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RACL Geartech Ltd (IN:RACLGEAR)
:RACLGEAR
India Market
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RACL Geartech Ltd (RACLGEAR) AI Stock Analysis

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IN:RACLGEAR

RACL Geartech Ltd

(RACLGEAR)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
₹1,412.00
▲(1.01% Upside)
Action:N/A
Date:05/30/26
The score is driven primarily by improving fundamentals (stronger earnings and a better balance sheet) but held back by weak free-cash-flow conversion and a relatively high P/E. Technicals are supportive with the stock trading above major moving averages and a positive MACD, but momentum indicators are largely neutral.
Positive Factors
Revenue & Earnings Growth
Meaningful top-line growth and near-doubling of net income signal expanding commercial traction and operational leverage. Sustained revenue and earnings growth provides recurring cash generation potential, supports reinvestment in capacity, and underpins longer-term profitability.
Negative Factors
Weak Free Cash Flow Conversion
Persistently weak free cash flow despite stronger operating cash flow constrains internal funding for capex, dividends, and debt paydown. If FCF conversion remains inconsistent, the company may need external financing or delay investments, limiting strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Earnings Growth
Meaningful top-line growth and near-doubling of net income signal expanding commercial traction and operational leverage. Sustained revenue and earnings growth provides recurring cash generation potential, supports reinvestment in capacity, and underpins longer-term profitability.
Read all positive factors

RACL Geartech Ltd (RACLGEAR) vs. iShares MSCI India ETF (INDA)

RACL Geartech Ltd Business Overview & Revenue Model

Company Description
RACL Geartech Limited manufactures and sells automotive components. The company offers pin gear T49; actuator shaft; assy diff, bevel gear FRT; balancer, clutch, output, and input shaft assembly; bearing fixed pin; counter balancer gear and shaft;...
How the Company Makes Money
RACL Geartech makes money mainly by manufacturing and selling precision gears and transmission components. Its core revenue stream is product sales (typically business-to-business) where it supplies finished or semi-finished gear parts and assembl...

RACL Geartech Ltd Financial Statement Overview

Summary
Solid operating momentum with higher revenue and a near-doubling of net income, plus improving leverage as debt declines and equity rises. The main drag is cash-flow quality: free cash flow was negative in 2025 and only ~90M in 2026 despite stronger operating cash flow, making cash conversion and consistency key risks.
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
BreakdownTTMMar 2025Mar 2024
Income Statement
Total Revenue1.74B4.90B3.82B
Gross Profit251.36M2.59B1.63B
EBITDA514.44M1.07B899.04M
Net Income185.53M489.50M237.43M
Balance Sheet
Total Assets6.50B7.01B6.37B
Cash, Cash Equivalents and Short-Term Investments57.84M139.50M23.35M
Total Debt2.35B2.36B3.14B
Total Liabilities3.25B3.49B4.11B
Stockholders Equity3.25B3.52B2.27B
Cash Flow
Free Cash Flow393.54M90.30M-201.00M
Operating Cash Flow791.26M621.70M277.28M
Investing Cash Flow-381.17M-525.80M-459.69M
Financing Cash Flow-384.83M-38.40M186.88M

RACL Geartech Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹15.48B36.1318.04%87.68%
64
Neutral
₹15.94B13.600.95%-3.98%9.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
₹1.83B13.8916.37%
60
Neutral
₹10.86B48.290.74%-2.00%-48.06%
60
Neutral
₹14.63B28.490.61%-10.69%-5.27%
60
Neutral
₹16.09B31.050.39%11.99%135.86%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RACLGEAR
RACL Geartech Ltd
1,313.05
315.59
31.64%
IN:BHARATGEAR
Bharat Gears Limited
119.05
31.92
36.63%
IN:GNA
GNA Axles Ltd
371.35
36.44
10.88%
IN:HITECHGEAR
Hi-Tech Gears Limited
577.50
-48.99
-7.82%
IN:PRECAM
Precision Camshafts Ltd.
154.05
-53.15
-25.65%
IN:RICOAUTO
Rico Auto Industries Limited
118.95
43.64
57.95%

RACL Geartech Ltd Corporate Events

RACL Geartech Releases Q3 FY 2025-26 Earnings Call Transcript
Mar 3, 2026
RACL Geartech Ltd, a listed Indian automotive gear and transmission components maker, engages with analysts and investors through periodic earnings calls, underlining its focus on transparency and regulatory compliance in capital markets. The comp...
RACL Geartech Wins Outstanding Social Responsibility Award at Gear Technology India 2026
Mar 3, 2026
RACL Geartech Limited, a player in the gear manufacturing industry, focuses on precision components and strives to integrate operational excellence with sustainable and socially responsible practices. The company’s approach combines ethical ...
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.Date of analysis: May 30, 2026