Friday, January 15, 2016

RACL GEARTECH LTD (520073) :- VALUE BUY


Dear friends,


 


 


  Today we are looking in to Auto parts & Equipment  sector stock for medium to long term investments


 



 

               “RACL Geartech Ltd”


            


               
      

Established in the year 1989, the name of RACL Geartech Limited has garnered tremendous respect in the field of manufacturing of automotive components that are used widely in Motorcycles & Scooters, 3 & 4 Wheeler Passenger & Cargo Vehicles,


 


RACL has stretched out its production capacity to include innovatively designed assortment of sub-assemblies, Industrial Gears for Electrical Switch Gears & Circuit Breakers, Winches & Cranes. The strength to manufacture world class products is an outcome of the dedication and expertise of a team of 350 employees who work efficiently by blending skills with perseverance. It is this combination of technology and manpower that has fetched for RACL Geartech a credible standing both in domestic and overseas market where it is revered for presenting flawless and ultra modern automotive components.


 


Headquarter of this manufacturing giant is located in New Delhi from where all the work is examined and synchronized in an efficient manner. Aside from this, one of the state-of-the-art manufacturing units of the company is located in Gajraula and the other division has been set up in Noida.  The manufacturing unit in Gajraula is on the national highway NH-24, around 100 kms from New Delhi while the one in Noida is situated 15 kms from Delhi in state-of- the- art Industrial hub.



Keeping track of the industrial trends, RACL Geartech Ltd manufactures products with innovative designs that appropriately serve the needs of automobile sector and are available in diverse dimensions. RACL is envisioned to achieve sales revenue of over US$ 25 million including export revenue of over US$ 10 million in immediate future as mark of its consistent growth & success.



Products



Promoter  holding  51.09 % stake, company posted 58.4 cr top line and 2 cr bottom line in latest half year ended 2015, expected bottom line above 4.5 cr with an EPS 4.5 in full year 2015-16, Book value is 30.2 , 120 cr revenue company is available just 42 cr market cap, total auto motive  industry shares trading 59 PE , this stock trading only 9 P E forward , Governments MAKE IN INDIA  program is more benefit for this sector expected, something special bonanza may announce in upcoming budget in this sector.


 


  Stock trading only in BSE @43  level,  medium to long term investor can buy @ current price and add more in corrections (if any) ,this stock can give good return in portfolio.


 



Before buying any stock consult certified financial person.


Disclosure: It is safe to assume that I have vested interest in the stock.


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