Stock Performance and Market Context
On 1 Dec 2025, Rico Auto Industries touched an intraday high of Rs.124.1, representing a 2.48% rise during the trading session. Despite this peak, the stock experienced some volatility, with an intraday low of Rs.114.3, reflecting a 5.62% dip from the previous close. The day’s overall change was a modest 0.70%, underperforming its sector by 2.29%. Notably, the stock has traded above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a strong upward trend over multiple timeframes.
The broader market context shows the Sensex opening higher at 86,065.92 points, gaining 359.25 points or 0.42%, before settling at 85,848.30 points, a 0.17% increase. The Sensex itself is close to its own 52-week high, just 0.24% shy of 86,055.86 points, and has been on a three-week consecutive rise, gaining 1.52% over that period. Small-cap stocks have led the market rally, with the BSE Small Cap index gaining 0.41% on the day.
Rico Auto Industries’ Yearly Trajectory
Over the past year, Rico Auto Industries has demonstrated robust performance, with its stock price appreciating by 34.15%, significantly outpacing the Sensex’s 7.57% gain over the same period. The stock’s 52-week low was Rs.49.5, highlighting the substantial growth trajectory it has followed. This performance is underpinned by the company’s financial results and operational metrics, which have shown positive trends in recent quarters.
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Financial Highlights Driving the Rally
Rico Auto Industries’ recent financial disclosures reveal a growth in net sales by 15.44% in the latest quarter, contributing to a positive earnings trend for two consecutive quarters. The company’s operating profit has expanded at an annual rate of 66.52%, indicating strong operational efficiency. The operating profit to interest ratio stands at 5.10 times, reflecting a comfortable buffer in meeting interest obligations.
The company’s dividend payout ratio is at 31.61%, the highest recorded, signalling a commitment to returning value to shareholders. Meanwhile, the debt-equity ratio remains relatively low at 0.92 times, suggesting a balanced approach to leverage. Return on Capital Employed (ROCE) is reported at 7.9%, and the enterprise value to capital employed ratio is 1.6, indicating an attractive valuation relative to the company’s capital base.
Despite these positives, the company’s debt to EBITDA ratio is 3.38 times, which points to a moderate level of debt servicing pressure. The average return on equity over time is 5.64%, reflecting modest profitability per unit of shareholder funds. Net sales growth over the last five years has averaged 13.31%, indicating steady but moderate expansion in revenue streams.
Market Position and Institutional Participation
Rico Auto Industries operates within the Auto Components & Equipments sector, a segment that has shown resilience and growth potential. The stock’s performance over the last three years, one year, and three months has outpaced the BSE500 index, underscoring its market-beating returns in both the long and near term.
Institutional investors have increased their stake by 1.71% over the previous quarter, now collectively holding 3.06% of the company’s shares. This growing institutional participation reflects a shift in market assessment and confidence in the company’s fundamentals, given the resources and analytical capabilities these investors bring to the table.
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Technical Momentum and Trend Analysis
The stock’s recent price action includes a three-day consecutive gain prior to a slight pullback, indicating a phase of consolidation after a strong upward move. Trading above all major moving averages, including the 200-day average, suggests a sustained bullish momentum. This technical positioning often reflects underlying strength in the stock’s price dynamics and investor sentiment.
While the stock underperformed its sector on the day by 2.29%, the achievement of a new 52-week high at Rs.124.1 remains a key highlight. This milestone is a testament to the stock’s resilience and the company’s ability to maintain growth in a competitive industry environment.
Summary of Key Metrics
To summarise, Rico Auto Industries’ stock price has reached Rs.124.1, its highest level in the past year, supported by:
- Net sales growth of 15.44% in the latest quarter
- Operating profit growth at an annual rate of 66.52%
- Operating profit to interest coverage of 5.10 times
- Dividend payout ratio at 31.61%
- Debt-equity ratio at 0.92 times
- Return on capital employed at 7.9%
- Institutional shareholding rising to 3.06%
These factors collectively underpin the stock’s upward trajectory and its ability to outperform broader market indices over the past year.
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