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 15.73% of over the last 5 years
3
The company declared positive results in Sep'25 after flat results in Jun'25
- PBT LESS OI(Q) At Rs 10.63 cr has Grown at 111.4% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.47 times
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 5.78 cr
4
With ROCE of 9.8, it has a Fair valuation with a 2.6 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 17.77%, its profits have risen by 7.2%
5
Despite the size of the company, domestic mutual funds hold only 0.89% 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
17.77%
0.33
54.06%
Sensex
4.67%
0.39
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.24%
EBIT Growth (5y)
15.73%
EBIT to Interest (avg)
3.01
Debt to EBITDA (avg)
2.88
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
0.87
Tax Ratio
26.57%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
11.54%
ROCE (avg)
14.00%
ROE (avg)
17.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
39
Price to Book Value
3.75
EV to EBIT
26.69
EV to EBITDA
16.81
EV to Capital Employed
2.61
EV to Sales
3.44
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.79%
ROE (Latest)
10.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
PBT LESS OI(Q)
At Rs 10.63 cr has Grown at 111.4% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.47 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 120.31 cr
PBDIT(Q)
Highest at Rs 24.40 cr.
PAT(Q)
Highest at Rs 12.05 cr.
EPS(Q)
Highest at Rs 9.87
-5What is not working for the Company
DPR(Y)
Lowest at 0.00%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.56 times
NON-OPERATING INCOME(Q)
is 34.30 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for RACL Geartech
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.63 cr has Grown at 111.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 5.03 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 4.47 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
At Rs 12.05 cr has Grown at 73.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.96 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 120.31 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 24.40 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 10.63 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 12.05 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 9.87
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
Dividend Payout Ratio (DPR) - Annually
Lowest at 0.00% and Fallen
each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income - Quarterly
is 34.30 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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