Rico Auto Inds Stock Price Analysis and Quick Research Report. Is Rico Auto Inds an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Rico Auto Inds is performing and if it is the right time to buy the stock of Rico Auto Inds with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Rico Auto Inds has reported poor sales growth of -11.7573 % and in the latest quarter sales was Rs 415.07 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 7.5845 times for Rico Auto Inds . It is managing its inventory poorly .
   
• Rico Auto Inds reported Profit loss of -26.8437 % over the year, where the latest year profit is Rs 30.85 Cr compared to the previous year of Rs 42.17 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Rico Auto Inds in the latest quarter is Rs 36.27 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Rico Auto Inds has a poor ROE of 4.7791 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Rico Auto Inds has a low Debt to Equity ratio of 0.827.
   
• Rico Auto Inds pays a dividend of 0.6 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.6329 %.
   
• The share of promoter in Rico Auto Inds is high at 50.34 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Rico Auto Inds is 46.6843814585179 compared to the 5 year average PE of 24.7995202594041 .
   
• Share Price: - The current share price of Rico Auto Inds is Rs 79.06. One can use valuation calculators of ticker to know if Rico Auto Inds share price is undervalued or overvalued.