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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Frontier Springs

Rico Auto Inds

GNA Axles

Wheels India

India Nipp.Elec.

Divgi Torq

Talbros Auto.

India Motor Part

NDR Auto Compon.

Precision Camshf

The Hi-Tech Gear

Why is Rico Auto Industries Ltd ?

Healthy long term growth as Operating profit has grown by an annual rate 66.52%

With a growth in Net Sales of 15.44%, the company declared Very Positive results in Sep 25

The company has declared positive results for the last 2 consecutive quarters
OPERATING PROFIT TO INTEREST(Q) Highest at 5.10 times
DPR(Y) Highest at 31.61%
DEBT-EQUITY RATIO(HY) Lowest at 0.92 times

With ROCE of 7.9, it has a Attractive valuation with a 1.6 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 27.18%, its profits have risen by 13.9% ; the PEG ratio of the company is 2.6

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Rico Auto Inds should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rico Auto Inds for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rico Auto Inds

27.63%

0.50

55.47%

Sensex

6.63%

0.59

11.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.31%

EBIT Growth (5y)

66.52%

EBIT to Interest (avg)

1.83

Debt to EBITDA (avg)

3.76

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

1.52

Tax Ratio

34.77%

Dividend Payout Ratio

31.61%

Pledged Shares

Institutional Holding

2.01%

ROCE (avg)

6.21%

ROE (avg)

5.64%

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

2.08

EV to EBIT

19.82

EV to EBITDA

10.66

EV to Capital Employed

1.57

EV to Sales

0.99

PEG Ratio

2.59

Dividend Yield

0.43%

ROCE (Latest)

7.93%

ROE (Latest)

5.81%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

24What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.10 times

DPR(Y)

Highest at 31.61%

DEBT-EQUITY RATIO(HY)

Lowest at 0.92 times

DEBTORS TURNOVER RATIO(HY)

Highest at 6.57 times

NET SALES(Q)

Highest at Rs 627.36 cr

PBDIT(Q)

Highest at Rs 60.99 cr.

PBT LESS OI(Q)

Highest at Rs 23.29 cr.

PAT(Q)

Highest at Rs 17.58 cr.

EPS(Q)

Highest at Rs 1.28

-1What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 16.40 cr

Loading Valuation Snapshot...

Here's what is working for Rico Auto Inds

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 23.29 cr has Grown at 113.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 10.90 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.10 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 627.36 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 60.99 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 23.29 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 17.58 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.28

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.92 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 6.57 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 31.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Rico Auto Inds

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 16.40 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents