Rico Auto Industries Limited (RICOAUTO) AI Stock Analysis

• Market Cap: ₹17.24B
• Dividend Yield: 0.39%
• Average Volume (3M): 148.19K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 2.14
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹144.00 ▲(5.19% Upside)

The score is primarily held back by weaker financial quality (thin and declining margins, higher leverage, and negative free cash flow). This is partially offset by strong technical momentum and trend strength, while valuation is a meaningful headwind due to the high P/E and minimal dividend yield.

Positive Factors

Strategic Partnerships

Strategic partnerships bolster Rico Auto's market position, providing access to new markets and customers, which can drive long-term revenue growth and competitive advantage.

Innovation and R&D

R&D investments enable Rico Auto to innovate and offer competitive products, ensuring it meets evolving customer needs and maintains a strong market position.

Stable Income Stream

Long-term contracts with OEMs ensure a stable revenue base, reducing volatility and providing financial predictability, which supports strategic planning and investment.

Negative Factors

Declining Margins

Declining margins indicate challenges in cost management and competitive pricing pressures, which can impact long-term profitability and financial health.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests challenges in sustaining capital investments without external funding, which may constrain growth and operational initiatives.

Rico Auto Industries Limited Business Overview & Revenue Model

Company Description

Rico 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 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: 136.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 136.9 is above the 20-day moving average (MA) of 128.37, above the 50-day MA of 112.97, and above the 200-day MA of 87.38, indicating a neutral trend. The MACD of 5.16 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 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	₹15.17B	15.24	―	0.95%	-1.59%	-75.34%
UTTAMSUGAR	64 Neutral	₹8.99B	7.98	―	0.95%	19.83%	46.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RICOAUTO	60 Neutral	₹17.24B	40.11	―	0.39%	3.68%	14.13%

Rico Auto Industries Limited Corporate Events

Rico Auto Closes Trading Window Ahead of December Quarter Results

Rico Auto Industries Limited has announced that its trading window for dealing in the company’s securities will be closed from 1 January 2026 until 48 hours after the declaration of its financial results for the quarter and nine months ended 31 December 2025, in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. The company will notify the date of the board meeting to approve these results in due course, and during the closure period all promoters, directors, designated persons, connected persons and their immediate relatives are barred from trading in the company’s shares, underscoring its adherence to regulatory norms on insider-trading prevention.