Rico Auto Industries Hits New 52-Week High of Rs.118 Marking Significant Milestone

On the trading day, Rico Auto Industries touched an intraday high of Rs.118, representing a 4.63% increase from its previous close. This new peak marks a significant achievement for the company within the Auto Components & Equipments sector, as the stock has been on a consistent upward trajectory for the past nine consecutive days. Over this period, the stock has delivered returns of 43.78%, underscoring strong momentum in its price movement.

The stock's performance today also outpaced its sector by 1.34%, highlighting its relative strength within the Auto Components & Equipments industry. Furthermore, Rico Auto Industries is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a robust technical position. This alignment across multiple moving averages often indicates sustained buying interest and positive price trends.

Looking at the broader market context, the Sensex opened flat but gained momentum to close at 85,027.12 points, up 0.42% or 383.34 points. The index remains close to its own 52-week high of 85,290.06, trading just 0.31% below that level. The Sensex is currently positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a bullish market environment. Mega-cap stocks led the gains, contributing to the overall positive market sentiment.

Over the past year, Rico Auto Industries has delivered a total return of 33.50%, significantly outperforming the Sensex’s 9.60% return during the same period. The stock’s 52-week low was Rs.49.50, illustrating a substantial price appreciation over the last twelve months. This performance reflects the company’s ability to maintain upward price momentum amid varying market conditions.

Financially, the company has shown steady growth in key metrics. Net sales have recorded a growth rate of 15.44% in the recent quarter, contributing to positive results declared in September 2025. Operating profit has expanded at an annual rate of 66.52%, indicating healthy profitability trends. The operating profit to interest ratio for the quarter stands at 5.10 times, suggesting a comfortable coverage of interest expenses by operating earnings.

Dividend payout ratio for the year is noted at 31.61%, reflecting the company’s approach to returning value to shareholders. The debt-equity ratio at half-year stands at 0.92 times, which is relatively low, indicating a moderate level of leverage. Return on capital employed (ROCE) is recorded at 7.9%, while the enterprise value to capital employed ratio is 1.5, suggesting an attractive valuation compared to peers.

Institutional investors have increased their stake by 1.71% over the previous quarter, now collectively holding 3.06% of the company’s shares. This shift in shareholding reflects a change in evaluation by these investors, who typically have greater resources to analyse company fundamentals.

Despite the positive momentum and financial indicators, some metrics highlight areas of caution. The company’s debt to EBITDA ratio is 3.38 times, indicating a relatively high level of debt servicing requirement. Additionally, the average return on equity (ROE) is 5.64%, which points to modest profitability per unit of shareholders’ funds. Net sales growth over the last five years has been at an annual rate of 13.31%, which is moderate in comparison to recent quarterly growth rates.

Over the longer term, Rico Auto Industries has outperformed the BSE500 index across multiple time frames including the last three years, one year, and three months. Profit growth over the past year has been 13.9%, with a PEG ratio of 2.5, reflecting the relationship between price appreciation and earnings growth.

In summary, Rico Auto Industries’ stock reaching Rs.118 today marks a significant milestone, supported by sustained price gains, strong quarterly financials, and favourable technical indicators. The stock’s performance relative to its sector and the broader market underscores its current momentum within the Auto Components & Equipments industry.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →