The share price of the small-cap stock rose around 11 percent to its intraday high of Rs 1282.1 per share from its previous close of Rs 1156.9 after the company announced the business update for December 2023.
The company, RACL Gearteach Limited, reported in its filing that its December 2023 monthly sales reached a record-breaking Rs 41.07 crores, the highest amount ever recorded by the company.
According to the company report, the net revenue decreased by 16 percent year over year, from Rs 88 crore in Q2FY23 to Rs 102 crore in Q2FY24. Their revenue also rose 16 percent sequentially from Rs 88 crore in Q1FY24 to the current levels.
In addition, the company’s net profit is unchanged in the year over year, from Rs 10 crores in Q2FY23 to Rs 10 crores in Q2FY24. Their profit increased by 11 percent on a quarterly basis from Rs 9 crore in Q1FY24 to the current levels.
The small-cap company has a market capitalization of Rs 1,353 crores, and the share price of the company has risen by 4 percent in the last six months and 70 percent in the last year.
RACL Geartech Limited has a low price-to-earnings ratio of 30 compared to its peers, with a return on equity of 25 percent, a return on capital employed of 21 percent, and a net profit margin of 10 percent.
The company promoter owns 53.35 percent of the company, the general public owns 46.57 percent, foreign institutional investors own 0.07 percent, and domestic institutional investors own 0.01 percent.
RACL Geartech Limited, formerly Raunaq Automotive Components Limited, is an Indian company that manufactures automotive components for two-wheeled, three-wheeled, and four-wheeled vehicles.
Written by Sriram KV
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