Race Eco Chain Ltd. (RACE) AI Stock Analysis

• Market Cap: ₹3.63B
• Dividend Yield: N/A
• Average Volume (3M): 942.00
• Price to Earnings (P/E): 48.8
• Beta (1Y): 1.52
• Revenue Growth: 90.55%
• EPS Growth: 20.25%
• Country: IN
• Employees: 45
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Manufacturing - Textiles
• EPS (TTM): 1.62
• Shares Outstanding: 17,257,200
• 10 Day Avg. Volume: 802
• 30 Day Avg. Volume: 942
• PEG Ratio: 0.62
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 0.71
• P/FCF Ratio: -7.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹157.00 ▼(-0.29% Downside)

Race Eco Chain Ltd. faces significant challenges with cash flow management and bearish technical indicators, which weigh heavily on the stock's outlook. While revenue growth and profitability improvements are positive, the high P/E ratio and lack of dividend yield suggest potential overvaluation. Investors should be cautious given the current market momentum and financial risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.

Profitability Improvements

Improved profitability margins suggest better cost management and operational efficiency, enhancing long-term financial health.

Equity Position

A stronger equity position enhances financial stability and reduces reliance on debt, supporting sustainable growth.

Negative Factors

Cash Flow Challenges

Negative cash flows highlight inefficiencies in cash management, potentially impacting the company's ability to fund operations and growth.

Debt Reliance

Increased debt reliance can strain financial flexibility and increase risk, potentially affecting long-term stability if not managed well.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which may hinder the company's ability to reinvest and grow sustainably.

Race Eco Chain Ltd. Business Overview & Revenue Model

Company Description

Race Eco Chain Ltd. engages in trading and marketing of fabrics and yarns. Its product range includes fabrics for bedding, window dressing, decorative, pillows and accents, table linen, kitchen linen, and other home furnishing fabrics. The company operates under the following segments: Miscellaneous Old Economy Products, Recycle Division, and Restore Division. The company was founded on November 22, 1999 and is headquartered in Ghaziabad, India.

How the Company Makes Money

Race Eco Chain Ltd. generates revenue through multiple streams, primarily from the sale of its eco-friendly automotive components to original equipment manufacturers (OEMs) and aftermarket suppliers. The company capitalizes on its partnerships with key players in the automotive industry to secure long-term contracts and collaborations for research and development projects. Additionally, RACE earns income through licensing its proprietary technologies and software solutions, providing consulting services for sustainability initiatives, and participating in joint ventures aimed at creating innovative products. The growing demand for environmentally friendly transportation solutions and increased regulatory pressures for emissions reductions significantly contribute to the company's earnings potential.

Race Eco Chain Ltd. Financial Statement Overview

Summary

Race Eco Chain Ltd. shows strong revenue growth and improved profitability metrics, but faces significant challenges in cash flow management. The balance sheet indicates moderate leverage and improving equity positions, although increasing debt reliance poses potential risks.

Income Statement

Race Eco Chain Ltd. demonstrates strong revenue growth with significant year-over-year increases, notably a 59.7% increase from 2024 to 2025. Gross Profit Margin and Net Profit Margin have improved steadily, indicating enhanced operational efficiency. EBIT and EBITDA margins have also improved, suggesting better cost management. However, the net profit margin remains relatively low, indicating room for profitability improvement.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging debt. However, equity ratio improvements suggest strengthening financial stability. Return on Equity (ROE) shows a positive trend, but the company's reliance on debt financing has increased over the years, which could pose a risk if not managed carefully.

Cash Flow

Race Eco Chain Ltd. faces challenges with negative operating and free cash flows, indicating cash management issues. The free cash flow growth rate is negative, suggesting difficulties in generating sufficient cash to cover expenses and investments. The Operating Cash Flow to Net Income ratio is concerning, highlighting inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.25B	5.55B	3.47B	2.69B	1.57B	587.16M
Gross Profit	164.91M	113.99M	101.70M	64.39M	47.38M	32.35M
EBITDA	166.00M	105.95M	63.06M	29.40M	18.07M	23.41M
Net Income	74.41M	38.93M	15.49M	13.05M	9.17M	9.96M
Balance Sheet
Total Assets	0.00	1.82B	829.61M	491.80M	336.65M	321.80M
Cash, Cash Equivalents and Short-Term Investments	57.08M	57.08M	4.35M	32.72M	10.96M	41.30M
Total Debt	0.00	616.13M	425.17M	155.10M	50.92M	66.66M
Total Liabilities	-779.31M	1.04B	607.24M	286.10M	143.98M	140.65M
Stockholders Equity	779.31M	715.75M	222.11M	205.70M	192.67M	181.15M
Cash Flow
Free Cash Flow	0.00	-550.50M	-175.70M	-153.07M	9.16M	-53.30M
Operating Cash Flow	0.00	-461.86M	-85.28M	-145.87M	47.24M	-50.99M
Investing Cash Flow	0.00	-134.04M	-182.06M	66.47M	-57.57M	97.58M
Financing Cash Flow	0.00	610.99M	240.72M	99.41M	-19.91M	-7.07M

Race Eco Chain Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RACE, the sentiment is Negative. The current price of 157.45 is below the 20-day moving average (MA) of 174.87, below the 50-day MA of 203.87, and below the 200-day MA of 241.21, indicating a bearish trend. The MACD of -15.00 indicates Positive momentum. The RSI at 23.45 is Positive, neither overbought nor oversold. The STOCH value of 21.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RACE.

Race Eco Chain Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REMSONSIND	65 Neutral	₹5.13B	33.54	―	0.25%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RACE	48 Neutral	₹3.63B	48.78	―	―	90.55%	20.25%
SHIVAMAUTO	45 Neutral	₹3.96B	-6.94	―	―	-11.18%	-22.17%

Race Eco Chain Ltd. Corporate Events

Race Eco Chain Ltd. Releases Financial Results for Q2 and Half-Year 2025

Race Eco Chain Limited has released its investor presentation detailing the financial results for the quarter and half-year ending September 30, 2025. This announcement complies with the SEBI regulations and is intended to inform stakeholders about the company’s financial performance during this period.