Small-Cap Auto Ancillary Company Partners with BMW AG for Electric Sports Car Components, Targets Rs 520 Crore Revenue

DIIs have purchased a stake in the company as per the recent update after 3 years.

RACL a Small-Cap company has achieved a major milestone by securing nominations from BMW AG for developing components for their electric sports car, as previously communicated in December 2023 and November 2024. This collaboration is expected to generate a lifetime revenue of Rs 520 crores, with peak annual revenue projected at Rs 130 crores by 2029.

This partnership not only reinforces RACL's leadership in the growing e-mobility sector but also highlights its commitment to sustainability. The production process will operate entirely on green electric energy, ensuring a minimal carbon footprint. This development is poised to significantly enhance RACL's business performance and further establish its position as a key player in sustainable automotive solutions.

RACL Geartech Ltd is a small-cap company that specializes in manufacturing and exporting automotive gears and components. The company produces transmission gears and shafts catering to both automotive and industrial applications. RACL serves a diverse customer base, including local and global Original Equipment Manufacturers (OEMs) in the automotive and industrial sectors. With a portfolio of 22 active customers and over 900 SKUs, RACL has built a reputation as a trusted partner in the industry.

Share Performance

Today, the shares of RACL Geartech Ltd closed the day at around Rs 923.80 per share on the BSE. The current market capitalization stands at Rs 996 crore. The company’s shares have delivered a negative return of around 22 per cent in the past year.

Financial Performance

As per the Quarterly Results, in Q2 FY25 RACL Geartech Ltd reported a revenue of Rs 106.13 crore compared to Rs 101.56 crore representing a gain of around 4.50 per cent YoY. The company posted an operating profit of Rs 19.66 crore with a margin of around 18.52 per cent compared to Rs 23.65 crore with a margin of around 23.29 per cent. The company reported a net profit stood at Rs 6.54 crore for the period compared to a profit of Rs 10.21 crore.

Investors must keep this stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.