ScoreWhy is RACL Geartech Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.27 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.27 times
2
Poor long term growth as Operating profit has grown by an annual rate 15.23% of over the last 5 years
3
The company has declared Positive results for the last 3 consecutive quarters
- PAT(Latest six months) At Rs 28.81 cr has Grown at 120.92%
- NET SALES(Latest six months) At Rs 268.98 cr has Grown at 34.44%
- ROCE(HY) Highest at 15.77%
4
With ROCE of 12.2, it has a Expensive valuation with a 3 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 34.15%, its profits have risen by 107% ; the PEG ratio of the company is 0.3
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 1.06% over the previous quarter and collectively hold 12.76% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
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
34.15%
0.59
57.68%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.20%
EBIT Growth (5y)
15.23%
EBIT to Interest (avg)
2.76
Debt to EBITDA (avg)
2.90
Net Debt to Equity (avg)
0.63
Sales to Capital Employed (avg)
0.86
Tax Ratio
25.53%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
12.76%
ROCE (avg)
13.63%
ROE (avg)
16.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
35
Price to Book Value
4.29
EV to EBIT
24.64
EV to EBITDA
16.68
EV to Capital Employed
3.02
EV to Sales
3.53
PEG Ratio
0.34
Dividend Yield
0.10%
ROCE (Latest)
12.24%
ROE (Latest)
13.94%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
PAT(Latest six months)
At Rs 28.81 cr has Grown at 120.92%
NET SALES(Latest six months)
At Rs 268.98 cr has Grown at 34.44%
ROCE(HY)
Highest at 15.77%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 13.97 cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.67 times
PBT LESS OI(Q)
At Rs 12.11 cr has Grown at 37.4% (vs previous 4Q average
-3What is not working for the Company
INTEREST(Q)
Highest at Rs 8.51 cr
Loading Valuation Snapshot...
Here's what is working for RACL Geartech
Profit After Tax (PAT) - Latest six months
At Rs 28.81 cr has Grown at 120.92%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 268.98 cr has Grown at 34.44%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 12.11 cr has Grown at 37.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 8.82 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 13.97 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 0.67 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
Interest - Quarterly
At Rs 8.51 cr has Grown at 60.57%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 8.51 cr
in the last five quarters and Increased by 60.57 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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