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Rico Auto Industries Limited (RICOAUTO) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹18.7B

RA Rico Auto Industries Limited RICOAUTO · NSE
Price₹132.90
Fair Value₹73.07
Upside-45.0%
Quality53/100
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Expensive Growth
Thin margins · 2.0% net margin
Moderate debt · negative free cash flow
0.40% dividend yield
Trails peers (4/13)
Narrow moat 27/100
Evidence: High Range ₹51.15 – ₹94.99 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 4 days ago

Share price +4.3% over the past month.

A solid business, but screening 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹94.99). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹51.15 to ₹94.99) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹155.81 ₹30.69 Fair Value ₹73.07 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹30.69 – ₹155.81 · fair‑value band ₹51.15 – ₹94.99 · the ₹132.90 price screens above the ₹73.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Rico Auto Industries Limited (RICOAUTO) currently trades at ₹132.90, while our model-based Fair Value estimate is ₹73.07, implying the stock looks roughly 45.0% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Rico Auto Industries Limited generated revenue of ₹24.8B at a net margin of 2.0%. Revenue grew 24.3% year over year. It earns a return on equity of 6.9%. Net debt stands at ₹7.1B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹51.15 (bear case) to ₹94.99 (bull case); at ₹132.90, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 103% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at -45%, RICOAUTO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹45.87 ₹47.61 ₹49.53 76
ROIC Compounder ₹45.39 ₹57.87 ₹80.75 72
Gordon GGM ₹4.84 ₹10.06 ₹15.96 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹25.39 ₹81.12 ₹108.16 54
Lynch FV ₹17.93 ₹25.61 ₹33.30 50
PEG = 1.0 ₹17.93 ₹25.61 ₹33.30 46
EPV ₹45.39 ₹57.77 ₹68.59 59
Dividend Discount
Gordon GGM ₹4.84 ₹10.06 ₹15.96 70
DDM Multi-Stage ₹4.84 ₹8.10 ₹10.56 61
Multiples
P/E Multiple ₹61.60 ₹82.14 ₹102.67 63
P/S Multiple ₹47.60 ₹63.47 ₹79.34 58
P/B Multiple ₹47.60 ₹63.47 ₹79.34 55
EV/EBIT ₹93.41 ₹134.17 ₹174.93 53
EV/EBITDA ₹119.65 ₹169.15 ₹218.65 54
EV/Revenue ₹53.56 ₹88.89 ₹124.21 43
Asset-Based
NCAV (Graham) ₹28.81 ₹38.60 ₹57.61 50
Economic Profit
Residual Income ₹45.87 ₹47.61 ₹49.53 76
ROIC Compounder ₹45.39 ₹57.87 ₹80.75 72
Growth Earnings
Growth-Adj P/E ₹51.15 ₹73.07 ₹94.99 68

Widest divergence: Multiples (₹82.14) versus Dividend Discount (₹8.10). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹24.8B
Revenue growth (YoY) +24.3%
Net margin 2.0%
Return on equity 6.9%
Free cash flow −₹235M FY2026
P/E ratio 35.6
More key figures
Operating margin 3.3%
EPS (TTM) ₹3.73
Dividend yield 0.4%
EPS growth (YoY) -18.5%
Net debt ₹7.1B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 52 · Market factors (momentum, volatility) 63

Profitability 45
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 40
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 72
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Rico Auto Industries Limited, an engineering company, manufactures and supplies high precision fully machined aluminum, and ferrous components and assemblies to original equipment manufacturers worldwide. Its integrated services include the design, development, tooling, casting, machining, and assembly of aluminum and ferrous products.

Full company description

Rico Auto Industries Limited, an engineering company, manufactures and supplies high precision fully machined aluminum, and ferrous components and assemblies to original equipment manufacturers worldwide. Its integrated services include the design, development, tooling, casting, machining, and assembly of aluminum and ferrous products. The company offers oil pump assemblies, fuel system parts, lube oil filter heads, exhaust manifolds, turbine housings, center housings, back plates, crank cases and covers, cylinder head covers, oil pans, intake manifold covers, front covers, valve covers, side covers, balance shafts assemblies, gear housings, and main bearing caps, as well as water, air connections, and pressure plates. In addition, it provides flywheels, timing cases, oil filter adaptors, engine brackets, cylinder blocks, cylinder heads, clutch assemblies, automatic transmission bracket assemblies, differential case housings, gear shifts forks, wheel hubs assemblies, brake panel assemblies, brake discs, and drums. Further, the company offers tank track shoe, fuze body, and fuze assembly products, and aluminum alloy wheels, as well as engineering and assembly logistics management, warehousing, just in time delivery, and customer support and services. Rico Auto Industries Limited was incorporated in 1983 and is based in Gurugram, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Rico Auto Industries Limited reported revenue of ₹24.8B in FY2026 versus ₹18.5B in FY2022, a compound +7.6%/yr. Reported net income was ₹505M in FY2026, compounding +20.8%/yr from FY2022.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹24.8B
Latest YoY
+12.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.2%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Revenue +7.6%/yr
FY22 ₹18.5B
FY23 ₹23.0B
FY24 ₹21.6B
FY25 ₹22.1B
FY26 ₹24.8B
Net income +20.8%/yr
FY22 ₹237M
FY23 ₹510M
FY24 ₹383M
FY25 ₹214M
FY26 ₹505M
Character of growth · EPS growth decomposed (2015-2026) −7.8 % p.a.
Revenue per share +8.0 pp

of which total revenue +8.0 pp · buybacks/dilution +0.1 pp

EBIT margin −0.1 pp
Tax rate −4.5 pp
Residual (interest, one-offs) −11.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

RICOAUTO screens 45% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Rico Auto Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/RICOAUTO

Peer Group

Auto Parts · 639 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Below median
Fair Value upside −45% · Below median
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 24% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.52× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 35.6× · Pricier than median
P/B 2.40× · Pricier than median
P/S (TTM) 0.75× · Cheaper than median
EV/EBITDA 10.1× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 100 · sector 24
PAST 28 · sector 26
HEALTH 74 · sector 95
DIVIDEND 8 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 511,000 KRW 643,909 KRW +26%
Magna International Inc MGAN 1,122 MXN 1,142 MXN +2%
Samvardhana Motherson International Limited MOTHERSON ₹169.50 ₹80.63 -52%
Bosch Limited BOSCHLTD ₹46,750 ₹13,061 -72%
Bharat Forge Limited BHARATFORG ₹2,082 ₹393.20 -81%
Uno Minda Limited UNOMINDA ₹1,232 ₹426.57 -65%
Schaeffler India Limited SCHAEFFLER ₹4,126 ₹1,412 -66%
Hankook Tire & Technology Co 161390 71,500 KRW 196,479 KRW +175%
Sona BLW Precision Forgings Limited SONACOMS ₹799.90 ₹207.06 -74%
Balkrishna Industries Limited BALKRISIND ₹2,497 ₹1,211 -51%

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Frequently asked questions

Is Rico Auto Industries Limited (RICOAUTO) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹73.07 versus a price of ₹132.90, about −45% (overvalued).
What is the fair value of RICOAUTO?
Our model-based fair value for Rico Auto Industries Limited is ₹73.07 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹132.90.
What is the quality score of RICOAUTO?
Rico Auto Industries Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rico Auto Industries Limited (RICOAUTO)?
Rico Auto Industries Limited reported trailing-twelve-month revenue of about ₹24.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RICOAUTO?
The net profit margin of Rico Auto Industries Limited is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does Rico Auto Industries Limited pay a dividend?
Rico Auto Industries Limited currently shows a dividend yield of about 0.40% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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