Stock Performance and Market Context
On the day the new low was hit, Race Eco Chain Ltd’s stock price fell sharply by 5.62%, underperforming its sector which declined by 3.15%. The stock touched an intraday low of Rs.101.8, representing a 12.66% drop within the session. This decline extends a losing streak, with the stock falling for two consecutive days and delivering a cumulative return of -11.86% over this period.
The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. In contrast, the broader Sensex index, despite a sharp fall of 1.28% on the same day, remains 4.84% below its 52-week high of 86,159.02. However, the Sensex itself has been on a three-week losing streak, down 4.18%, reflecting a cautious market environment.
Race Eco Chain Ltd’s 52-week high was Rs.354.85, highlighting the steep decline of 71.3% from that peak to the current low. Over the past year, the stock has delivered a negative return of -67.74%, significantly underperforming the Sensex’s positive 6.63% gain over the same period.
Financial Metrics and Profitability Concerns
Several financial indicators point to challenges in the company’s profitability and capital efficiency. The average Return on Capital Employed (ROCE) stands at a modest 7.85%, indicating limited profitability generated per unit of total capital invested. Similarly, the average Return on Equity (ROE) is low at 5.25%, reflecting subdued returns for shareholders.
The company’s ability to service its debt is also constrained, with an average EBIT to Interest ratio of 1.90. This ratio suggests limited cushion to cover interest expenses, which could weigh on financial flexibility.
These factors have contributed to a downgrade in the company’s Mojo Grade from Hold to Sell as of 6 Jan 2026, with a current Mojo Score of 48.0. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation compared to peers.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Growth Trends and Recent Results
Despite the stock’s price weakness, Race Eco Chain Ltd has demonstrated robust growth in its core business metrics. Net sales have expanded at an annual rate of 34.91%, while operating profit has surged by 71.41%. The company reported a net profit growth of 126.03% in the most recent results declared in September 2025, marking the fifth consecutive quarter of positive earnings.
Quarterly figures reveal net sales of Rs.148.43 crore, growing 39.65% year-on-year, and a highest-ever PBDIT of Rs.3.67 crore. The half-yearly ROCE improved to 10.13%, indicating some enhancement in capital efficiency in the near term.
Valuation metrics suggest the stock is trading at an attractive level relative to its capital employed, with an enterprise value to capital employed ratio of 2. The company’s PEG ratio stands at 0.1, reflecting a low price-to-earnings growth multiple, which may indicate undervaluation compared to earnings growth.
Shareholding and Sectoral Position
The majority of Race Eco Chain Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company operates within the Other Utilities sector, which itself has experienced a decline of 3.15% on the day the stock hit its 52-week low.
Sectoral performance has been mixed, with the broader market showing signs of volatility. The Sensex’s recent weakness and the stock’s underperformance relative to both the sector and benchmark indices underscore the challenges faced by Race Eco Chain Ltd in regaining investor confidence.
Holding Race Eco Chain Ltd from Other Utilities? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, Race Eco Chain Ltd’s stock has reached a new 52-week low of Rs.101.8, reflecting a significant decline of over 70% from its 52-week high of Rs.354.85. The stock’s recent performance has been weak, with losses over the past year and underperformance relative to the Sensex and its sector.
Financially, the company exhibits modest returns on capital and equity, alongside a constrained ability to cover interest expenses. However, it has delivered consistent growth in sales and profits over recent quarters, with positive earnings trends and improving ROCE in the half-year period.
Market conditions remain challenging, with the broader index also experiencing declines. The stock’s valuation metrics suggest it is trading at a discount relative to its peers, though this has not translated into price stability.
Investors and market participants will continue to monitor the company’s financial performance and sector dynamics as Race Eco Chain Ltd navigates this period of price weakness.
Unlock special upgrade rates for a limited period. Start Saving Now →
