On the trading day, Rico Auto Industries outperformed its sector by 1.34%, touching an intraday high of Rs.118, which represents a 4.63% rise within the session. The stock has been on a consistent upward trajectory, recording gains for nine consecutive days and delivering a cumulative return of 43.78% during this period. This rally has propelled the stock well above its moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum.
Comparatively, the broader market benchmark, the Sensex, experienced a positive session as well, rising 383.34 points to close at 85,027.12, a 0.42% increase. The Sensex remains close to its own 52-week high of 85,290.06, trading just 0.31% below that level. The index’s upward movement was supported by mega-cap stocks, with the 50-day moving average positioned above the 200-day moving average, indicating a bullish trend.
Over the past year, Rico Auto Industries has delivered a total return of 33.50%, significantly outpacing the Sensex’s 9.60% return over the same period. The stock’s 52-week low was recorded at Rs.49.50, highlighting the extent of its price appreciation over the last twelve months.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
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Rico Auto Industries operates within the Auto Components & Equipments sector, where it has demonstrated steady financial performance. The company’s operating profit has grown at an annual rate of 66.52%, reflecting robust operational efficiency. Net sales have shown a growth rate of 15.44%, with the company reporting positive results for the last two consecutive quarters, including the September 2025 quarter.
Financial ratios further illustrate the company’s position. The operating profit to interest ratio for the quarter stands at 5.10 times, indicating a comfortable coverage of interest expenses. The dividend payout ratio for the year is at 31.61%, while the debt-equity ratio at the half-year mark is 0.92 times, suggesting a moderate level of leverage. Return on capital employed (ROCE) is recorded at 7.9%, and the enterprise value to capital employed ratio is 1.5, which points to an attractive valuation relative to capital utilisation.
Despite the positive momentum, the company’s return on equity (average) is 5.64%, which indicates modest profitability relative to shareholders’ funds. Additionally, the debt to EBITDA ratio is 3.38 times, signalling a relatively high debt servicing requirement. Net sales growth over the last five years has been at an annual rate of 13.31%, reflecting a steady but moderate expansion in revenue.
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 change in evaluation by investors with significant analytical resources.
Get the full story on Rico Auto Industries ! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Auto Components & Equipments micro-cap. Make informed decisions!
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Over the longer term, Rico Auto Industries has demonstrated market-beating performance, outperforming the BSE500 index over the last three years, one year, and three months. The company’s profit growth over the past year has been 13.9%, with a PEG ratio of 2.5, which provides a measure of valuation relative to earnings growth.
The stock’s recent rally and new 52-week high reflect a combination of strong financial metrics, positive quarterly results, and technical strength. Trading well above all key moving averages, the stock’s momentum is evident in its price action and volume trends.
While the company’s debt servicing ratios and return on equity suggest areas for cautious monitoring, the overall financial profile and market performance have contributed to the stock’s current valuation and price levels.
In summary, Rico Auto Industries’ attainment of a new 52-week high at Rs.118 marks a significant milestone in its stock market journey, supported by a blend of operational results, valuation metrics, and market dynamics within the Auto Components & Equipments sector.
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