RACL GEARTECH LIMITED Valuation

RACLGEAR · Automobile and Auto Components · Current price ₹1,511.9

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DocStoX fair value
₹692
low confidence
Current price
₹1,512
Upside
-54.2%
P/E ratio
38.3x
P/B ratio
5.1x
Verdict
Avoid
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Is RACL GEARTECH LIMITED undervalued?

DocStoX estimates the fair value of RACL GEARTECH LIMITED at ₹692 per share, versus the current market price of ₹1,512. That puts the stock about -54.2% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹294), Relative P/E (₹1,648), Graham floor (₹513). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹294 (bear) to ₹692 (base) to ₹1,648 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

RACL GEARTECH LIMITED trades at a P/E of 38.3x and a P/B of 5.1x, with a dividend yield of 0.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on RACL GEARTECH LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.