Race Eco Chain Ltd. (RACE) AI Stock Analysis

• Market Cap: ₹1.76B
• Dividend Yield: N/A
• Average Volume (3M): 942.00
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.30
• 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: 52 Neutral
• Price Target: ₹112.00 ▼(-20.11% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by solid revenue growth and improving margins, but is constrained by weak cash flow quality (negative operating/free cash flow). Technicals add pressure given the clear downtrend and negative MACD, while valuation is also a headwind due to a high P/E and no dividend yield.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth and a 59.7% YoY jump indicate expanding product demand and market penetration. Over 2–6 months this supports stronger scale economics, deepening customer relationships and provides a larger base to leverage fixed costs and invest in growth initiatives.

Improving Margins

Consistent improvement across gross, EBIT and EBITDA margins signals better cost control and operational efficiency. Durable margin expansion increases profit resiliency versus cyclical textile demand and creates capacity to fund reinvestment or absorb input-cost shocks over the medium term.

Strengthening Equity Position

An improving equity ratio alongside moderate leverage suggests gradual balance sheet strengthening. This bolsters financial flexibility for capital spending or securing financing, reducing insolvency risk and supporting longer-term strategic options despite cyclical industry pressures.

Negative Factors

Negative Cash Flows

Persistent negative operating and free cash flows indicate the business struggles to convert earnings into cash. Over a multi-month horizon this limits self-funding for capex, debt servicing and working capital, increasing reliance on external financing and raising liquidity and execution risk.

Rising Debt Reliance

An increasing dependence on debt raises interest and refinancing exposure. If cash generation remains weak, higher leverage can constrain strategic flexibility, elevate default risk in stress scenarios, and magnify earnings volatility from interest cost changes over the medium term.

Low Net Profitability

Although margins are improving, a low absolute net profit margin limits retained earnings and the ability to build cash reserves. This weakens the firm's capacity to fund growth internally, pay dividends, or weather demand downturns without increasing leverage or diluting shareholders.

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. Financial Statement Overview

Summary

Strong revenue growth and improving operating/profit margins support the score, but it is meaningfully held back by negative operating and free cash flow and weak cash conversion. Balance sheet leverage is moderate with improving equity, though rising debt reliance adds risk.

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	6.68B	5.55B	3.47B	2.69B	1.57B	587.16M
Gross Profit	187.76M	113.99M	101.70M	64.39M	47.38M	32.35M
EBITDA	157.22M	105.95M	63.06M	29.40M	18.07M	23.41M
Net Income	62.02M	38.93M	15.49M	13.05M	9.17M	9.96M
Balance Sheet
Total Assets	2.02B	1.82B	829.61M	491.80M	336.65M	321.80M
Cash, Cash Equivalents and Short-Term Investments	104.60M	57.08M	4.35M	32.72M	10.96M	41.30M
Total Debt	713.00M	616.13M	425.17M	155.10M	50.92M	66.66M
Total Liabilities	1.17B	1.04B	607.24M	286.10M	143.98M	140.65M
Stockholders Equity	728.64M	715.75M	222.11M	205.70M	192.67M	181.15M
Cash Flow
Free Cash Flow	-19.58M	-550.50M	-175.70M	-153.07M	9.16M	-53.30M
Operating Cash Flow	33.37M	-461.86M	-85.28M	-145.87M	47.24M	-50.99M
Investing Cash Flow	-46.12M	-134.04M	-182.06M	66.47M	-57.57M	97.58M
Financing Cash Flow	60.54M	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: Positive
• 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 114.28, above the 50-day MA of 116.32, and below the 200-day MA of 191.49, indicating a bearish trend. The MACD of -2.46 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.97 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	₹3.64B	12.72	―	1.64%	―	―
MUNJALSHOW	66 Neutral	₹4.80B	11.32	―	3.69%	―	―
REMSONSIND	65 Neutral	₹3.23B	20.06	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RACE	52 Neutral	₹1.76B	34.59	―	―	90.55%	20.25%
SHIVAMAUTO	45 Neutral	₹2.05B	-3.18	―	―	-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.