Rico Auto Industries Share Price Target; Are you considering investing in Rico Auto Industries Shares? Want to know its future Price target? This guide will discuss the Rico Auto Industries share price target for The Years 2025, 2026 and 2030. Along with this, we will do a complete Fundamental analysis to help you make the right decision.
Rico Auto Industries Share Price Target Overview
| Metric / Category | Value / Insight |
|---|---|
| Current Share Price (Aug 2025) | ₹92.28 |
| 52-Week Range | ₹54 – ₹127.65 |
| Market Capitalisation | ₹1,248 crore |
| P/E Ratio | ~38.6× |
| Industry Average P/E | ~48.7× |
| Q1 FY26 Revenue | ₹543 crore |
| Q1 FY26 Net Profit | ₹16.7 crore |
| Intrinsic Value (Fair) | ~₹66 |
| Analyst Consensus | ₹96 (near-term) |
| Long-Term Forecast (2030) | ₹174+ |
Company Profile and Business Model
Rico Auto Industries Ltd. is one of India’s established auto component manufacturers, producing high-precision aluminium and ferrous parts for engines, transmissions, and braking systems. The company works closely with domestic and global original equipment manufacturers (OEMs), giving it strong industry linkages. Headquartered in Gurugram, Rico Auto has manufacturing facilities in multiple locations, catering to passenger vehicles, two-wheelers, and commercial vehicles.
The company’s integrated business model includes designing, tooling, casting, machining, and assembly, which helps control costs and ensures quality consistency. In a cyclical industry such as auto components, a diversified client base provides stability even when demand fluctuates.
Current Market Performance
As of August 2025, Rico Auto’s share trades around ₹92.28, which is in the mid-range of its 52-week span of ₹54 to ₹127.65. This indicates that while the stock has recovered from its lows, it remains far from its earlier highs.
The company holds a market capitalization of ₹1,248 crore. With a trailing P/E of 38.6×, the stock is trading at a discount compared to the broader industry P/E of 48.7×. This suggests that while investors are optimistic, there is still scope for multiple expansion if earnings grow consistently.
In the past one year, the stock has been highly volatile. Weekly movements have often crossed 7–8%, making it attractive for traders but requiring caution from long-term investors.
Financial Performance and Growth Outlook
Rico Auto posted ₹543 crore revenue in Q1 FY26 with a net profit of ₹16.7 crore. Revenue growth was stable year-on-year, while profitability improved marginally. The company has been working on margin enhancement by improving operational efficiency and reducing debt.
Over the past three years, revenue growth has averaged in mid-single digits, with occasional slowdowns due to weak demand in the automobile sector. However, with India’s passenger vehicle and two-wheeler markets expanding and global supply chain diversification taking place, auto ancillary firms like Rico Auto are expected to benefit in the medium to long term.
Margins remain an area of concern as input costs fluctuate, but the company’s backward integration and OEM tie-ups provide some stability.
Valuation Analysis
Valuation models suggest an intrinsic fair value of around ₹66 per share. With the stock currently trading at ~₹92, it is valued at nearly a 40% premium to its estimated fair value. This implies that the market is factoring in strong future earnings growth.
While near-term valuations appear stretched, the stock remains attractive for investors who believe in India’s long-term auto growth story. In cyclical industries, overvaluation in the short run may sustain if the sector enters a multi-year growth cycle.
SWOT Analysis
Strengths
- Established supplier base across domestic and international OEMs
- Integrated manufacturing capabilities reduce dependency on third parties
- Below-industry P/E ratio indicates relative attractiveness
Weaknesses
- Thin profit margins compared to larger peers
- Stock volatility increases investment risk
Opportunities
- Rising demand for two-wheelers and passenger cars in India
- Government push for Make-in-India auto components
- Potential entry into electric vehicle parts supply
Threats
- Cyclical nature of the auto industry
- Rising raw material prices
- Intense competition from larger players
Year-Wise Share Price Target for Rico Auto Industries
Share Price Target 2025
In 2025, Rico Auto is expected to trade between ₹90 – ₹110, depending on quarterly earnings and sector performance. With modest upside, analysts’ consensus target is ₹96 by year-end.
Share Price Target 2026
By 2026, if revenue grows at 8–10% annually with margin expansion, the stock could reach ₹120 – ₹135. A positive demand cycle in passenger vehicles will be critical.
Share Price Target 2027
In 2027, consistent earnings improvement and capacity expansion could push the price into the range of ₹140 – ₹155. The company’s ability to secure EV component contracts may act as a growth catalyst.
Share Price Target 2028
By 2028, assuming strong sectoral growth, the share could trade between ₹160 – ₹170. This assumes both domestic and global OEM demand remains stable.
Share Price Target 2029
In 2029, as India’s auto industry matures further and Rico Auto scales up its exports, the stock may reach ₹170 – ₹180. Volatility will remain, but long-term growth remains intact.
Share Price Target 2030
By 2030, Rico Auto Industries may trade in the range of ₹174 – ₹190, as per long-term forecasts. This assumes steady revenue growth, improved profitability, and participation in the EV supply chain.
Investment View
Rico Auto Industries is not a fast-growth stock but provides moderate upside in a steadily growing industry. For long-term investors, the stock offers potential to nearly double over the next five years if management executes its growth plans well.
For short-term traders, the stock offers multiple trading opportunities due to its volatility. However, investors should remain cautious given its current premium valuation.
Overall, it is a Hold-to-Buy on dips stock for long-term portfolios, with meaningful upside expected post-2026 if sector conditions remain favorable.
Final Verdict
- Near-term (2025) price target: ₹96 – modest upside
- Medium-term (2026–2028): ₹120–170 depending on growth execution
- Long-term (2030): ₹174–190 with potential participation in EV supply chains
- Valuation: Trading above intrinsic value but backed by sector growth expectations
- Recommendation: Suitable for patient investors seeking exposure to India’s auto components sector
