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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Rico Auto Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:10 pm

Market Cap 1,157 Cr.
Current Price 85.6
High / Low157/82.1
Stock P/E30.1
Book Value 53.3
Dividend Yield0.70 %
ROCE8.18 %
ROE5.55 %
Face Value 1.00
PEG Ratio1.66

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Rico Auto Industries Ltd

Competitors of Rico Auto Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Hardy Ltd 150 Cr. 1,0001,144/38029.1 1720.25 %27.6 %23.3 % 10.0
Rico Auto Industries Ltd 1,157 Cr. 85.6157/82.130.1 53.30.70 %8.18 %5.55 % 1.00
Rane (Madras) Ltd 1,310 Cr. 8051,529/624335 1580.00 %6.36 %43.7 % 10.0
Automotive Axles Ltd 2,643 Cr. 1,7492,398/1,72017.2 5931.83 %26.7 %20.2 % 10.0
Industry Average1,315.00 Cr909.90102.85244.080.70%17.21%23.19%7.75

All Competitor Stocks of Rico Auto Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales483395478473514563584548603534554524548
Expenses442366437429471516531494536483500465489
Operating Profit41294144434753546751545859
OPM %8%7%8%9%8%8%9%10%11%9%10%11%11%
Other Income6143541562343
Interest9101111111110161515141613
Depreciation23222222252626293130303028
Profit before tax14-1111313151814278131621
Tax %27%-13%40%27%35%29%56%31%4%29%50%34%21%
Net Profit11-17991081026661016
EPS in Rs0.78-0.090.490.700.640.760.590.701.910.420.500.741.15

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,5061,4801,3461,0071,0381,2091,3931,4011,4701,8602,3022,160
Expenses1,3891,3321,2499089271,0781,2491,2871,3811,7022,0811,938
Operating Profit117149979911113114411489158221222
OPM %8%10%7%10%11%11%10%8%6%8%10%10%
Other Income5326227101512131614131812
Interest696753201719273139425458
Depreciation87948547465458808091112118
Profit before tax14131874163707219-16387457
Tax %61%79%18%28%18%17%29%12%12%37%31%32%
Net Profit531543052585117-14245139
EPS in Rs0.400.2511.342.183.814.273.731.23-1.051.753.622.83
Dividend Payout %38%40%26%28%20%19%21%24%-19%23%21%21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-40.00%5033.33%-80.52%73.33%11.54%-12.07%-66.67%-182.35%271.43%112.50%-23.53%
Change in YoY Net Profit Growth (%)0.00%5073.33%-5113.85%153.85%-61.79%-23.61%-54.60%-115.69%453.78%-158.93%-136.03%

Rico Auto Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:9%
3 Years:14%
TTM:-2%
Compounded Profit Growth
10 Years:31%
5 Years:-7%
3 Years:79%
TTM:-21%
Stock Price CAGR
10 Years:7%
5 Years:12%
3 Years:26%
1 Year:-11%
Return on Equity
10 Years:6%
5 Years:4%
3 Years:6%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:46 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital14141414141414141414141414
Reserves331335437457510550602607592620676707707
Borrowings499349186227236272379418554599754688726
Other Liabilities378472241205200234323381477548492479585
Total Liabilities1,2211,1708789029601,0691,3171,4201,6361,7811,9361,8872,031
Fixed Assets6786723993884284526056927338251,0191,0701,103
CWIP513534704463806363887989103
Investments0048627260002244
Other Assets492463397439460528632665840865835725821
Total Assets1,2211,1708789029601,0691,3171,4201,6361,7811,9361,8872,031

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +213291-2135758612811723216160247
Cash from Investing Activity +-156-72246-13-68-78-180-132-100-198-228-102
Cash from Financing Activity +-53-221-231-22-8-169280-2477-153
Net Cash Flow5-2-61-1716-132-69-8

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-382.00-200.00-89.00-128.00-125.00-141.00-235.00-304.00-465.00-441.00-533.00-466.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days394140525869716987716356
Inventory Days65655089787579911201007584
Days Payable781106596919295125164153104110
Cash Conversion Cycle26-325454552553643173430
Working Capital Days6-2419444845444167424240
ROCE %8%10%6%10%11%12%12%6%2%7%10%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters50.32%50.32%50.32%50.32%50.32%50.33%50.33%50.33%50.33%50.33%50.33%50.33%
FIIs0.45%0.73%0.71%1.03%1.43%1.14%1.95%1.12%1.11%1.84%1.28%1.49%
DIIs0.96%0.96%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public48.27%47.99%48.96%48.64%48.23%48.52%47.72%48.55%48.56%47.82%48.39%48.17%
No. of Shareholders73,26873,05372,80870,33166,43267,01667,06776,19578,68398,1861,11,1441,12,187

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.883.621.75-1.051.23
Diluted EPS (Rs.)2.883.621.75-1.051.23
Cash EPS (Rs.)11.6412.048.454.887.11
Book Value[Excl.RevalReserv]/Share (Rs.)53.2251.1246.8645.0046.11
Book Value[Incl.RevalReserv]/Share (Rs.)53.2251.1246.8645.0046.11
Revenue From Operations / Share (Rs.)159.63170.17137.46108.64103.55
PBDIT / Share (Rs.)17.5017.7813.077.9210.09
PBIT / Share (Rs.)8.749.526.382.004.20
PBT / Share (Rs.)4.245.442.81-1.181.40
Net Profit / Share (Rs.)2.883.771.76-1.041.23
NP After MI And SOA / Share (Rs.)2.833.621.75-1.051.23
PBDIT Margin (%)10.9610.459.517.289.73
PBIT Margin (%)5.475.594.641.844.06
PBT Margin (%)2.653.192.04-1.081.34
Net Profit Margin (%)1.802.211.27-0.951.19
NP After MI And SOA Margin (%)1.772.121.27-0.961.18
Return on Networth / Equity (%)5.327.103.73-2.342.67
Return on Capital Employeed (%)10.8111.569.893.016.47
Return On Assets (%)2.022.531.31-0.861.16
Long Term Debt / Equity (X)0.420.540.270.390.33
Total Debt / Equity (X)0.901.060.890.730.60
Asset Turnover Ratio (%)1.131.230.970.870.90
Current Ratio (X)0.870.930.820.981.02
Quick Ratio (X)0.520.590.510.620.68
Inventory Turnover Ratio (X)4.394.764.534.445.28
Dividend Payout Ratio (NP) (%)26.4711.0411.44-29.5432.59
Dividend Payout Ratio (CP) (%)6.473.362.376.355.62
Earning Retention Ratio (%)73.5388.9688.56129.5467.41
Cash Earning Retention Ratio (%)93.5396.6497.6393.6594.38
Interest Coverage Ratio (X)4.074.454.192.774.37
Interest Coverage Ratio (Post Tax) (X)1.711.961.710.741.75
Enterprise Value (Cr.)2600.991608.46969.52910.57630.27
EV / Net Operating Revenue (X)1.200.690.520.610.44
EV / EBITDA (X)10.996.685.488.504.62
MarketCap / Net Operating Revenue (X)0.900.390.220.320.19
Retention Ratios (%)73.5288.9588.55129.5467.40
Price / BV (X)2.731.320.670.790.43
Price / Net Operating Revenue (X)0.900.390.220.320.19
EarningsYield0.010.050.05-0.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Rico Auto Industries Ltd as of November 24, 2024 is: 89.66

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Rico Auto Industries Ltd is Undervalued by 4.74% compared to the current share price 85.60

Intrinsic Value of Rico Auto Industries Ltd as of November 24, 2024 is: 105.92

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Rico Auto Industries Ltd is Undervalued by 23.74% compared to the current share price 85.60

Last 5 Year EPS CAGR: 18.13%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (548.54 cr) compared to borrowings (452.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.17 cr) and profit (52.67 cr) over the years.
  1. The stock has a low average ROCE of 8.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 34.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 33.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rico Auto Industries Ltd:
    1. Net Profit Margin: 1.8%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.81% (Industry Average ROCE: 17.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.32% (Industry Average ROE: 23.19%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.52
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 30.1 (Industry average Stock P/E: 102.85)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.9
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Rico Auto Industries Ltd. is a Public Limited Listed company incorporated on 07/03/1983 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L34300HR1983PLC023187 and registration number is 023187. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 1603.08 Cr. and Equity Capital is Rs. 13.53 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Dr. Trans & Steer - Others38 KM Stone, Gurgaon Haryana 122001cs@ricoauto.in
http://www.ricoauto.in
Management
NamePosition Held
Mr. Arvind KapurChairman & M.D & CEO
Mr. Kaushalendra VermaExecutive Director
Mr. Rajiv Miglani KumarExecutive Director
Mr. Samarth KapurExecutive Director
Mr. Shikha KapurNon Executive Director
Mr. Hemal Bharat KhandwalaIndependent Director
Dr. Amarjit ChopraIndependent Director
Dr. Ashok SethIndependent Director
Mr. Satish SekhriIndependent Director
Mr. Rajeev KapoorIndependent Director
Mr. Vinod Kumar NagarIndependent Director
Ms. Sarita KapurIndependent Director
Mr. Yogesh KapurIndependent Director
Mr. Kanwal MongaIndependent Director

FAQ

What is the latest intrinsic value of Rico Auto Industries Ltd?

The latest intrinsic value of Rico Auto Industries Ltd as on 24 November 2024 is ₹89.66, which is 4.74% higher than the current market price of ₹85.60.

What is the Market Cap of Rico Auto Industries Ltd?

The Market Cap of Rico Auto Industries Ltd is 1,157 Cr..

What is the current Stock Price of Rico Auto Industries Ltd as on 24 November 2024?

The current stock price of Rico Auto Industries Ltd as on 24 November 2024 is 85.6.

What is the High / Low of Rico Auto Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rico Auto Industries Ltd stocks is 157/82.1.

What is the Stock P/E of Rico Auto Industries Ltd?

The Stock P/E of Rico Auto Industries Ltd is 30.1.

What is the Book Value of Rico Auto Industries Ltd?

The Book Value of Rico Auto Industries Ltd is 53.3.

What is the Dividend Yield of Rico Auto Industries Ltd?

The Dividend Yield of Rico Auto Industries Ltd is 0.70 %.

What is the ROCE of Rico Auto Industries Ltd?

The ROCE of Rico Auto Industries Ltd is 8.18 %.

What is the ROE of Rico Auto Industries Ltd?

The ROE of Rico Auto Industries Ltd is 5.55 %.

What is the Face Value of Rico Auto Industries Ltd?

The Face Value of Rico Auto Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rico Auto Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE