Check Before You Invest : Race Eco Chain Ltd

Snapshot

Q.1 Which industry/sub-sector does Race Eco Chain Ltd belong to?

Race Eco Chain Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.

Q.2 Is Race Eco Chain Ltd a good quality company?

Race Eco Chain Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Race Eco Chain Ltd undervalued or overvalued?

Race Eco Chain Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Race Eco Chain Ltd a good buy now?

Race Eco Chain Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Race Eco Chain Ltd?

Race Eco Chain Ltd revenue growth is 36% for FY-2025, which is below its 5-year CAGR of 96.21%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Race Eco Chain Ltd?

Race Eco Chain Ltd Return on capital employed is 9.4% for FY-2025, which is above its 5-year historical median of 8.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Race Eco Chain Ltd?

Race Eco Chain Ltd Return on Asset is 3.3%, which is in line with its 5-year historical median of 3.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Race Eco Chain Ltd?

Race Eco Chain Ltd Return on equity is 9.86% for FY-2025, which is above its 5-year historical median of 6.55%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Race Eco Chain Ltd?

Race Eco Chain Ltd Cash conversion cycle is 45 days, above its 5-year historical median of 36 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	4.04	4.8
ROE	9.86	6.55
ROCE	9.4	8.66
Cash Conversion Cycle	45 days	36 days

Q.6 Gross Profit margin of Race Eco Chain Ltd?

Race Eco Chain Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.2% for FY-2025, which is above its 5-year median of 1%, indicating increasing margins.

Q.7 Operating Profit Margin of Race Eco Chain Ltd?

Race Eco Chain Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.83% for FY-2025, which is above its 5-year median of 0.78% indicating increasing margins.

Q.8 Net Profit Margin of Race Eco Chain Ltd?

Race Eco Chain Ltd Net Profit Margin is 0.82% for FY-2025, is above with its 5-year median of 0.58%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.2	1
Operating Profit Margin	1.83	0.78
Net Profit Margin	0.82	0.58

Q.9 Debt to Equity ratio of Race Eco Chain Ltd?

Race Eco Chain Ltd Debt-to-Equity ratio is 1.08, which is above with the industry average of 0.29, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Race Eco Chain Ltd?

Race Eco Chain Ltd Debt to cash flow from operations is -2.06, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Race Eco Chain Ltd?

Promoters hold 44.79% of the Race Eco Chain Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Race Eco Chain Ltd vs industry peers?

Race Eco Chain Ltd revenue CAGR is 96.21%, compared to the industry median CAGR of 29.24%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	36	29.2
Gross Profit Growth	66.7	22.1
Operating Profit Growth	33.3	15.7
Net Profit Growth	100	26.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	4.04	0.84
ROE	9.86	13.91
ROCE	9.4	13.74
Cash Conversion Cycle (days)	45	74

Valuation & price assessment

Q.1 Stock return of Race Eco Chain Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 27.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	27.8%	-11.7%	-19.6%	-50.2%

Q.3 Valuation ratios of Race Eco Chain Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	78.47	341.09	31.76
Price to Book	4.02	17.70	4.86
Price to Sales	0.52	2.03	3.24
EV to EBITDA	23.99	145.71	17.79

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