Rico Auto Industries Ltd. share price target

to a sharp margin contraction. Revenues at Rs 348 cr grew 5% y-o-y and were in line with our estimates. Topline growth moderated from double-digits earlier due to production cuts taken by domestic OEM's owing to weak demand. The operating margins at 7.2% contracted sharply by 440 bps y-o-y and 370 bps sequentially and significantly missed our estimates of 10.7%....

Rico Auto Industries Ltd (Rico) reported revenue of INR 335 cr in Q3FY19, registering a healthy growth of 10% y-o-y.

visibility; Strong growth in the aftermarket space to further bolster growth: Rico Auto Industries (RAI) has a robust order book (valued at Rs. 4,800 crore) currently, which is executable over the next five to seven years. The size of the order book is substantial (FY2018 turnover was about Rs. 1,200 crore). As per management, RAI has also received new business (new orders in the order book...

We attended the Greenply Industries (GIL) analyst meet. Following are the key takeaways: (1) GIL expects to see continued double-digit volume growth in its plywood business for the next few years, with operating margins maintained at 11-11.5%. (2) MDF prices have begun to stabilise with the company seeing no major correction since Oct'18. Management expects its MDF sale volumes to increase by ~15% in FY19 to 0.21mn cbm and further to 0.32mn cbm in...

Rico Auto Industries Ltd (Rico) reported revenue of INR 361 cr in Q2FY19, registering a strong growth of 20% y-o-y.

Rico Auto Industries Ltd (Rico) reported revenue of INR 349 cr in Q1FY19, registering a strong growth of 28% y-o-y.

We attended the analyst meet of Rico Auto Industries (RICO). RICO is one of the leading engineering company supplying a wide range of high precision fully machined aluminum and ferrous components and assemblies to automotive OEMs across the globe. Its top 6 clients HMCL/BMW/RNA/PSA/MSIL and Cummins contribute ~33%/16%/16%/10%/9% and 8% respectively for FY18 revenue. Rico's integrated services include design, development, tooling, casting, machining and assembly across commodities. Company's revenue contribution from Engine/Transmission/Chassis...

Rico Auto Industries Ltd (RAIL) is a key manufacturer of ferrous and aluminium casting and machining components used in the automotive space.

Rico Auto Industries Ltd (RAIL) is a key manufacturer of ferrous and aluminum casting and machining components used in the automotive...

Strong Clientele Base:Company is a well established auto component Tier 1 supplier to both the 2 wheeler, 4 wheeler and industrial segments. Notable large OEM customers include Bajaj Auto, Hero Motor, Yamaha, Honda, Suzuki, TVS, Tata Motors, GM, Renault, Nissan, Ford, Jaguar, Volvo, Caterpillar, Perkins, Tata Cummins, Magna, Honeywell, Continental and Jatco. Company expects strong relationship with OEMs offers a big opportunity for RAIL to expand its product offerings and increase content per vehicle. RAIL has won a new Differential Housing Business order from GKN and BMW. Also ramp up in exports to Jatco and Renault is...

We recently attended the investor meet of Rico Auto Industries (RAL) to understand its business model. RAL, established in 1983, manufactures & supplies machined components & assemblies of aluminium (71% of revenue) and ferrous (29% of revenue) components; domestic (73% of revenue) & exports (27% of revenue). In terms of customer mix, Hero MotoCorp accounts for 34% of revenue, Renault Nissan & BMW account for 16% each, Maruti Suzuki & Cummins account for 10% each & remaining 14% is from others. It has recently entered the aftermarket...

Incorporated in March 1983, Rico Auto Industries Ltd (RAIL) manufactures and sells highpressure aluminum die cast components and spheroidal graphite (SG) iron castings for the automotive sector. RAIL currently operates from 9 locations at Dharuhera, Haridwar, Sanand and Gurgaon, manufacturing automotive components for both the 2-wheelers and 4-wheeler segments like wheel hubs, panels, clutch assemblies, cylinder covers, cylinder head, cylinder block, center housing, exhaust manifolds, fly wheels and brake drum among others. Further RAIL has a diverse product range and supplies a broad range of high-precision fully machined aluminum and ferrous components and assemblies to OEMs across the globe. RAIL's key positives are via its integrated services...