ScoreWhy is RACL Geartech Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.86 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.86 times
2
Poor long term growth as Operating profit has grown by an annual rate 14.86% of over the last 5 years
3
With a growth in Net Profit of 35.19%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 2 consecutive quarters
- PBT LESS OI(Q) At Rs 17.52 cr has Grown at 163.3% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.91 times
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 5.78 cr
4
With ROCE of 9.8, it has a Expensive valuation with a 2.9 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 63.40%, its profits have risen by 68.1% ; the PEG ratio of the company is 0.6
5
Despite the size of the company, domestic mutual funds hold only 1.09% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to RACL Geartech should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is RACL Geartech for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
RACL Geartech
65.45%
1.07
59.46%
Sensex
-1.88%
-0.14
12.70%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.34%
EBIT Growth (5y)
14.86%
EBIT to Interest (avg)
2.92
Debt to EBITDA (avg)
2.88
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
0.87
Tax Ratio
25.24%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
11.70%
ROCE (avg)
14.00%
ROE (avg)
17.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
33
Price to Book Value
4.30
EV to EBIT
26.72
EV to EBITDA
17.38
EV to Capital Employed
2.93
EV to Sales
3.65
PEG Ratio
0.60
Dividend Yield
0.11%
ROCE (Latest)
9.79%
ROE (Latest)
10.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend29What is working for the Company
PBT LESS OI(Q)
At Rs 17.52 cr has Grown at 163.3% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.91 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 5.78 cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.72 times
NET SALES(Q)
Highest at Rs 137.32 cr
PBDIT(Q)
Highest at Rs 31.30 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 22.79%
PAT(Q)
Highest at Rs 16.29 cr.
EPS(Q)
Highest at Rs 15.11
-2What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.56 times
Loading Valuation Snapshot...
Here's what is working for RACL Geartech
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 17.52 cr has Grown at 163.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 6.66 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 16.29 cr has Grown at 95.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 8.34 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.91 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 137.32 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 137.32 cr has Grown at 30.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 105.26 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 31.30 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 22.79%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 17.52 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 16.29 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 15.11
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 5.78 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Lowest at 0.72 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for RACL Geartech
Inventory Turnover Ratio- Half Yearly
Lowest at 2.56 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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