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Rico Auto Industries Ltd logo

Rico Auto Industries Ltd

NSE: RICOAUTO BSE: 520008

132.22

(0.75%)

Thu, 05 Mar 2026, 10:27 am

Rico Auto Industries Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (5x coverage).
  • Rico Auto Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Rico Auto Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

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    Cons

    • Rico Auto Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Rico Auto Industries's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
    • Rico Auto Industries's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Rico Auto Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Rico Auto Industries is profitable, therefore cash runway is not a concern.
    • Rico Auto Industries is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (39.2%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1.5x debt.
    • Rico Auto Industries's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (92.4% vs 58% today).
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    Cons

    • Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
    • Rico Auto Industries's level of debt (58%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The average tenure for the Rico Auto Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
    • Arvind's compensation has been consistent with company performance over the past year, both up more than 20%.
    • More shares have been bought than sold by Rico Auto Industries individual insiders in the past 3 months.
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    Cons

    • Arvind's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • Rico Auto Industries is covered by less than 3 analysts.
      • Rico Auto Industries has significant price volatility in the past 3 months.

      past

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      Pros

      • Rico Auto Industries has delivered over 20% year on year earnings growth in the past 5 years.
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      Cons

      • Rico Auto Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Rico Auto Industries used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
      • Rico Auto Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Rico Auto Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Rico Auto Industries's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

      value

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      Pros

      • Rico Auto Industries is good value based on assets compared to the IN Auto Components industry average.
      • BSE:520008 is up 22% outperforming the Auto Components industry which returned 13.2% over the past month.
      • BSE:520008 is up 22% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Rico Auto Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Rico Auto Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Rico Auto Industries is overvalued based on earnings compared to the IN Auto Components industry average.
      • Rico Auto Industries is overvalued based on earnings compared to the India market.
      • 520008 underperformed the Auto Components industry which returned -22.4% over the past year.
      • 520008 underperformed the Market in India which returned -14.5% over the past year.

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