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INVESTMENT INSIGHTS

Check Before You Invest : RACL Geartech Ltd

BSE: 520073 NSE: RACLGEAR ISIN: INE704B01017
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does RACL Geartech Ltd belong to?
RACL Geartech Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is RACL Geartech Ltd a good quality company?
RACL Geartech Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is RACL Geartech Ltd undervalued or overvalued?
RACL Geartech Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is RACL Geartech Ltd a good buy now?
RACL Geartech 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 RACL Geartech Ltd?
RACL Geartech Ltd revenue growth is 0% for FY-2025 , which is below its 5 year CAGR of 14.5% , indicating slower growth.
Q.2 Gross Profit margin of RACL Geartech Ltd?
RACL Geartech Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.4% for FY-2025 , which is below its 5 year median of 18.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of RACL Geartech Ltd?
RACL Geartech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.07% for FY-2025 , which is below its 5 year median of 22.76% indicating decreasing margins.
Q.4 Net Profit Margin of RACL Geartech Ltd?
RACL Geartech Ltd Net Profit Margin is 6.13% for FY-2025 , is below with its 5 year median of 9.54%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 15.4 18.8
Operating Profit Margin 20.07 22.76
Net Profit Margin 6.13 9.54
Q.5 Return on Asset of RACL Geartech Ltd?
RACL Geartech Ltd Return on Asset is 4.16%, which is below its 5 year historical median of 7.61%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of RACL Geartech Ltd?
RACL Geartech Ltd Return on equity is 11.82% for FY-2025 , which is below its historical median of 21.38%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RACL Geartech Ltd?
RACL Geartech Ltd Return on capital employed is 12.6% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of RACL Geartech Ltd?
RACL Geartech Ltd Cash conversion cycle is 171 days, above its historical median of 120 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.68 0.81
ROE 11.82 21.38
ROCE 12.6 18.03
Cash Conversion Cycle 171 days 120 days
Q.9 Debt to Equity ratio of RACL Geartech Ltd?
RACL Geartech Ltd Debt-to-Equity ratio is 1.30 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of RACL Geartech Ltd?
RACL Geartech Ltd Debt to cash flow from operations is 4.63 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RACL Geartech Ltd?
Promoters hold 42.68% of the RACL Geartech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RACL Geartech Ltd vs industry peers?
RACL Geartech Ltd revenue CAGR is 14.47% , compared to the industry median CAGR of 11.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 417.4 492.3
Gross Profit 64.2 44.4
Operating Profit 84 47
Net Profit 26 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.68 1.23
ROE 11.82 11.57
ROCE 12.6 13.36
Cash Conversion Cycle (days) 171.43 47

Valuation & price assessment

Q.1 Stock return of RACL Geartech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 45.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 45.7% 43.1% 16.4% 70.8%
Q.3 Valuation ratios of RACL Geartech Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 39.13 7.25 39.31
Price to Book 4.77 1.28 2.88
Price to Sales 3.63 0.61 1.29
EV to EBITDA 16.18 5.27 11.85

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