Is RACL Geartech the Best Stock in Its Sector? A Look at the Numbers

RACL Geartech CMP Rs 1,570 (06 Oct 2026). Market cap Rs 1,830 Cr. ROE 13.89%. P/E 36.91x versus Industry P/E 37.30x.

Updated: 6 Oct 2026 • 2:48 pm

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Is RACL Geartech the Best Stock in Its Sector? A Look at the Numbers

Quick Answer

RACL Geartech is one of the names investors compare when screening the Automobile & Ancillaries sector, built on a 13.89% return on equity and a P/E of 36.91x against an Industry P/E of 37.30x. Whether RACL Geartech is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Automobile & Ancillaries sector peers, so you can judge that for yourself.

Is RACL Geartech the best stock in its sector? The stock trades on the NSE at Rs 1,570 as of 06 October 2026, within its 52-week range of Rs 921.80 to Rs 1,927.70. RACL Geartech Ltd, formerly Raunaq Automotive Components, manufactures transmission gears and shafts for automotive and industrial customers, with exports making up most of its revenue.

RACL Geartech sits in the Automobile & Ancillaries sector, and its 13.89% ROE and 36.91x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector's Industry P/E benchmark.

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Table of Contents

About RACL Geartech

RACL Geartech Ltd, formerly Raunaq Automotive Components, manufactures transmission gears and shafts for automotive and industrial customers, with exports making up most of its revenue. The stock rose about 1.3 percent during this session and is trading about 19 percent below its 52-week high after rising about 70 percent from its 52-week low, and the P/E shown reflects the previous close. At a market capitalisation of Rs 1,830 Cr, it is tracked as part of the Automobile & Ancillaries sector on Univest.

Is RACL Geartech the Best Stock in Its Sector?

RACL Geartech makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 13.89% ROE with a 36.91x P/E against the sector's 37.30x Industry P/E. RACL Geartech trades close to its 37.30x Industry P/E with a 13.89% ROE, though a 5.20x price to book and a debt to equity ratio of 0.67 are worth weighing after the stock rose about 70 percent from its 52-week low.

Metric	RACL Geartech
CMP (NSE)	Rs 1,570.00
52-Week High / Low	Rs 1,927.70 / Rs 921.80
Market Cap	Rs 1,830 Cr
P/E (TTM) vs Industry P/E	36.91x vs 37.30x
P/B	5.20
ROE	13.89%
EPS (TTM)	Rs 42.07
Dividend Yield	0.10%
Debt to Equity	0.67

Compare RACL Geartech Against Other Automobile & Ancillaries Sector Stocks

How RACL Geartech Compares Against Its Automobile & Ancillaries Sector Peers

The table below sets RACL Geartech against 2 other Automobile & Ancillaries sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
RACL Geartech	1,830	36.91	13.89%	0.67
Pitti Engineering	4,231	34.00	11.94%	0.82
Precision Camshafts	1,047	25.63	5.31%	0.07
Peer average (2 companies)	-	29.81	8.62%	0.44

Against this peer set, RACL Geartech's 13.89% ROE is above the 8.62% peer average, and its P/E of 36.91x runs above the peer average of 29.81x. RACL Geartech trades close to its 37.30x Industry P/E with a 13.89% ROE, though a 5.20x price to book and a debt to equity ratio of 0.67 are worth weighing after the stock rose about 70 percent from its 52-week low.

What Makes RACL Geartech Worth Watching in Automobile & Ancillaries

Close to Industry P/E: A 36.91x P/E versus a 37.30x Industry P/E shows the stock trading right at sector norms.
Solid ROE: A 13.89% ROE is a healthy figure for an auto component manufacturer.
Export-led gear business: Making transmission gears and shafts with most revenue coming from exports gives RACL Geartech an international customer base, with currency and demand cycles to watch.

RACL Geartech Valuation: Is It Justified?

RACL Geartech trades close to its 37.30x Industry P/E with a 13.89% ROE, though a 5.20x price to book and a debt to equity ratio of 0.67 are worth weighing after the stock rose about 70 percent from its 52-week low. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.

Also read – Is Precot the Best Stock in Its Sector? A Look at the Numbers

Download the Univest iOS App or Univest Android App to track RACL Geartech and other Automobile & Ancillaries sector stocks.

How to Track RACL Geartech Before You Invest

Before deciding whether RACL Geartech deserves its label as the best stock in its sector for your own portfolio, compare it directly against Automobile & Ancillaries sector peers using the steps below.

Open the Univest Screener and search for RACL Geartech to view live price, valuation ratios, and peer comparisons within the Automobile & Ancillaries sector.
Compare its P/E, P/B, and ROE against other Automobile & Ancillaries sector stocks before deciding if the current valuation fits your strategy.
Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

RACL Geartech earns a place in the best stock in its sector conversation on the strength of a 13.89% ROE and a P/E of 36.91x against a 37.30x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Is RACL Geartech the best stock in its sector?

Ans. RACL Geartech has a 13.89% ROE and trades at 36.91x P/E against a 37.30x Industry P/E, and compares above the peer average ROE of 8.62% in this article's named comparison, so the answer depends on what an investor is prioritising.

What is the current share price of RACL Geartech?

Ans. RACL Geartech was trading at Rs 1,570.00 on the NSE as of 06 October 2026, within its 52-week range of Rs 921.80 to Rs 1,927.70.

What sector does RACL Geartech belong to?

Ans. RACL Geartech is classified under the Automobile & Ancillaries sector on Univest.

How does RACL Geartech compare to its sector peers on P/E?

Ans. RACL Geartech's P/E of 36.91x is above the 29.81x average of the 2 named peers compared in this article.

What is RACL Geartech's return on equity?

Ans. RACL Geartech reported a return on equity of 13.89%, which is above the 8.62% average of its named peers in this comparison.

Should I invest in RACL Geartech based on its sector position?

Ans. RACL Geartech's sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.

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