RACL Geartech Ltd Hits All-Time High at Rs 1560, Marking a Milestone in Auto Components Sector

Strong Momentum Drives New 52-Week High

The stock opened with a gap up of 4.77% and touched an intraday high of Rs.1560, marking an 8.16% rise during the trading session. This surge outperformed the sector by 7.06% and the broader Sensex, which declined by 0.27% on the same day. The stock has demonstrated notable volatility today, with an intraday volatility of 88.5%, calculated from the weighted average price, indicating active trading interest and dynamic price movement.

RACL Geartech has been on a winning streak, gaining for two consecutive days and delivering a remarkable 28.38% return during this period. The stock currently trades above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum and investor confidence in the near term.

Exceptional Long-Term Performance Against Benchmarks

Over the past year, RACL Geartech Ltd has generated a stellar return of 105.10%, vastly outperforming the Sensex’s 9.28% gain. The stock’s performance over longer horizons is equally impressive, with a 3-year return of 76.09% compared to the Sensex’s 36.14%, and a 5-year return of 489.57% versus the Sensex’s 60.63%. Over a decade, the company’s stock has appreciated by an extraordinary 5084.14%, dwarfing the Sensex’s 255.19% rise.

These figures underscore the company’s ability to deliver market-beating returns consistently, reflecting strong fundamentals and sustained growth in the auto components sector.

Financial Metrics Highlighting Strength

RACL Geartech’s recent financial disclosures reveal a net profit growth of 35.19%, with the company declaring very positive results in December 2025. The firm has reported positive earnings for two consecutive quarters, reinforcing its upward trajectory.

Key financial ratios further illustrate the company’s operational strength. The operating profit to interest ratio stands at a robust 5.91 times, the highest recorded, indicating strong earnings relative to interest expenses. Cash and cash equivalents have reached Rs.5.78 crores at the half-year mark, the highest level noted, providing liquidity comfort. Meanwhile, the debt-equity ratio remains low at 0.72 times, reflecting a conservative capital structure.

Market Capitalisation and Mojo Score

RACL Geartech holds a Market Cap Grade of 4, signalling a mid-sized market capitalisation with growth potential. The company’s Mojo Score has improved to 71.0, earning a Buy grade as of 23 Sep 2025, upgraded from a previous Hold rating. This upgrade reflects enhanced confidence in the company’s fundamentals and market positioning.

Comparative Performance and Valuation Insights

In addition to outperforming the BSE500 index over the last three months, one year, and three years, the company’s valuation metrics provide further context. Despite a return of 105.10% over the past year, profits have risen by 68.1%, resulting in a PEG ratio of 0.7. This suggests the stock is reasonably valued relative to its earnings growth.

The company’s return on capital employed (ROCE) stands at 9.8%, with an enterprise value to capital employed ratio of 3.5, indicating a relatively expensive valuation compared to peers. However, the stock currently trades at a discount relative to the average historical valuations of its sector counterparts.

Debt Servicing and Growth Considerations

While the company maintains a low debt-equity ratio, its debt to EBITDA ratio is relatively high at 2.86 times, indicating a moderate ability to service debt obligations. Over the past five years, operating profit has grown at an annual rate of 14.86%, which is modest compared to the stock’s price appreciation.

Domestic mutual funds hold a small stake of 1.09% in RACL Geartech, which may reflect cautious positioning despite the company’s strong performance and market presence.

Summary of Recent Price and Performance Trends

RACL Geartech’s recent price action has been characterised by strong gains across multiple timeframes. The stock’s one-week return stands at 29.24%, one-month at 47.54%, and three-month at 35.02%, all significantly outperforming the Sensex, which posted negative returns over these periods. Year-to-date, the stock has gained 32.62%, while the Sensex declined by 2.55%.

This consistent outperformance highlights the company’s resilience and ability to generate shareholder value in both short and long-term horizons.

Conclusion: A Milestone Reflecting Sustained Growth

RACL Geartech Ltd’s attainment of an all-time high price of Rs.1560 marks a significant milestone in its corporate journey. Supported by strong financial results, improved ratings, and consistent market-beating returns, the company has demonstrated robust performance within the Auto Components & Equipments sector. While certain valuation and debt metrics warrant attention, the overall trajectory reflects a firm with solid fundamentals and sustained growth over the years.

As the stock continues to trade above key moving averages and maintain positive momentum, this new peak price underscores the company’s established position in the market and its ability to deliver value to shareholders.

Unlock special upgrade rates for a limited period. Start Saving Now →