancy — the fix is done, the customers stayed, and FY28E P/E is 38x on trough recovery. Varroc (0.8%, Cyclical): a two-wheeler lighting and electronics supplier with an 80% domestic 2W share of business, net debt now under 0.5x and margins recovering to 10%.
| Lights for Electric Vehicles - Market Share | 20 % | as of Sep 20 |