Rico Auto Industries Limited (RICOAUTO) AI Stock Analysis

• Market Cap: ₹11.21B
• Dividend Yield: 0.41%
• Average Volume (3M): 148.19K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.80
• Revenue Growth: 3.68%
• EPS Growth: 14.13%
• Country: IN
• Employees: 2,401
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Auto - Parts
• EPS (TTM): 1.28
• Shares Outstanding: 135,284,990
• 10 Day Avg. Volume: 56,320
• 30 Day Avg. Volume: 148,195
• PEG Ratio: -0.88
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -32.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹117.00 ▼(-3.39% Downside)

Rico Auto Industries Limited's stock score is primarily influenced by its strong technical momentum, despite overbought signals. Financial performance is a concern due to declining profit margins and high leverage. The valuation suggests the stock might be overvalued, with a high P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for products, supporting long-term business sustainability and expansion.

Operational Efficiency

Strong operational cash generation enhances the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

Strategic Partnerships

Strategic partnerships expand market reach and foster innovation, contributing to competitive advantage and long-term growth potential.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in cost management, which may hinder the company's ability to generate sustainable profits and reinvest in growth.

High Debt Levels

Substantial leverage increases financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests challenges in sustaining capital investments without external funding, impacting long-term financial health and growth capacity.

Rico Auto Industries Limited Business Overview & Revenue Model

Company Description

Rico Auto Industries Limited (RICOAUTO) is a leading player in the automotive components sector, specializing in the manufacturing of high-quality auto parts and accessories for a diverse range of vehicles. The company operates in various sectors, including automotive, two-wheelers, and commercial vehicles, providing products such as fuel tanks, body panels, and precision-engineered components. With a strong focus on innovation and quality, RICOAUTO aims to meet the evolving needs of its global clientele.

How the Company Makes Money

Rico Auto Industries Limited generates revenue primarily through the sale of its automotive components to OEMs (original equipment manufacturers) and aftermarket clients. The company has established long-term contracts with several major automotive manufacturers, which provide a stable income stream. Key revenue streams include the sale of metal and plastic components, as well as specialized services such as design and engineering solutions for custom parts. Additionally, RICOAUTO benefits from strategic partnerships with various automotive companies that enhance its market presence and lead to increased sales. The company's investment in research and development also contributes to its ability to innovate and offer competitive products, thereby driving revenue growth.

Rico Auto Industries Limited Financial Statement Overview

Summary

Rico Auto Industries Limited shows strengths in revenue growth and operational cash generation, but profitability and leverage remain concerns. The decline in profit margins and high debt levels could pose risks, especially in volatile economic conditions. While there are strengths in operational efficiency, the company needs to focus on improving profitability and managing debt to enhance financial health.

Income Statement

Rico Auto Industries Limited has shown consistent revenue growth over the years, but recent performance indicates a decline with a 2.2% drop in revenue for 2025 compared to 2024. Gross profit margins have decreased, and net profit margins are low at 0.97% for 2025, reflecting challenges in cost management and profitability. The EBIT margin has also decreased, indicating pressure on operating income. Despite these challenges, the company has maintained EBITDA margins above 9%.

Balance Sheet

The company has a high debt-to-equity ratio of 0.96 in 2025, indicating substantial leverage which could pose financial risks. The equity ratio stands at 36.5%, suggesting a moderate reliance on equity financing. Return on equity has decreased significantly to 2.93%, highlighting potential inefficiencies in generating returns for shareholders. Overall, the balance sheet reflects moderate stability with concerns about leverage.

Cash Flow

Rico Auto's cash flow situation has weakened, with a negative free cash flow in 2025, indicating that capital expenditures have outpaced operating cash inflow. The operating cash flow to net income ratio remains strong, showing that operational performance can cover net income. However, negative free cash flow suggests challenges in sustaining capital investments without external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.16B	22.12B	21.60B	23.02B	18.48B	14.59B
Gross Profit	5.94B	2.14B	2.28B	6.74B	5.20B	4.43B
EBITDA	2.10B	2.00B	2.31B	2.44B	1.76B	985.70M
Net Income	320.40M	214.00M	383.40M	510.10M	237.10M	-141.80M
Balance Sheet
Total Assets	0.00	20.02B	18.95B	19.36B	17.95B	16.44B
Cash, Cash Equivalents and Short-Term Investments	199.00M	195.40M	208.10M	348.90M	257.30M	174.60M
Total Debt	0.00	6.97B	6.88B	7.54B	6.13B	5.54B
Total Liabilities	-7.33B	12.69B	11.72B	12.46B	11.61B	10.35B
Stockholders Equity	7.33B	7.30B	7.20B	6.89B	6.34B	6.06B
Cash Flow
Free Cash Flow	0.00	-259.10M	766.60M	-404.30M	124.10M	-1.01B
Operating Cash Flow	0.00	1.33B	2.47B	1.60B	2.16B	226.80M
Investing Cash Flow	0.00	-1.28B	-1.03B	-2.33B	-1.99B	-1.02B
Financing Cash Flow	0.00	-32.90M	-1.53B	773.00M	-244.40M	798.10M

Rico Auto Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RICOAUTO, the sentiment is Positive. The current price of 121.1 is above the 20-day moving average (MA) of 98.84, above the 50-day MA of 94.85, and above the 200-day MA of 79.33, indicating a bullish trend. The MACD of 6.06 indicates Negative momentum. The RSI at 73.03 is Negative, neither overbought nor oversold. The STOCH value of 57.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RICOAUTO.

Rico Auto Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUHTAMAKI	66 Neutral	₹18.66B	18.74	―	0.91%	-1.59%	-75.34%
UTTAMSUGAR	65 Neutral	₹9.03B	8.02	―	1.08%	19.83%	46.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RICOAUTO	61 Neutral	₹11.21B	34.99	―	0.41%	3.68%	14.13%

Rico Auto Industries Limited Corporate Events

Rico Auto Industries Announces AGM and E-Voting Details

Rico Auto Industries Limited has announced the publication of its Notice of AGM, Book Closure, and E-voting information in prominent newspapers, including Business Standard and Veer Arjun. This announcement signifies the company’s commitment to transparency and regulatory compliance, providing stakeholders with essential information regarding upcoming corporate governance activities.

Rico Auto Industries Releases Q1 FY26 Earnings Call Transcript

Rico Auto Industries Limited has released the transcript of its Q1 FY26 earnings conference call held on August 13, 2025. The call, which involved key management figures including the Chairman and CEO, Arvind Kapur, provided insights into the company’s financial performance and strategic direction. This release is significant for investors and stakeholders as it offers a detailed view of the company’s current operations and future prospects.