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RACL GeartechBOM:520073 +2.30%84 Gross Margin % is 66.72% as of Mar. 2026, which is 19% above its 10-year median of 55.95. GuruFocus rates BOM:520073 with a GF Score™ of 84/100 and a GF Value™ of ₹1,325.52 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,307 Vehicles & Parts companies, RACL Geartech ranks better than 98.85% on this metric.
The historical rank and industry rank for RACL Geartech's Gross Margin % or its related term are showing as below:
BOM:520073'
s Gross Margin % Range Over the Past 10 Years
Min: 43.76 Med: 55.95 Max: 70.97
Current: 70.51
During the past 13 years, the highestGross Margin % of RACL Geartech was 70.97%. The lowest was 43.76%. And the median was 55.95%.
BOM:520073's Gross Margin % is ranked better than 98.85% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 19.87
vs BOM:520073: 70.51
RACL Geartech had a gross margin of 66.72% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for RACL Geartech was 6.50% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
RACL Geartech had a gross margin of 66.72% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
RACL Geartech Gross Margin % Related Terms
RACL Geartech Gross Margin % Historical Data
* Premium members only.
The historical data trend for RACL Geartech's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:520073 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, RACL Geartech's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RACL Geartech Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, RACL Geartech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RACL Geartech's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
RACL Geartech (BOM:520073) has a Gross Margin % of 66.72% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RACL Geartech and its competitors. This is 19% above median its historical median of 55.95. Over the past decade, RACL Geartech's Gross Margin % has ranged from 43.76 to 70.97. According to the industry distribution chart, RACL Geartech ranks #15 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 1.1%.
Is RACL Geartech's Gross Margin % too high?
RACL Geartech's current Gross Margin % of 66.72% is 19% above median its 10-year median of 55.95. Over the past 10 years, this metric has ranged from a low of 43.76 to a high of 70.97. The Vehicles & Parts industry median Gross Margin % is 19.87. RACL Geartech's value of 66.72% is 235.8% above this industry median. Based on the distribution chart, RACL Geartech ranks #15 out of 1307 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, RACL Geartech has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does RACL Geartech's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, RACL Geartech ranks #15 out of 1307 companies for Gross Margin %. This places RACL Geartech in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.87. RACL Geartech's value of 66.72% is 235.8% above this benchmark. Historically, RACL Geartech's own Gross Margin % has ranged from 43.76 to 70.97 over the past decade. While the company's 10-year median is 55.95 vs. the industry median of 19.87, RACL Geartech has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.87, based on 1,307 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RACL Geartech's current Gross Margin % of 66.72% is 235.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on RACL Geartech and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RACL Geartech's current Gross Margin % is 66.72%, which is 19% above median its own 10-year median of 55.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RACL Geartech stock overvalued right now?
Based on GuruFocus' analysis, RACL Geartech (BOM:520073) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,325.52, compared to a current price of ₹1,299.00 — trading 2% below its estimated fair value. The current Gross Margin % is 66.72%, which is 19% above median its 10-year median of 55.95 and 235.8% above the Vehicles & Parts industry median of 19.87. RACL Geartech's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For RACL Geartech (BOM:520073), the current Gross Margin % is 66.72% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RACL Geartech (BOM:520073) Overvalued in 2026?
Based on GuruFocus' analysis, RACL Geartech stock appears to be undervalued.
The current stock price of ₹1,299.00 is trading 2% below its estimated GF Value™ of ₹1,325.52.
GuruFocus considers RACL Geartech to be Fairly Valued.
Key valuation signals for BOM:520073:
Gross Margin %: 66.72% (19% above median its 10-year median of 55.95)
GF Value™: ₹1,325.52 vs. price of ₹1,299.00 (2% below fair value)
Industry Position: 235.8% above the Vehicles & Parts median (#15 of 1307)
No single metric tells the full story. See the BOM:520073 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RACL Geartech Ltd manufactures and markets automotive components. It specializes in gears, shafts, and other accessories. Its products include Transmission Gears and Shafts, Reduction Gears Trains CVT Gear Boxes, Engine Timing Gears, Sub-Assemblies, Sprockets and Ratchets, Precision Machined Parts, Synchronizing Cones and Rings and Industrial Gears. The firm produces automotive components for motorcycles and scooters, three-wheeler passenger vehicles, four-wheeler passenger vehicles, agricultural machinery, tractors, and light and heavy commercial vehicles. The group has a business presence globally. It generates its main revenue from exports.
84GF Score
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