Varroc is the 6th largest global automotive lighting company and the 2nd largest in EV lighting. Thus it is ideally placed to capture the migration within the automotive lighting industry from halogen/xenon to LED. Over 2014-16, Varroc Lighting Systems has grown three times faster at 27.5% CAGR v/s an average of 8.6% for its competitors (Top 8). Domestic business will be aided by deeper penetration into existing clients by supplying more products. Varroc is being offered at a PE of 28.9x FY18 (vs. domestic peer average of 41.6x) and EV/EBITDA of 15.9x FY18 (vs. domestic peer average of 17.6x). Thus based on the business capabilities, industry growth prospects and valuations, we recommend subscribing to the issue.