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Rico Auto Industries Limited (IN:RICOAUTO)
:RICOAUTO
India Market
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Rico Auto Industries Limited (RICOAUTO) AI Stock Analysis

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IN:RICOAUTO

Rico Auto Industries Limited

(RICOAUTO)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
₹87.00
▲(1.91% Upside)
Rico Auto Industries Limited's overall stock score is primarily influenced by financial performance concerns, particularly in profitability and leverage. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is expensive. These factors collectively contribute to a moderate overall score.

Rico Auto Industries Limited (RICOAUTO) vs. iShares MSCI India ETF (INDA)

Rico Auto Industries Limited Business Overview & Revenue Model

Company DescriptionRico Auto Industries Limited, an engineering company, manufactures and supplies high precision fully machined aluminum, and ferrous components and assemblies to automotive original equipment manufacturers worldwide. Its integrated services include the design, development, tooling, casting, machining, assembly, and research and development of aluminum and ferrous products. The company offers oil pump assemblies, fuel system parts, lube oil filter heads, exhaust manifolds, turbine housings, center housings, back plates, crank cases and covers, cylinder head covers, oil pans, intake manifold covers, front covers, valve covers, side covers, balance shafts assemblies, gear housings, and main bearing caps, as well as water, air connections, and pressure plates. It also provides flywheels, timing cases, oil filter adaptors, engine brackets, cylinder blocks, cylinder heads, clutch assemblies, automatic transmission bracket assemblies, differential case housings, gear shifts forks, wheel hubs assemblies, brake panel assemblies, brake discs, drums, and steering knuckles. In addition, the company offers tank track shoe, fuze body, and fuze assembly products, as well as aluminum alloy wheels. It serves two wheeler, three wheeler, passenger car, and commercial vehicle customers, as well as system suppliers. Rico Auto Industries Limited was incorporated in 1983 and is based in Gurugram, India.
How the Company Makes MoneyRico Auto Industries Limited generates revenue primarily through the manufacturing and supply of automotive components to leading OEMs in the automotive industry. The company's key revenue streams include the sale of engine and transmission parts, vehicle assemblies, and other precision-engineered components. Rico Auto benefits from long-term contracts and partnerships with major automotive manufacturers, which ensure a steady demand for its products. Additionally, the company's commitment to research and development allows it to innovate and expand its product offerings, thus enhancing its market position and revenue potential.

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
65
Positive
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue22.16B22.12B21.60B23.02B18.48B14.59B
Gross Profit5.94B2.14B2.28B6.74B5.20B4.43B
EBITDA2.10B2.00B2.31B2.44B1.76B872.30M
Net Income320.40M214.00M383.40M510.10M237.10M-141.80M
Balance Sheet
Total Assets0.0020.02B18.95B19.36B17.95B16.44B
Cash, Cash Equivalents and Short-Term Investments199.00M195.40M208.10M348.90M257.30M174.60M
Total Debt0.006.97B6.88B7.54B6.13B5.54B
Total Liabilities-7.33B12.69B11.72B12.46B11.61B10.35B
Stockholders Equity7.33B7.30B7.20B6.89B6.34B6.06B
Cash Flow
Free Cash Flow0.00-259.10M766.60M-404.30M124.10M-1.01B
Operating Cash Flow0.001.33B2.47B1.60B2.16B226.80M
Investing Cash Flow0.00-1.28B-1.03B-2.33B-1.99B-1.02B
Financing Cash Flow0.00-32.90M-1.53B773.00M-244.40M798.10M

Rico Auto Industries Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price85.37
Price Trends
50DMA
92.94
Negative
100DMA
84.34
Positive
200DMA
78.20
Positive
Market Momentum
MACD
-2.49
Positive
RSI
33.38
Neutral
STOCH
16.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RICOAUTO, the sentiment is Negative. The current price of 85.37 is below the 20-day moving average (MA) of 93.16, below the 50-day MA of 92.94, and above the 200-day MA of 78.20, indicating a neutral trend. The MACD of -2.49 indicates Positive momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RICOAUTO.

Rico Auto Industries Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹20.16B20.250.75%-1.59%-75.34%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
60
Neutral
₹9.42B9.710.98%-0.97%-9.33%
51
Neutral
₹11.55B36.050.59%2.34%-15.64%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RICOAUTO
Rico Auto Industries Limited
85.37
-13.59
-13.73%
IN:HUHTAMAKI
Huhtamaki India Limited
266.90
-124.55
-31.82%
IN:OSWALGREEN
Oswal Greentech Ltd.
38.11
-11.10
-22.56%
IN:RAJPALAYAM
Rajapalayam Mills Limited
880.00
-89.27
-9.21%
IN:UTTAMSUGAR
Uttam Sugar Mills Limited
247.10
-77.90
-23.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 15, 2025