Malabar India fund Acquires Additional Stake in RACL Stock Price up by More Than 5%
By Ankur Chandra | Updated at: May 31, 2025 10:45 PM IST
Mumbai, May 26, 2025: Shares of RACL Geartech Ltd (NSE: RACLGEAR | BSE: 520073) witnessed a sharp upward movement of 5.11% intraday, reaching a high of ₹1,020, after Malabar India Fund Limited increased its stake in the company through a preferential allotment. This strategic investment lifted investor sentiment, driving the stock to the upper band of its daily trading range and pushing the company’s market capitalisation to ₹1,099.72 crore.
Malabar India Fund Increases Stake to 5.87%
In a regulatory filing dated May 23, Malabar India Fund Limited disclosed the acquisition of 5,03,461 equity shares through preferential allotment. This move raised the fund’s total holding in RACL Geartech to 6,91,785 shares, representing 5.87% of the company’s diluted equity base, a notable rise from its previous stake of 1.60%. The development is widely seen as a sign of confidence from one of the country’s well-regarded institutional investors.
Stock Performance at a Glance
| Metric | Value |
|---|---|
| Current Price | ₹1,020.00 |
| Day’s Gain | ₹49.60 (+5.11%) |
| Previous Close | ₹970.40 |
| Day’s Range | ₹950.00 – ₹1,020.00 |
| 52-Week Range | ₹648.40 – ₹1,269.90 |
| VWAP | ₹1,000.90 |
| Market Cap (Full) | ₹1,099.72 Cr |
| PE / PB Ratio | 40.22 / 5.12 |
| ROE | 12.73% |
Strength Rooted in Financial Fundamentals
The stock’s positive trajectory aligns with an encouraging financial performance. For the quarter ended December 2024, RACL Geartech reported total income of ₹109.75 crore and net profit of ₹7.67 crore, resulting in an earnings per share (EPS) of ₹7.11.
Operating margins remained firm at 22.91%, while net profit margins stood at 7.01%, indicating prudent cost management and sustained profitability. These figures underscore the company’s steady growth momentum and financial resilience.
Key Financial Metrics – Q3 FY25 (Standalone)
| Particulars | Q3 FY25 (Dec ’24) |
|---|---|
| Revenue | ₹109.49 Cr |
| Total Income | ₹109.75 Cr |
| Net Profit | ₹7.67 Cr |
| EPS | ₹7.11 |
| Cash EPS | ₹14.22 |
| Operating Margin | 22.91% |
| Net Profit Margin | 7.01% |
Strategic Outlook
RACL Geartech’s growing appeal to institutional investors like Malabar India Fund signals confidence in its long-term value proposition. With a solid track record of earnings, consistent performance, and robust margins, the company is well-positioned in the auto components and precision engineering sectors.
The latest capital infusion not only provides growth capital but also aligns RACL with a seasoned investor renowned for backing high-quality, enduring businesses. This partnership is likely to support the company’s strategic roadmap, reinforcing its foundation for sustained value creation.
Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.
REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/B713D617_5466_4913_B881_32A61A659050_111759.pdf
