Is RACL Geartech overvalued or undervalued?

As of 10 November 2025, RACL Geartech's valuation grade has moved from expensive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 41.60, an EV to EBITDA of 18.03, and a ROE of 10.47%. In comparison to its peers, Samvardh. Mothe. has a more attractive PE ratio of 31.75, while Bosch is considered expensive with a PE of 49.35.
RACL Geartech's financial metrics suggest it is positioned reasonably within its industry, particularly when compared to peers like Endurance Tech, which also holds a fair valuation but has a higher PE ratio of 46.59. Despite recent stock performance lagging behind the Sensex over the past month, the company's strong historical returns, including a 65.39% increase over three years, reinforce its potential for future growth.