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Rico Auto Industries Ltd. Stock Analysis

Small Cap
Evaluated by 974 users | BSE: 520008 | NSE: RICOAUTO |
Auto Ancillary
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...

Analysis of Financial Track Record

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
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 2.46%5.77%6.17%4.46%5.85%7.41%6.6%8.5%9.09%7.61%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9951,3151,5051,5061,4801,3461,0071,0381,2091,393
Y-o-Y Gr. Rt.-32.2%14.4%0.1%-1.7%-9%-25.2%3.1%16.5%15.2%
Adjusted EPS (Rs.) -0.860.580.04-0.84-0.160.942.223.744.413.78
Y-o-Y Gr. Rt.-NA-93.1%-2200%NANA136.2%68.5%17.9%-14.3%
Book Value per Share (Rs.) 23.1723.7625.2325.4325.7833.3334.7838.7141.6345.53
Adjusted Net Profit -117.80.6-11.3-2.112.730.150.559.751.2
Net Op. Cash Flow (Rs. Cr.) 104130112213291-20.635.175.285.6128
Debt to Cash Flow from Ops 4.253.664.272.341.2-9.026.463.143.182.96
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Rico Auto Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.8%-1.2%11.4%15.2%
Adjusted EPS NANA19.4%-14.3%
Book Value per Share 7.812.19.49.4
Share Price 11.1% -8% -31.9% -30.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -3.662.490.17-3.3-0.613.176.5310.1710.988.68
Operating Profit Margin (%) 7.949.618.757.4910.036.49.7910.7310.8410.31
Net Profit Margin (%) -1.110.590.04-0.75-0.090.953.014.584.713.48
Debt to Equity 1.481.481.41.4510.410.480.450.480.61
Working Capital Days 122108107108104104139147147150
Cash Conversion Cycle 31243236242339444954
Entity Percentage Holding
Promoters 50.30%
Institutions 6.45%
Non-Institutions 43.25%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Rico Auto Inds and arrived at the following conclusion:

Past 10 year's financial track record indicates that Rico Auto Inds is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Rico Auto Inds's performance infers:

Rico Auto Inds earnings have grown by 0%, whereas share price has depreciated -8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Rico Auto Inds share prices over the last 10 years. Here is what we found out:

Rico Auto Inds share price has depreciated 1.2% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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