Stock Price Movement and Market Context
On 3 December 2025, Race Eco Chain’s share price touched Rs.151.85, the lowest level recorded in the past 52 weeks. Despite this, the stock showed some resilience by gaining after two consecutive days of decline, reaching an intraday high of Rs.159.45, which represents a 3.98% increase from the low. The stock outperformed its sector by 1.82% on the day, yet it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend.
The broader market, represented by the Sensex, opened flat and traded marginally lower by 0.04%, standing at 85,106.81 points. The Sensex remains close to its 52-week high of 86,159.02, trading 1.24% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages. This contrast highlights the underperformance of Race Eco Chain relative to the overall market.
Performance Over the Past Year
Race Eco Chain’s stock has experienced a substantial decline of 58.19% over the last 12 months. This contrasts sharply with the Sensex’s positive return of 5.27% during the same period. The stock’s 52-week high was Rs.386.80, underscoring the extent of the price contraction. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Financial Metrics Highlighting Current Concerns
Several financial indicators illustrate the challenges faced by Race Eco Chain. The company’s average Return on Capital Employed (ROCE) stands at 7.85%, reflecting modest profitability relative to the total capital invested. This figure suggests limited efficiency in generating returns from both equity and debt financing.
Additionally, the company’s ability to service its debt is constrained, with an average EBIT to Interest ratio of 1.90. This ratio indicates that earnings before interest and tax cover interest expenses by less than twice, signalling a relatively weak cushion for debt obligations.
The average Return on Equity (ROE) is recorded at 5.25%, pointing to subdued profitability on shareholders’ funds. These metrics collectively contribute to the subdued market valuation and the stock’s downward trajectory.
Operational and Growth Indicators
Despite the stock’s price decline, Race Eco Chain has demonstrated notable growth in certain operational areas. Net sales have expanded at an annual rate of 34.91%, while operating profit has grown by 71.41%. The company’s net profit has shown a significant rise of 126.03%, with positive results declared for five consecutive quarters, including the latest quarter ending September 2025.
Quarterly figures reveal a Profit Before Tax excluding other income (PBT LESS OI) of Rs.2.49 crores, which has grown at a rate of 271.64%. The half-year ROCE has reached a peak of 10.13%, and net sales for the quarter stood at Rs.148.43 crores, reflecting a growth rate of 39.65%.
Valuation metrics indicate a fair assessment, with a ROCE of 8.8 and an Enterprise Value to Capital Employed ratio of 2.4. The stock is trading at a discount compared to the average historical valuations of its peers. Over the past year, while the stock price has declined by 58.19%, profits have increased by 331.3%, resulting in a PEG ratio of 0.1.
Holding Race Eco Chain 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
Institutional Shareholding Trends
Institutional investors have increased their stake in Race Eco Chain by 0.72% over the previous quarter, collectively holding 1.3% of the company’s shares. This gradual increase in institutional participation reflects a measured interest from entities with greater analytical resources, although the overall shareholding remains modest.
Summary of Key Challenges and Market Position
The stock’s decline to Rs.151.85, its lowest in a year, is underpinned by subdued returns on capital and equity, alongside limited debt servicing capacity. While operational growth in sales and profits has been recorded, these improvements have not translated into positive price momentum. The stock remains below all major moving averages, signalling continued pressure in the near term.
In contrast, the broader market indices maintain a more positive trajectory, with the Sensex trading near its 52-week high and above key moving averages. This divergence highlights the specific challenges faced by Race Eco Chain within the Other Utilities sector.
Investors and market participants will continue to monitor the company’s financial performance and market behaviour as it navigates these conditions.
Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
