RACL Geartech Ltd (RACLGEAR) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of RACL Geartech Ltd ₹831, price ₹1,541, upside -46.1%, quality 49 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range ₹266.49 – ₹1,852 · fair‑value band ₹494.30 – ₹1,172 · the ₹1,541 price screens above the ₹830.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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RACL Geartech Ltd (RACLGEAR) currently trades at ₹1,541, while our model-based Fair Value estimate is ₹830.50, 46.1% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹1,020 per share, and 1 of the 26 models we run sit above the ₹1,541 price.
Bear case: the Asset-Based group reads lowest at ₹200.28, and 25 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹494.30 (bear) to ₹1,172 (bull), the price of ₹1,541 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 49/100 (below-average quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
RACL Geartech Ltd reported revenue of ₹4.9B in FY2026 versus ₹2.6B in FY2022, a compound +17.5%/yr. Reported net income was ₹490M in FY2026, compounding +19.6%/yr from FY2022.
Key figures
Market cap ₹18.2B (≈ $189M) · P/E ratio 36.1 · P/S ratio 3.61 · EPS (TTM) ₹42.64 · Dividend yield 0.1% · Net margin 10.0% · Return on equity 16.9% · Return on assets (EBIT) 11.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 61% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −32% fair-value upside, at −46%, RACLGEAR screens richer than that median.
Fair Value models
Bear ₹494.30Fair Value ₹830.50Bull ₹1,172
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹21.61 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+18.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.2%
Start year 2021 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.5%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+13.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.8%
Dividend (yield on the price)0.1%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 15%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+39.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +33.7% a year for the price.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Auto Parts · 674 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score49 · Below median
Fair Value upside−46.1% · Bottom 25%
Profitability
Return on equity (TTM)16.9% · Top 25%
Return on assets6.9% · Top 25%
Net margin (TTM)9.5% · Top 25%
Operating margin (TTM)17.2% · Top 25%
Growth and dividend
Revenue growth31.5% · Top 25%
Dividend yield (TTM)0.1% · Bottom 25%
Balance sheet
Debt / equity0.17× · Above median
Valuation Multiplesvs Auto Parts median · lower = cheaper
P/E (TTM)36.1× · Pricier than median
P/B5.16× · Priciest 25%
P/S (TTM)3.48× · Priciest 25%
P/FCF46.9× · Priciest 25%
EV/EBITDA15.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 26
FUTURE (revenue growth)100· sector 29
PAST (return on equity)68· sector 29
HEALTH (low debt)92· sector 95
DIVIDEND (yield)2· sector 38
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is RACL Geartech Ltd (RACLGEAR) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹830.50 versus a price of ₹1,541, about −46% upside (overvalued).
What is the fair value of RACLGEAR?
Our model-based fair value for RACL Geartech Ltd is ₹830.50 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹1,541.
What is the quality score of RACLGEAR?
RACL Geartech Ltd has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RACL Geartech Ltd (RACLGEAR)?
Our model-based price target is the fair value of ₹830.50 (as of Oct 2, 2026) from 26 valuation models. Cautious scenario ₹494.30, optimistic scenario ₹1,172. It is a calculation from audited fundamentals, not an analyst target.
What is the RACL Geartech Ltd stock forecast for 2026?
Our models put fair value at ₹830.50, about −46% upside versus a price of ₹1,541 (overvalued). Cautious scenario ₹494.30, optimistic scenario ₹1,172. The calculation is refreshed regularly with new filings.
What is the revenue of RACL Geartech Ltd (RACLGEAR)?
RACL Geartech Ltd reported trailing-twelve-month revenue of about ₹5.2B (latest available figure, as of Oct 2, 2026).
Does RACL Geartech Ltd pay a dividend?
RACL Geartech Ltd currently shows a dividend yield of about 0.10% relative to its recent price (as of Oct 2, 2026).
What growth is priced into RACL Geartech Ltd (RACLGEAR)?
For today's price to be fair in a discounted-cash-flow model, RACL Geartech Ltd would have to grow free cash flow by +39.3 % per year for five years (discount rate 13.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.2 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of RACLGEAR use?
Our models discount RACL Geartech Ltd at 13.9 %: a base by market capitalisation (micro), damped by beta 0.37, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RACL Geartech Ltd that is +39.3 % per year a year over ten years, using the same discount rate (13.9 %) and the same formula as our fair value.
How much growth has RACL Geartech Ltd (RACLGEAR) delivered so far?
Over the past 5 years revenue at RACL Geartech Ltd grew +19.2 % a year. The price currently implies +39.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
What is the free cash flow yield of RACL Geartech Ltd (RACLGEAR)?
The free-cash-flow yield on the price is 2.13 %: that much free cash flow RACL Geartech Ltd produces per unit of market value. When it exceeds the discount rate of our models (13.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RACL Geartech Ltd (RACLGEAR)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RACL Geartech Ltd it is ₹830.50 per share (as of Oct 2, 2026), against a price of ₹1,541. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is RACL Geartech Ltd stock overvalued or undervalued in 2026?
As of Oct 2, 2026, RACLGEAR trades above its calculated fair value: price ₹1,541, fair value ₹830.50, a gap of about −46% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RACLGEAR?
No. The price is what the market pays today (₹1,541); the fair value is what the company's own numbers justify (₹830.50). For RACL Geartech Ltd the two are ₹710.65 per share apart. That gap is exactly why we show both numbers side by side.
How much is RACL Geartech Ltd worth?
The market values RACL Geartech Ltd at about ₹18.2B (market capitalisation, as of Oct 2, 2026). Per share that is ₹1,541; our models calculate a fair value of ₹830.50 per share.
What do the bullish and bearish scenarios say about RACLGEAR?
Our models span a range for RACL Geartech Ltd: cautious scenario ₹494.30, base ₹830.50, optimistic ₹1,172 per share (as of Oct 2, 2026, price ₹1,541). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RACLGEAR?
RACL Geartech Ltd trades at a price-to-earnings ratio of 36.1 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹830.50 is built from several models across several years. Other multiples: P/B 5.2, P/S 3.5, EV/EBITDA 15.7.
How solid is the balance sheet of RACL Geartech Ltd (RACLGEAR)?
Balance-sheet figures for RACL Geartech Ltd (as of Oct 2, 2026): return on equity 16.9%, debt of 0.17 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is RACLGEAR from its 52-week high?
RACL Geartech Ltd trades at ₹1,541, about 17% below its 52-week high of ₹1,852 and 61% above the low of ₹959.30 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹830.50 is for.
Which stocks are comparable to RACL Geartech Ltd?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RACL Geartech Ltd stock attractive at the current price?
The data as of Oct 2, 2026: price ₹1,541, calculated fair value ₹830.50 (−46%), Quality Score 49/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RACLGEAR calculated?
We run RACL Geartech Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹830.50, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. RACL Geartech Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RACL Geartech Ltd (RACLGEAR)?
The closing price on Oct 1, 2026 was ₹1,541. Our model-based fair value is ₹830.50, about −46% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RACL Geartech Ltd right now?
The price sits above even our optimistic bull case (₹1,172). The favourable scenario is already priced in. Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹494.30 to ₹1,172) leaves room in how you read the outcome.
Key figures of RACL Geartech Ltd
How large is the market capitalisation of RACL Geartech Ltd (RACLGEAR)?
The market capitalisation of RACL Geartech Ltd is ₹18.2B (≈ $189M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RACL Geartech Ltd (RACLGEAR)?
The price-to-sales ratio of RACL Geartech Ltd is 3.61 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RACL Geartech Ltd (RACLGEAR)?
Earnings per share at RACL Geartech Ltd are ₹42.64 (price ÷ EPS = P/E 36.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RACL Geartech Ltd (RACLGEAR)?
The dividend yield of RACL Geartech Ltd is 0.1% (payout 3.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of RACL Geartech Ltd (RACLGEAR)?
The net margin of RACL Geartech Ltd is 10.0% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RACL Geartech Ltd (RACLGEAR)?
The return on equity (ROE) of RACL Geartech Ltd is 16.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RACL Geartech Ltd (RACLGEAR)?
On an EBIT basis the return on assets of RACL Geartech Ltd is 11.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RACL Geartech Ltd (RACLGEAR)?
The operating margin of RACL Geartech Ltd is 17.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RACL Geartech Ltd (RACLGEAR)?
Revenue at RACL Geartech Ltd is growing +31.5% versus a year earlier (3y avg +13.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RACL Geartech Ltd (RACLGEAR)?
Earnings per share at RACL Geartech Ltd are growing +7.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does RACL Geartech Ltd (RACLGEAR) carry?
The net debt of RACL Geartech Ltd is ₹2.2B (fiscal year 2026, ≈ 5.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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