ScoreWhy is Rico Auto Industries Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.26 times
- Poor long term growth as Net Sales has grown by an annual rate of 11.01% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.26 times
- The company has been able to generate a Return on Equity (avg) of 5.59% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Operating profit has grown by an annual rate 70.32%
3
Flat results in Mar 26
- PAT(Q) At Rs 5.99 cr has Fallen at -58.6% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 2.92 times
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 15.63 cr
4
With ROCE of 8.2, it has a Attractive valuation with a 1.7 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 71.27%, its profits have risen by 157.1% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you hold?
- 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
70.76%
1.20
59.33%
Sensex
-5.83%
-0.44
13.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.01%
EBIT Growth (5y)
70.32%
EBIT to Interest (avg)
1.85
Debt to EBITDA (avg)
3.48
Net Debt to Equity (avg)
0.91
Sales to Capital Employed (avg)
1.56
Tax Ratio
24.55%
Dividend Payout Ratio
31.61%
Pledged Shares
0
Institutional Holding
2.24%
ROCE (avg)
6.96%
ROE (avg)
5.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
36
Price to Book Value
2.30
EV to EBIT
20.45
EV to EBITDA
11.23
EV to Capital Employed
1.68
EV to Sales
1.01
PEG Ratio
0.20
Dividend Yield
0.38%
ROCE (Latest)
8.22%
ROE (Latest)
7.22%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
PAT(Latest six months)
At Rs 21.88 cr has Grown at 131.70%
ROCE(HY)
Highest at 8.79%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.03 times
NET SALES(Q)
Highest at Rs 677.49 cr
-17What is not working for the Company
PAT(Q)
At Rs 5.99 cr has Fallen at -58.6% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 2.92 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 15.63 cr
INTEREST(Q)
Highest at Rs 16.39 cr
PBDIT(Q)
Lowest at Rs 47.80 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 7.06%
PBT LESS OI(Q)
Lowest at Rs 6.01 cr.
NON-OPERATING INCOME(Q)
is 40.38 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.44
Loading Valuation Snapshot...
Here's what is working for Rico Auto Inds
Net Sales - Quarterly
Highest at Rs 677.49 cr
in the last five quartersMOJO 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 periodsMOJO 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 6.01 cr has Fallen at -67.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 18.40 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 5.99 cr has Fallen at -58.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 14.46 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 16.39 cr has Grown at 25.59%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 2.92 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 16.39 cr
in the last five quarters and Increased by 25.59 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 47.80 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 7.06%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 6.01 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 40.38 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.44
in the last five quartersMOJO 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 periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 4.07 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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