Rico Auto Industries Hits New 52-Week High at Rs.117.88 Mark

The stock’s latest peak was accompanied by an intraday high of Rs.117.88, representing a 6.72% rise on the day and outperforming its sector by 3.72%. This surge extends a strong upward trend, with Rico Auto Industries recording gains for eight consecutive trading sessions, cumulatively delivering returns of 41.47% over this period. The stock is currently trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained positive momentum.

Over the past year, Rico Auto Industries has generated a return of 32.69%, significantly outpacing the Sensex’s 9.42% performance during the same timeframe. The Sensex itself is trading close to its own 52-week high, currently just 0.79% shy of the 85,290.06 mark, despite a recent dip of 416.94 points to 84,625.43. The broader market context shows the Sensex trading above its 50-day moving average, which remains above the 200-day moving average, indicating a generally bullish market environment.

Rico Auto Industries’ market capitalisation grade stands at 4, reflecting its position within the micro-cap segment of the Auto Components & Equipments industry. The company’s operating profit has shown a compound annual growth rate of 66.52%, underscoring a robust long-term growth trajectory. Net sales have recorded a growth rate of 15.44%, with the company declaring positive results for the last two consecutive quarters, including the recent September 2025 quarter.

Financial metrics reveal an operating profit to interest ratio of 5.10 times, indicating a relatively strong capacity to cover interest expenses. The dividend payout ratio for the year is at 31.61%, while the debt-equity ratio for the half-year period is 0.92 times, suggesting a moderate level of leverage. Return on Capital Employed (ROCE) is reported at 7.9%, with an enterprise value to capital employed ratio of 1.5, positioning the stock at a valuation discount relative to its peers’ historical averages.

Institutional investors have increased their stake by 1.71% over the previous quarter, collectively holding 3.06% of the company’s shares. This shift in shareholding reflects a growing participation by entities with enhanced analytical capabilities and resources.

Despite the positive momentum, certain financial indicators suggest areas of caution. The company’s Debt to EBITDA ratio stands at 3.38 times, indicating a relatively high level of debt servicing requirement. Over the last five years, net sales have grown at an annual rate of 13.31%, which is modest compared to the recent quarterly growth rates. The average Return on Equity (ROE) is 5.64%, reflecting a moderate level of profitability per unit of shareholders’ funds.

Rico Auto Industries’ 52-week low price was Rs.49.50, highlighting the substantial appreciation in the stock price over the past year. The price-to-earnings-to-growth (PEG) ratio is 2.5, which provides a measure of valuation relative to earnings growth. The stock has also outperformed the BSE500 index over the last three years, one year, and three months, demonstrating consistent market-beating performance in both the long and near term.

In summary, Rico Auto Industries’ recent achievement of a new 52-week high at Rs.117.88 reflects a period of strong price momentum supported by favourable financial metrics and sectoral performance. The stock’s gains have been underpinned by solid operating profit growth, positive quarterly results, and increased institutional participation, all within the context of a broadly bullish market environment.

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