Rico Auto Industries Ltd - Stock Valuation and Financial Performance

BSE: 520008 | NSE: RICOAUTO | Auto Ancillary | Small Cap

Rico Auto Inds Share Price

133.10 -1.35 -1.00%
as on 14-Jun'24 16:01

DeciZen - make an informed investing decision on Rico Auto Inds

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Rico Auto Industries stock performance -

mw4me loader
P/E Ratio (CD):
46.88
Market Cap:
1,797.3 Cr.
52-wk low:
78.9
52-wk high:
157

Is Rico Auto Industries Ltd an attractive stock to invest in?

1. Is Rico Auto Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rico Auto Industries Ltd is a below average quality company.

2. Is Rico Auto Industries Ltd undervalued or overvalued?

The key valuation ratios of Rico Auto Industries Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Rico Auto Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Rico Auto Industries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rico Auto Inds:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rico Auto Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3.6%-43%6.6%8.6%9.1%7.9%3.7%1.3%4.6%6.5%-
Value Creation
Index
-0.7-4.1-0.5-0.4-0.4-0.4-0.7-0.9-0.7-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,0041,3461,0071,0381,2091,3931,4011,4701,8612,3022,160
Sales YoY Gr.-34.1%-25.2%3.1%16.5%15.2%0.6%4.9%26.6%23.7%-
Adj EPS -1.4-242.23.84.441.1-11.83.52.8
YoY Gr.-NANA69.8%17.2%-9.7%-71.4%-186.8%NA96.7%-
BVPS (₹) 25.833.334.838.741.645.545.944.847.450.953.2
Adj Net
Profit
-18.4-32530.150.959.85415.4-13.424.447.938
Cash Flow from Ops. 291-20.635.175.285.612811722.7216160-
Debt/CF from Ops. 1.2-96.53.13.233.623.92.74.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.7%13.7%18%23.7%
Adj EPS NA-4.3%45.9%96.7%
BVPS7.9%4.1%3.5%7.4%
Share Price 21.5% 16.5% 38.4% 49.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-5.3-81.26.510.3119.22.5-2.23.97.25.4
Op. Profit
Mgn %
10.8-22.99.810.710.810.38.168.49.610.3
Net Profit
Mgn %
-1.9-24.134.953.91.1-0.91.32.11.8
Debt to
Equity
10.40.50.50.50.60.70.90.91.10.4
Working Cap
Days
14710413914714715016518215712560
Cash Conv.
Cycle
29233944495454574233-7

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 5.40%

Sales growth is growing at healthy rate in last 3 years 18.01%

Net Profit is growing at healthy rate in last 3 years 45.89%

Debt to equity has increased versus last 3 years average to 1.06

Sales growth is not so good in last 4 quarters at -6.35%

Latest Financials - Rico Auto Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 2.3 2.8
TTM Sales (₹ Cr.) 1,653 2,160
BVPS (₹.) 48.6 53.2
Reserves (₹ Cr.) 644 707
P/BV 2.73 2.50
PE 58.26 46.88
From the Market
52 Week Low / High (₹) 78.85 / 157.00
All Time Low / High (₹) 2.00 / 157.00
Market Cap (₹ Cr.) 1,797
Equity (₹ Cr.) 13.5
Face Value (₹) 1
Industry PE 52.7

Management X-Ray of Rico Auto Inds:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rico Auto Inds

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,0041,3461,0071,0381,2091,3931,4011,4701,8612,302
Operating Expenses 8951,6549089271,0781,2491,2871,3811,7042,081
Manufacturing Costs162239222221246273205200242286
Material Costs5427894935196247457418061,0551,359
Employee Cost 122151131136146153246238268292
Other Costs 684756250637995138139144
Operating Profit 108-3089911113114411489157221
Operating Profit Margin (%) 10.8%-22.9%9.8%10.7%10.8%10.3%8.1%6.0%8.4%9.6%
Other Income 22431413161923192019
Interest 66532017192731394454
Depreciation 778547465458808091112
Exceptional Items 0194-5-1-7-10-7-4-6-1
Profit Before Tax -13-2084163707219-163674
Tax 2-24111212212-21223
Profit After Tax -15-1843052585117-142451
PAT Margin (%) -1.5%-13.6%2.9%5.0%4.8%3.7%1.2%-1.0%1.3%2.2%
Adjusted EPS (₹)0.311.32.23.84.33.71.2-1.11.83.8
Dividend Payout Ratio (%)40%26%28%20%19%21%24%-19%23%20%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 349451471524563616621606642689
Share Capital 14141414141414141414
Reserves 335437457510550602607592628676
Minority Interest0443343302
Debt266146177182198326373448469626
Long Term Debt9688926763165210241188377
Short Term Debt1715886115135162164207280250
Trade Payables268141130129158194253362448386
Others Liabilities 287137121130160189172216263231
Total Liabilities 1,1708789029671,0831,3291,4231,6351,8221,936

Fixed Assets

Gross Block1,2749629974745517529041,0081,2661,473
Accumulated Depreciation6023926094699147212289377468
Net Fixed Assets6725703884284526056927198901,005
CWIP 35347044638063638979
Investments 0496272600022
Inventories158109120110129161185264290281
Trade Receivables167147143165229272266352364395
Cash Equivalents 11575122717212736
Others Assets127-35169187172184200215160137
Total Assets 1,1708789029671,0831,3291,4231,6351,8221,936

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 291-2135758612811723216160
PBT 131874163707219-163674
Adjustment 166-637051587394111132166
Changes in Working Capital 130-144-63-31-26-113-6754-68
Tax Paid -180-13-9-17-16-10-5-6-12
Cash Flow From Investing Activity -72246-14-67-79-181-133-102-195-233
Capex -73-157-69-68-91-209-134-118-199-200
Net Investments -144944-151700-120
Others 2-4610281111617-33
Cash Flow From Financing Activity -221-231-22-8-169280-2777
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -63-5112-1815803781-53201
Interest Paid -69-54-21-17-18-25-29-38-45-58
Dividend Paid -3-18-41-2-19-12-7-4-3-5
Others -86-1092729212524274-60
Net Cash Flow -2-600616-141-64
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-4.27-45.956.4510.3910.678.652.7-2.293.87.67
ROCE (%)6.95-23.29.2110.9911.1410.814.932.086.739.66
Asset Turnover Ratio0.971.451.211.191.21.151.020.961.091.24
PAT to CFO Conversion(x)N/AN/A1.171.441.482.516.88N/A93.14
Working Capital Days
Receivable Days52384951586670777059
Inventory Days53333938363845565445
Payable Days1277991828086110139140112

Rico Auto Industries Ltd Stock News

Rico Auto Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rico Auto Inds on 14-Jun-2024 16:01 is ₹133.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 14-Jun-2024 16:01 the market cap of Rico Auto Inds stood at ₹1,797.3.
The latest P/E ratio of Rico Auto Inds as of 14-Jun-2024 16:01 is 58.26.
The latest P/B ratio of Rico Auto Inds as of 14-Jun-2024 16:01 is 2.73.
The 52-week high of Rico Auto Inds is ₹157.0 and the 52-week low is ₹78.85.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rico Auto Inds is ₹1,653 ( Cr.) .

About Rico Auto Industries Ltd

Rico Auto Industries, incorporated in 1984-85, is a world-class engineering company supplying a wide range of high precision fully machined aluminum and ferrous components and assemblies to automotive OEMs across the globe. Its consolidated group total turnover is over $285 million (Rs 1100 crore).

Rico’s integrated services include design, development, tooling, casting, machining and assembly across ferrous and aluminum products.

Rico Auto is a dynamic world-class engineering company, supplying a broad range of high precision fully machined ferrous and aluminium components and assemblies to automotive OEMs globally. The company enjoys an excellent reputation for our customer focus, quality and cost-competitiveness. Its engineering excellence, advanced design and development capabilities, strong customer relationships and proven scalability, have helped it become a preferred supplier to OEMs across the globe.

Today it has earned a reputation of being a reliable high quality supplier capable of supplying global volumes and also of an integrated and innovative development partner capable of developing complex products. It is increasingly positioning itself as a strategic design development partner which helps it with early sourcing opportunities. It has achieved critical mass now and estimate that it would continue to grow its export at a fast pace in the next few years.

Milestones:

  • 1984-86 Rico Auto was incorporated (1984-85) and commercial production started (1986) Aluminum HPDC plant set up in Dharuhera (40 km from Delhi, India) TC with FCC Japan for manufacturing of Clutch Assembly
  • 1990-92 Ferrous Casting & Machining plant set up in Gurgaon (20 km from Delhi, India) Entered International Market as OEM Supplier to MEC Japan.
  • 1994-96 FCC RICO (50:50) JV formed Started supplying globally to USA & UK (Eaton, Cummins, GM, etc.)
  • 1998-00 Second Aluminum HPDC & Machining Plant set up in Gurgaon
  • 2000-02 Set up full service Engineering, Design & Development function. Added Customers: Ford, Jaguar, Land Rover Certified TS 16949, ISO 140001, OHSAS 18001
  • 2002-04 Enhanced Ferrous & Aluminum Capacity Added Customers: Caterpillar, Honeywell, Detroit Diesel, Volvo
  • 2004-06 R&D Center started Added Customers: Nissan, Tata, Perkins
  • 2007JV with CONTINENTAL Automotive Systems (Hydraulic Brakes) JV with JINFEI CHINA (Aluminum Alloy Wheels - 2 Wheelers) Acquired 25 acres land in Chennai.
  • 2010 - New Plant at Haridwar commences production.
  • 2011 - New Plant at Sanand, Gujarat commences production.

Product range of the company includes:

Oil Pump Assembly, Fuel System Parts, Lube Oil Filters Heads, Exhaust Manifolds, Turbine Housings, Center Housings, Back Plates, Crank Cases & Covers, Cylinder Head Covers, Oil Pan, Intake Manifold Covers, Front Cover, Valve Cove, Side Cover, Balance Shafts Assembly, Gear Housing, Bearing Caps,Water, Air Connections and Pressure Plates, Flywheels, Timing Cases, Oil Filter Adaptor, Engine Brackets, Cylinder Block (Ferrous), Cylinder Head (Aluminum), Clutch Assembly, Automatic Transmission Bracket Assembly, Differential Case Housings, Gear Shifts Forks, Wheel Hubs Assembly, SetsBrake Panel Assembly, SetsBrake Discs, Drums and Steering Knuckles.

Clientele:

The long list of company’s clients include, Hero Honda, Honda, Suzuki, Bajaj, Volvo, Jaguar, Tata, Perkins, Honeywell etc.

Different divisions of the company:

  • Aluminum Casting
  • Ferrous Casting
  • Machining & Assembly
  • Engineering & R&D
  • Dies, Patterns & Tooling

Subsidiaries/ Joint Ventures:

  • FCC Rico
  • Continental Rico
  • Rico Jinfei
  • MAGNA Powertrain RICO

Achievements/  recognition:-

  • Rico is a ISO / TS 16949, ISO 14001 and OHSAS 18001 Certified company. 
  • Rico has become FORD Q1 since July 2007
  • Best Retention Strategy-2007
  • Best HR Practices-2007
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