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Check Before You Invest : Race Eco Chain Ltd

BSE: 537785 NSE: RACE ISIN: INE084Q01012
  |   Sector:  Miscellaneous   |   Industry:  Environmental Services

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 quality company, based on a 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 96.2% , 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 with its 5 year median of 0.58%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 1.2 1
Operating Profit Margin 1.83 0.78
Net Profit Margin 0.82 0.58
Q.5 Return on Asset of Race Eco Chain Ltd?
Race Eco Chain Ltd Return on Asset is 3.3(x), which is above its 5 year historical median of 3.17(x), indicating improved asset utilization efficiency.
Q.6 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 historical median of 6.55%, indicating the business is making better use of its shareholders capital.
Q.7 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 below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Race Eco Chain Ltd?
Race Eco Chain Ltd Cash conversion cycle is 45 , above its historical median of 36 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 4.04 4.8
ROE 9.86 6.55
ROCE 9.4 8.66
Cash Conversion Cycle 45 36
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 0.26 , 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, indicating the business is not able to service its debt comfortably.

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 7.68% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 460.3 39.2
Gross Profit 5.5 6.5
Operating Profit 8 4
Net Profit 4 2.2
Operating Efficiency
Current Level Industry Median
Asset Turnover 4.04 0.84
ROE 9.86 13.91
ROCE 9.4 13.74
Cash Conversion Cycle 45 71

Valuation & price assessment

Q.1 Stock return of Race Eco Chain Ltd over the last decade?
Over the last 9 years, 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 27.8% -11.9% -12.2% -48.2%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 82.86 286.58 27.19
Price to Book 4.25 14.49 5.58
Price to Sales 0.55 1.67 2.70
EV to EBITDA 25.03 146.68 17.18

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