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RACL Geartech Ltd
(RACLGEAR)
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Rating:69Neutral
Price Target:
₹1,685.00
▲(28.97% Upside)
Action:Reiterated
Date:09/12/26
The score is driven primarily by strong operating performance and improving leverage, tempered by weak/uneven free-cash-flow conversion. Technically, the stock has strong trend and momentum (price above all key moving averages and positive MACD), though elevated RSI/Stoch suggest some near-term overheating risk. Valuation is a headwind due to a high P/E, partly offset by a very strong dividend yield.
Positive Factors
Strong Revenue and Earnings Growth
The substantial increase in revenue and net income indicates stronger business activity and earnings leverage. If sustained, this growth can improve operating scale, support reinvestment in precision manufacturing, and strengthen RACL Geartech’s position with automotive and industrial customers over the coming quarters.
Negative Factors
Weak Free-Cash-Flow Conversion
Thin and inconsistent free cash flow means reported earnings are not yet translating reliably into discretionary cash. That can constrain internally funded expansion, reduce flexibility for debt reduction, and leave the company more exposed to reinvestment or working-capital demands even as operating cash flow improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Earnings Growth
The substantial increase in revenue and net income indicates stronger business activity and earnings leverage. If sustained, this growth can improve operating scale, support reinvestment in precision manufacturing, and strengthen RACL Geartech’s position with automotive and industrial customers over the coming quarters.
Read all positive factors
RACL Geartech Ltd (RACLGEAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹18.17B
Dividend Yield0.1%
Average Volume (3M)4.53K
Price to Earnings (P/E)35.9
Beta (1Y)0.77
Revenue Growth28.21%
EPS Growth65.76%
CountryIN
Employees752
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)16.51
Shares Outstanding11,788,080
10 Day Avg. Volume3,343
30 Day Avg. Volume4,530
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)3.96
Price to Sales (P/S)2.85
P/FCF Ratio154.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RACL Geartech Ltd Business Overview & Revenue Model
Company Description
RACL Geartech Ltd. specializes in the production and global distribution of a wide array of automotive components. The company's extensive product portfolio caters to diverse vehicle categories, supplying various gears, shafts, and specialized ass...
How the Company Makes Money
RACL Geartech makes money primarily by manufacturing and selling gear and transmission-related components to business customers (B2B). Its core revenue stream is the sale of precision gears and associated driveline/transmission parts produced in i...
RACL Geartech Ltd Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 1.74B | 4.90B | 3.82B |
| Gross Profit | 251.36M | 2.59B | 1.63B |
| EBITDA | 514.44M | 1.29B | 899.04M |
| Net Income | 185.53M | 489.50M | 237.43M |
Balance Sheet | |||
| Total Assets | 6.50B | 7.01B | 6.37B |
| Cash, Cash Equivalents and Short-Term Investments | 57.84M | 139.50M | 23.35M |
| Total Debt | 2.35B | 2.36B | 3.14B |
| Total Liabilities | 3.25B | 3.49B | 4.11B |
| Stockholders Equity | 3.25B | 3.52B | 2.27B |
Cash Flow | |||
| Free Cash Flow | 393.54M | 90.30M | -201.00M |
| Operating Cash Flow | 791.26M | 621.70M | 277.28M |
| Investing Cash Flow | -381.17M | -525.80M | -459.69M |
| Financing Cash Flow | -384.83M | -38.40M | 186.88M |
RACL Geartech Ltd Technical Analysis
Neutral
1306.50
Price Trends
1513.75
Positive
1411.76
Positive
1310.02
Positive
Market Momentum
23.51
Positive
42.60
Neutral
9.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RACLGEAR, the sentiment is Neutral. The current price of 1306.5 is below the 20-day moving average (MA) of 1664.72, below the 50-day MA of 1513.75, and below the 200-day MA of 1310.02, indicating a neutral trend. The MACD of 23.51 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RACLGEAR.
RACL Geartech Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹24.98B | 18.83 | ― | 0.52% | 8.11% | 29.23% | |
69 Neutral | ₹18.17B | 35.92 | ― | 0.10% | 28.21% | 65.76% | |
56 Neutral | ₹1.52B | 10.23 | ― | 1.01% | 24.00% | 125.67% | |
56 Neutral | ₹10.47B | 25.87 | ― | 0.91% | -4.88% | -33.32% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹11.16B | 58.23 | ― | 0.67% | 5.52% | -38.64% | |
49 Neutral | ₹16.47B | 53.07 | ― | 0.45% | 21.35% | -4.52% |
* General Sector Average
IN:RACLGEAR
RACL Geartech Ltd
1,541.15
301.93
24.36%
IN:BHARATGEAR
Bharat Gears Limited
99.00
-35.67
-26.49%
IN:GNA
GNA Axles Ltd
581.80
271.03
87.21%
IN:HITECHGEAR
Hi-Tech Gears Limited
593.25
-156.53
-20.88%
IN:PRECAM
Precision Camshafts Ltd.
110.20
-91.36
-45.33%
IN:RICOAUTO
Rico Auto Industries Limited
121.75
28.69
30.83%
RACL Geartech Ltd Corporate Events
RACL Geartech Conducts 43rd AGM via Video Conferencing
Sep 14, 2026
RACL Geartech Ltd held its 43rd Annual General Meeting on September 14, 2026, using video conferencing and other audio-visual means, with the meeting formally commencing at 11:30 a.m. India Standard Time. The company reported that its full board o...
RACL Geartech says share surge driven by market forces, no undisclosed events
Aug 26, 2026
RACL Geartech Ltd has responded to queries from the National Stock Exchange of India and BSE regarding a significant increase in trading volume in its shares. The company stated that there is currently no undisclosed material event or information ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.