Is RACL Geartech overvalued or undervalued?

Nov 14 2025 08:08 AM IST
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As of November 13, 2025, RACL Geartech is considered overvalued with a PE ratio of 45.73, significantly higher than its peers, indicating a shift to an expensive valuation grade despite a strong year-to-date return of 23.01% compared to the Sensex's 8.11%.
As of 13 November 2025, RACL Geartech's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued, with a PE ratio of 45.73, a Price to Book Value of 5.62, and an EV to EBITDA of 19.44. These ratios suggest that the stock is trading at a significant premium compared to its earnings and book value.

In comparison to its peers, RACL Geartech's PE ratio is notably higher than Samvardhana Motherson, which has a PE of 33.73 and is rated attractive, and Bosch, which is rated fair with a PE of 48.43. This disparity highlights the overvaluation of RACL Geartech within its sector. Additionally, while the company has performed well with a year-to-date return of 23.01%, this is juxtaposed against a Sensex return of 8.11%, reinforcing the notion that the stock may be overextended in its current valuation.
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