Check Before You Invest : Race Eco Chain Ltd

Q: 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: Is Race Eco Chain Ltd a good quality company?

Race Eco Chain Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Race Eco Chain Ltd undervalued or overvalued?

Race Eco Chain Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 77.21, Historic Median: 339.97. Price to Book, Current: 3.96, Historic Median: 17.58. Price to Sales, Current: 0.51, Historic Median: 2.02. EV to EBITDA, Current: 23.69, Historic Median: 145.18

Q: Is Race Eco Chain Ltd a good buy now?

Race Eco Chain Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: 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: 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: 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: Net Profit Margin of Race Eco Chain Ltd?

Race Eco Chain Ltd Net Profit Margin is 0.82% for FY-2025, is above its 5-year median of 0.58%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1.2, Historic Median: 1. Operating Profit Margin (%), Current: 1.83, Historic Median: 0.78. Net Profit Margin (%), Current: 0.82, Historic Median: 0.58

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

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

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

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	77.21	339.97
Price to Book	3.96	17.58
Price to Sales	0.51	2.02
EV to EBITDA	23.69	145.18

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

Race Eco Chain Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of Race Eco Chain Ltd?

Race Eco Chain Ltd Net Profit Margin is 0.82% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	4.04	4.8
ROE (%)	9.86	6.55
ROCE (%)	9.4	8.66
Cash Conversion Cycle	45 days	36 days

C: How much debt does the business have and is it at a sustainable level?

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 the industry average of 0.26, 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

D: Promoter shareholding and pledge status of Race Eco Chain Ltd?

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)

E: How does Race Eco Chain Ltd performance compare with that of its Peers?

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 4.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	36	4
Gross Profit Growth (%)	66.7	27
Operating Profit Growth (%)	33.3	13.1
Net Profit Growth (%)	100	28.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	4.04	0.84
ROE (%)	9.86	13.91
ROCE (%)	9.4	13.74
Cash Conversion Cycle (days)	45	71

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 27.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	27.5%	-11.4%	-20%	-53.4%

Q.2 Valuation ratios of Race Eco Chain Ltd vs historical?

The current P/E ratio of 77.21 is lower than its historical median of 339.97, indicating that the stock is trading below its historical average valuation.

Q.3 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	77.21	339.97	31.72
Price to Book	3.96	17.58	4.85
Price to Sales	0.51	2.02	2.84
EV to EBITDA	23.69	145.18	17.87

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Check Before You Invest : Race Eco Chain Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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