Rico Auto Industries Limited (RICOAUTO) AI Stock Analysis

• Market Cap: ₹10.24B
• Dividend Yield: 0.75%
• Average Volume (3M): 31.59K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.62
• Revenue Growth: 2.34%
• EPS Growth: -15.97%
• Country: IN
• Employees: 2,401
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Auto - Parts
• EPS (TTM): 1.21
• Shares Outstanding: 135,284,990
• 10 Day Avg. Volume: 19,532
• 30 Day Avg. Volume: 31,590
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹77.00
• Price Target Upside: -3.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹77.00 ▼(-3.42% Downside)

Rico Auto Industries Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company's financials show strengths in revenue growth but are weighed down by profitability and leverage concerns. Technical indicators suggest a neutral to slightly bearish trend. The valuation indicates the stock may be overvalued, with a high P/E ratio and low dividend yield. These factors combined result in a moderate overall stock score.

Rico Auto Industries Limited Business Overview & Revenue Model

Company Description

Rico Auto Industries Limited (RICOAUTO) is a prominent Indian automotive components manufacturer specializing in the production of high-precision engineering components. The company operates in the automotive sector, providing a diverse range of products including engine and transmission components, vehicle assemblies, and various other automotive parts. With a strong focus on quality and innovation, Rico Auto Industries serves major original equipment manufacturers (OEMs) both in India and internationally.

How the Company Makes Money

Rico 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

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.12B	23.02B	21.60B	18.04B	14.34B
Gross Profit	2.14B	6.74B	2.28B	5.20B	4.43B
EBITDA	2.00B	2.44B	2.31B	1.76B	1.01B
Net Income	214.00M	510.10M	383.40M	237.10M	-141.80M
Balance Sheet
Total Assets	20.02B	19.36B	18.95B	17.95B	16.44B
Cash, Cash Equivalents and Short-Term Investments	199.00M	451.70M	208.10M	97.70M	174.60M
Total Debt	6.97B	7.54B	6.88B	5.99B	5.43B
Total Liabilities	12.69B	12.46B	11.72B	11.61B	10.35B
Stockholders Equity	7.30B	6.89B	7.20B	6.34B	6.06B
Cash Flow
Free Cash Flow	-259.10M	-404.30M	766.60M	124.10M	-1.01B
Operating Cash Flow	1.33B	1.60B	2.47B	2.16B	226.80M
Investing Cash Flow	-1.28B	-2.33B	-1.03B	-1.99B	-1.02B
Financing Cash Flow	-32.90M	773.00M	-1.53B	-244.40M	798.10M

Rico Auto Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 79.73 is above the 20-day moving average (MA) of 72.31, above the 50-day MA of 75.36, and above the 200-day MA of 77.34, indicating a bullish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 60.67 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
UTTAMSUGAR	66 Neutral	₹9.40B	10.64		1.01%	-9.82%	-33.21%
HUHTAMAKI	63 Neutral	₹16.09B	21.60		0.96%	-0.87%	-82.44%
Sector *	63 Neutral	$21.01B	14.53	-7.26%	3.13%	3.36%	-7.91%
RICOAUTO	54 Neutral	₹10.24B	32.09		0.75%	2.34%	-15.97%