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
- 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
4
Stock is technically in a Mildly Bullish range
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
5
With ROCE of 9.8, it has a Expensive valuation with a 3.4 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 46.61%, its profits have risen by 68.1% ; the PEG ratio of the company is 0.7
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
46.62%
0.77
60.73%
Sensex
-1.65%
-0.49
12.94%
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
12.49%
ROCE (avg)
13.63%
ROE (avg)
16.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
39
Price to Book Value
4.62
EV to EBIT
22.49
EV to EBITDA
15.83
EV to Capital Employed
3.22
EV to Sales
3.55
PEG Ratio
0.42
Dividend Yield
0.09%
ROCE (Latest)
12.24%
ROE (Latest)
13.94%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
NET SALES(Latest six months)
At Rs 264.01 cr has Grown at 40.48%
PAT(Latest six months)
At Rs 21.42 cr has Grown at 45.11%
ROCE(HY)
Highest at 15.77%
PBT LESS OI(Q)
At Rs 16.57 cr has Grown at 52.4% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 13.97 cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.67 times
PBDIT(Q)
Highest at Rs 31.94 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 24.13%
-6What is not working for the Company
PAT(Q)
At Rs 8.90 cr has Fallen at -27.5% (vs previous 4Q average
INTEREST(Latest six months)
At Rs 14.68 cr has Grown at 36.43%
EPS(Q)
Lowest at Rs 7.29
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Here's what is working for RACL Geartech
Net Sales - Latest six months
At Rs 264.01 cr has Grown at 40.48%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 16.57 cr has Grown at 52.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 10.87 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 31.94 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 24.13%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
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
Profit After Tax (PAT) - Quarterly
At Rs 8.90 cr has Fallen at -27.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 12.28 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 14.68 cr has Grown at 36.43%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 7.29
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
