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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rico Auto Industries Ltd

About the Company - Rico Auto Industries Ltd

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. 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

Rico Auto Industries Ltd. Share Price Update

Share PriceValue
Today₹92.70
Previous Day₹95.45

Basic Stock Data of Rico Auto Industries Ltd

Market Cap 1,760 Cr.
Current Price 130
High / Low130/63.0
Stock P/E35.5
Book Value 51.4
Dividend Yield0.58 %
ROCE9.50 %
ROE7.36 %
Face Value 1.00

Data Source: screener.in

Competitors of Rico Auto Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Automotive Axles Ltd 3,038 Cr. 2,0102,693/1,87517.6 5251.59 %30.8 %23.4 % 10.0
Rane (Madras) Ltd 1,237 Cr. 760990/3869.44 1570.00 %12.2 %14.8 % 10.0
Industry Average2,137.50 Cr1,385.0013.52341.000.80%21.50%19.10%10.00

Rico Auto Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales397.47445.91483.17395.46477.70473.22514.50563.38584.36548.27602.98533.91553.89
Expenses374.85406.74442.39366.35437.13429.49471.01516.00530.97494.38536.09483.40499.69
Operating Profit22.6239.1740.7829.1140.5743.7343.4947.3853.3953.8966.8950.5154.20
OPM %5.69%8.78%8.44%7.36%8.49%9.24%8.45%8.41%9.14%9.83%11.09%9.46%9.79%
Other Income2.573.215.721.323.852.995.114.071.175.036.112.482.80
Interest10.4210.258.709.8010.6411.3710.6611.119.9816.1415.0715.0713.79
Depreciation20.4123.3123.3121.7022.4622.4324.6725.6926.3828.7730.9329.9030.38
Profit before tax-5.648.8214.49-1.0711.3212.9213.2714.6518.2014.0127.008.0212.83
Tax %20.39%49.09%26.85%-13.08%40.11%26.63%34.82%29.42%56.21%31.48%4.04%28.80%49.81%
Net Profit-4.494.4910.60-1.216.789.488.6510.347.979.6025.915.716.44
EPS in Rs-0.350.320.78-0.090.490.700.640.760.590.701.910.420.50

Rico Auto Industries Ltd Quarterly Chart

Rico Auto Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5051,5061,4801,3461,0071,0381,2091,3931,4011,4701,8602,3022,214
Expenses1,3781,3891,3321,2499089271,0781,2491,2871,3811,7022,0811,984
Operating Profit127117149979911113114411489158221230
OPM %8%8%10%7%10%11%11%10%8%6%8%10%10%
Other Income495326227101512131614131815
Interest70696753201719273139425460
Depreciation7187948547465458808091112121
Profit before tax3514131874163707219-16387464
Tax %35%61%79%18%28%18%17%29%12%12%37%31%
Net Profit22531543052585117-14245149
EPS in Rs1.660.400.2511.342.183.814.273.731.23-1.051.753.623.57
Dividend Payout %9%38%40%26%28%20%19%21%24%-19%23%21%

Rico Auto Industries Ltd Profit & Loss Yearly Chart

Rico Auto Industries Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:14%
3 Years:18%
TTM:0%
Compounded Profit Growth
10 Years:45%
5 Years:-5%
3 Years:33%
TTM:34%
Stock Price CAGR
10 Years:26%
5 Years:11%
3 Years:34%
1 Year:43%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:3%
Last Year:7%

Rico Auto Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141414141414141414141414
Reserves328331335437457510550602607592620676682
Borrowings479499349186227236272379418554599754725
Other Liabilities332378472241205200234323381477548492504
Total Liabilities1,1531,2211,1708789029601,0691,3171,4201,6361,7811,9361,924
Fixed Assets5606786723993884284526056927338251,0191,039
CWIP85513534704463806363887978
Investments0004862726000222
Other Assets508492463397439460528632665840865835805
Total Assets1,1531,2211,1708789029601,0691,3171,4201,6361,7811,9361,924

Rico Auto Industries Ltd Reserves and Borrowings Chart

Rico Auto Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 112213291-2135758612811723216160
Cash from Investing Activity -33-156-72246-13-68-78-180-132-100-198-228
Cash from Financing Activity -92-53-221-231-22-8-169280-2477
Net Cash Flow-135-2-61-1716-132-69

Rico Auto Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days463941405258697169877163
Inventory Days71656550897875799112010075
Days Payable77781106596919295125164153104
Cash Conversion Cycle4026-3254545525536431734
Working Capital Days226-24194448454441674242
ROCE %9%8%10%6%10%11%12%12%6%2%7%10%

Rico Auto Industries Ltd Financial Efficiency Indicators Chart

Rico Auto Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters50.30%50.32%50.32%50.32%50.32%50.32%50.32%50.32%50.32%50.33%50.33%50.33%
FIIs0.07%0.07%0.07%0.30%0.45%0.73%0.71%1.03%1.43%1.14%1.95%1.12%
DIIs1.32%0.96%0.92%1.87%0.96%0.96%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%
Public48.32%48.65%48.69%47.50%48.27%47.99%48.96%48.64%48.23%48.52%47.72%48.55%
No. of Shareholders68,20066,25673,11573,95473,26873,05372,80870,33166,43267,01667,06776,195

Rico Auto Industries Ltd Shareholding Pattern Chart

No. of Rico Auto Industries Ltd Shareholders

This stock is not held by any mutual fund

Rico Auto Industries Ltd ROCE Trend

Rico Auto Industries Ltd EPS Trend

Rico Auto Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.621.75-1.051.233.73
Diluted EPS (Rs.)3.621.75-1.051.233.73
Cash EPS (Rs.)12.048.454.887.117.80
Book Value[Excl.RevalReserv]/Share (Rs.)51.1246.8645.0046.1145.81
Book Value[Incl.RevalReserv]/Share (Rs.)51.1246.8645.0046.1145.81
Revenue From Operations / Share (Rs.)170.17137.46108.64103.55102.93
PBDIT / Share (Rs.)17.7813.077.9210.0912.05
PBIT / Share (Rs.)9.526.382.004.207.79
PBT / Share (Rs.)5.442.81-1.181.405.10
Net Profit / Share (Rs.)3.771.76-1.041.233.54
NP After MI And SOA / Share (Rs.)3.621.75-1.051.233.73
PBDIT Margin (%)10.459.517.289.7311.70
PBIT Margin (%)5.594.641.844.067.56
PBT Margin (%)3.192.04-1.081.344.95
Net Profit Margin (%)2.211.27-0.951.193.43
NP After MI And SOA Margin (%)2.121.27-0.961.183.62
Return on Networth / Equity (%)7.103.73-2.342.678.20
Return on Capital Employeed (%)11.569.893.016.4712.73
Return On Assets (%)2.531.31-0.861.163.80
Long Term Debt / Equity (X)0.540.270.390.330.26
Total Debt / Equity (X)1.060.890.730.600.52
Asset Turnover Ratio (%)1.230.970.870.901.06
Current Ratio (X)0.930.820.981.021.07
Quick Ratio (X)0.590.510.620.680.74
Inventory Turnover Ratio (X)4.764.534.445.287.12
Dividend Payout Ratio (NP) (%)11.0411.44-29.5432.5921.41
Dividend Payout Ratio (CP) (%)3.362.376.355.629.99
Earning Retention Ratio (%)88.9688.56129.5467.4178.59
Cash Earning Retention Ratio (%)96.6497.6393.6594.3890.01
Interest Coverage Ratio (X)4.454.192.774.376.09
Interest Coverage Ratio (Post Tax) (X)1.961.710.741.753.15
Enterprise Value (Cr.)1608.46969.52910.57630.271162.13
EV / Net Operating Revenue (X)0.690.520.610.440.83
EV / EBITDA (X)6.685.488.504.627.13
MarketCap / Net Operating Revenue (X)0.390.220.320.190.61
Retention Ratios (%)88.9588.55129.5467.4078.58
Price / BV (X)1.320.670.790.431.39
Price / Net Operating Revenue (X)0.390.220.320.190.61
EarningsYield0.050.05-0.020.060.05

Rico Auto Industries Ltd Profitability Ratios (%)

Rico Auto Industries Ltd Liquidity Ratios

Rico Auto Industries Ltd Liquidity Ratios (%)

Rico Auto Industries Ltd Interest Coverage Ratios (X)

Rico Auto Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rico Auto Industries Ltd

Fair Value: ₹135.08

The stock is undervalued by 3.91% compared to the current price ₹130

*Investments are subject to market risks

Strength and Weakness of Rico Auto Industries Ltd

StrengthWeakness
  1. The company has higher reserves (517.46 cr) compared to borrowings (436.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.15 cr) and profit (51.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.98 and average Dividend Yield of 4.74%.
  2. The stock has a low average ROCE of 8.58%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 33.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 34.58, which may not be favorable.

Should I Buy Rico Auto Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rico Auto Industries Ltd:
    1. Net Profit Margin: 2.21%
      • 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: 11.56% (Industry Average ROCE: 21.5%)
      • 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. Interest Coverage Ratio (Post Tax): 1.96
      • 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.
    4. Quick Ratio: 0.59
      • 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.
    5. ✗ Stock P/E: 27.2 (Industry average Stock P/E: 13.01)
      • 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.
    6. ✗ Total Debt / Equity: 1.06
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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