RACL Geartech

NSE: RACLGEAR · Auto Components & Equipments

52W Range₹909 ₹1,928

Snapshot

Unlock RACL Geartech's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

RACL Geartech Limited is an Indian manufacturer specialising in high-precision automotive components, including gears, shafts, and assemblies for diverse vehicle segments. The company serves original equipment manufacturers (OEMs) and tier-1 suppliers across two-wheelers, commercial vehicles, agriculture machinery, and e-mobility sectors.

Business Model

The company operates as a B2B supplier, generating revenue through the design, manufacture, and supply of critical transmission and engine components to global automotive OEMs. It leverages long-term supply contracts and technical expertise to maintain its position within the automotive supply chain.

Growth Outlook

Growth is driven by the expansion of the company's e-mobility component portfolio and increasing demand for high-precision gears in the global agriculture and commercial vehicle markets. The company continues to leverage its international footprint to capture demand from major automotive hubs worldwide.

Key Risks

  • Cyclical Automotive Demand. The company's financial performance is highly sensitive to the cyclical nature of the global automotive industry and OEM production schedules.
  • Raw Material Price Volatility. Fluctuations in the prices of steel and other raw materials can significantly impact manufacturing margins if costs cannot be fully passed on to customers.
  • Technological Disruption. The rapid transition toward electric vehicles necessitates continuous investment in new component technologies to remain relevant to evolving powertrain requirements.
  • Geopolitical and Currency Risk. As a company with a significant international export footprint, it is exposed to foreign exchange volatility and potential trade barriers in its key global markets.

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Key Metrics

REVENUE

₹522 Cr

TTM · consolidated

+28.2%YoY

NET PROFIT

₹50 Cr

TTM · consolidated

+78.1%YoY

EPS

₹42.81

TTM · consolidated

+70.0%YoY

RETURN ON EQUITY

17.1%

TTM · consolidated

+4.8 ppYoY

RETURN ON CAPITAL EMPLOYED

24.4%

TTM · consolidated

+4.8 ppYoY

P/E

36.8x

Q1 FY27 · consolidated

36.8 vs 52.2x5Y avg

EV/EBITDA

15.8x

Q1 FY27 · consolidated

15.8 vs 22.5x5Y avg

EBITDA MARGIN

25.2%

TTM · consolidated

+0.9 ppYoY

NET PROFIT MARGIN

6.7%

Q1 FY27 · consolidated

-1.5 ppYoY

DEBT TO EQUITY

0.6x

Q1 FY27 · consolidated

-0.69xYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
RACL GeartechRACLGEAR
₹1,858 Cr36.8215.7828.2%25.2%17.1%24.4%+67.8%
Sar Auto Products LimitedSAPL
₹2,033 Cr2188.15715.59-38.0%23.0%5.5%4.2%+108.1%
Menon BearingsMENONBE
₹1,801 Cr40.9925.0428.0%23.0%25.5%31.7%+158.5%
Rico Auto Industries LimitedRICOAUTO
₹1,765 Cr57.2211.4221.4%8.0%4.3%8.5%+30.2%
Ndr Auto Components LimitedNDRAUTO
₹1,721 Cr26.5117.1118.2%11.6%19.7%20.4%-30.5%
Studds Accessories LimitedSTUDDS
₹1,669 Cr22.3412.9918.9%14.3%18.3%

As of Q1 FY27

Financials