Race Eco Chain Ltd. (RACE) AI Stock Analysis

• Market Cap: ₹1.90B
• Dividend Yield: N/A
• Average Volume (3M): 942.00
• Price to Earnings (P/E): 29.8
• Beta (1Y): 1.41
• Revenue Growth: 90.55%
• EPS Growth: 20.25%
• Country: IN
• Employees: 45
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Manufacturing - Textiles
• EPS (TTM): 1.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ₹117.00 ▼(-16.55% Downside)
• Action: Reiterated Date: 01/22/26
• Date: Action: Reiterated 01/22/26

The score is primarily driven by mixed financial performance: strong growth and improving margins are outweighed by negative operating/free cash flow and moderate leverage risk. Technical indicators add significant pressure due to pronounced downtrend and bearish momentum. Valuation is a modest headwind with a relatively high P/E and no dividend yield support.

Positive Factors

Revenue Growth

Sustained high top-line growth (59.7% YoY) indicates strong demand for the company’s products and provides scale tailwinds. Over a 2–6 month horizon this supports reinvestment capacity, distributor/customer expansion and gives management room to continue building durable revenue streams.

Margin Improvement

Consistent improvement in gross, EBITDA and net margins signals better cost control and possible pricing power. Margin expansion is a durable operational improvement that lowers breakeven, improves cash generation potential as volumes normalize, and supports long-term profitability.

Strengthening Equity Metrics

Improving equity ratios and rising ROE point to a strengthening balance sheet and more efficient capital use. This durable trend reduces solvency risk, improves access to external funding if needed, and enhances capacity to pursue strategic investments over months.

Negative Factors

Weak Cash Generation

Persistent negative operating and free cash flows constrain the company’s ability to self-fund operations and capex. Over the medium term this forces reliance on external financing, raises liquidity risk, and limits the practical benefit of revenue and margin gains until cash conversion improves.

Rising Leverage

An increasing reliance on debt elevates financial leverage and interest exposure. If cash conversion remains weak, higher leverage can strain flexibility, increase refinancing risk and make the company more vulnerable to cost or demand shocks over the next several months.

Low Net Profit Margin

Despite margin improvements, a relatively low net profit margin limits retained earnings and internal capital generation. This constrains long-term reinvestment and makes profitability sensitive to inflation or input-cost increases, requiring sustained efficiency gains to be durable.

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

Strong revenue growth and improving gross/EBITDA margins support the score, but it is held back by weak cash generation (negative operating and free cash flow) and only moderate balance-sheet strength with some increased reliance on debt.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 140.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 140.2 is above the 20-day moving average (MA) of 115.02, above the 50-day MA of 121.78, and below the 200-day MA of 198.49, indicating a bearish trend. The MACD of -1.02 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 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
MAZDA	68 Neutral	₹3.93B	14.80	―	1.64%	―	―
MUNJALSHOW	66 Neutral	₹5.27B	16.66	―	3.69%	―	―
REMSONSIND	65 Neutral	₹3.84B	22.30	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RACE	51 Neutral	₹1.90B	29.75	―	―	90.55%	20.25%
SHIVAMAUTO	47 Neutral	₹2.48B	-3.58	―	―	-11.18%	-22.17%

Race Eco Chain Ltd. Corporate Events

Race Eco Chain Ltd. Announces Strategic Restructuring and Board Changes

Race Eco Chain Ltd. announced the approval of a scheme of arrangement involving itself, GeoEco Green Energy Ltd., and Race Gateway Ltd., which will affect shareholders and creditors. Additionally, the company underwent several board changes, including the resignation of Mr. Anil Kumar Behl as an Independent Director and his re-designation as a Non-Executive Non-Independent Director. The Audit Committee was reconstituted with Mr. Sanjay Kukreja as the new Chairperson. Furthermore, the company’s corporate office will be relocated to Noida, Uttar Pradesh.

Race Eco Chain Ltd. Announces Strategic Corporate Changes

Race Eco Chain Ltd. announced the approval of a scheme of arrangement involving itself, GeoEco Green Energy Ltd., and Race Gateway Ltd., which will impact shareholders and creditors under the Companies Act and Income Tax Act provisions. Additionally, the company noted the resignation and role change of Mr. Anil Kumar Behl, reconstituted its Audit Committee with Mr. Sanjay Kukreja as the new chairperson, and shifted its corporate office to Noida, Uttar Pradesh.

Race Eco Chain Ltd. Announces Strategic Restructuring and Leadership Changes

Race Eco Chain Ltd. announced a significant restructuring involving a scheme of arrangement with GeoEco Green Energy Ltd. and Race Gateway Ltd., aiming to streamline operations and enhance strategic focus. Additionally, the company reported changes in its board of directors, including the resignation and re-designation of Mr. Anil Kumar Behl, and the appointment of Mr. Sanjay Kukreja as the new Chairperson of the Audit Committee, alongside the relocation of its corporate office.

Race Eco Chain Ltd. Announces Director Resignation

Race Eco Chain Limited has announced the resignation of Anil Kumar Behl as an Independent Director, effective December 13, 2025. The resignation is attributed to personal reasons, with no other material reasons cited. This change in the board composition is part of the company’s compliance with the Securities and Exchange Board of India regulations.