Rico Auto Industries Ltd (RICOAUTO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rajratan Global

GNA Axles

Kross Ltd

RACL Geartech

Menon Bearings

India Nipp.Elec.

Bharat Seats

NDR Auto Compon.

Sar Auto Prod.

Rico Auto Inds

Frontier Springs

Why is Rico Auto Industries Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.03%

Poor long term growth as Net Sales has grown by an annual rate of 9.33% and Operating profit at 18.40% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.26 times

Negative results in Jun 26

PBT LESS OI(Q) At Rs -6.83 cr has Fallen at -140.3% (vs previous 4Q average)
PAT(Q) At Rs -3.49 cr has Fallen at -124.8% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 30.90 cr has Grown at 23.50%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rico Auto Inds for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rico Auto Inds

26.71%

0.49

56.49%

Sensex

-4.78%

-0.35

13.39%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.33%

EBIT Growth (5y)

18.40%

EBIT to Interest (avg)

1.83

Debt to EBITDA (avg)

3.48

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

1.56

Tax Ratio

31.16%

Dividend Payout Ratio

31.61%

Pledged Shares

Institutional Holding

3.82%

ROCE (avg)

6.96%

ROE (avg)

5.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.21

EV to EBIT

24.40

EV to EBITDA

11.94

EV to Capital Employed

1.63

EV to Sales

0.91

PEG Ratio

5.14

Dividend Yield

0.82%

ROCE (Latest)

8.22%

ROE (Latest)

7.22%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

ROCE(HY)

Highest at 8.79%

NET SALES(Q)

Highest at Rs 755.08 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 7.03 times

-22What is not working for the Company

PBT LESS OI(Q)

At Rs -6.83 cr has Fallen at -140.3% (vs previous 4Q average

PAT(Q)

At Rs -3.49 cr has Fallen at -124.8% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 30.90 cr has Grown at 23.50%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.40 times

OPERATING PROFIT TO NET SALES(Q)

Lowest at 4.61%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 15.63 cr

PBDIT(Q)

Lowest at Rs 34.78 cr.

EPS(Q)

Lowest at Rs -0.27

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Here's what is working for Rico Auto Inds

Net Sales - Quarterly

Highest at Rs 755.08 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 755.08 cr has Grown at 21.9% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 619.43 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 7.03 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Rico Auto Inds

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -6.83 cr has Fallen at -140.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 16.96 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -3.49 cr has Fallen at -124.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 14.06 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 2.40 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin - Quarterly

Lowest at 4.61% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Interest - Latest six months

At Rs 30.90 cr has Grown at 23.50%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 34.78 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -6.83 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.27

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 15.63 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents