Saturday, September 13, 2014

RICO AUTO INDUSTRIES (520008) :- A TURNAROUND CANDIDATE ?

Dear readers,
  New NDA government main agenda is MANUFACTURE IN INDIA SELL ANYWHERE IN WORLD is really bump up our economy, India lots of Manpower sitting idle gets jobs as well as our exports increaseing substantialy. Now coming to our point once economy getting ontrack means infrastructure growth is should pickup also another sector is AUTO now we concentrate manufacturing means AUTO ANCILLARY, After new government formation auto ancillary shares limelight in dalal street everyone searching which is best in those sector ? But lot of listed stocks available. Long term investors nit looking only sector should look promoter background and companies past track record and corporate governance. I choose such a stock for investor is RICO AUTO INDUSTRIES, listed both NSE AND BSE.

 ABOUT COMPANY:- RICO AUTO'S consolidated group turnover  is over US$285 MILLION (RS 1100cr). Compay doing integrated services include  design,development  tooling, casting, machining and assembly across  ferrow and aluminium products.
 Company's main products is OIL PUMP ASSEMBLY /FUEL SECTION PARTS/LUBE OIL FILLTER HEADS.
Compay's customers are GLOBAL LEADERS IN AUTOMOBILE SECTORS LIKE HERO/HONDA/SUZUKI /BAJAJ .
Passenger car segment  MARUTHI/HONDA/ VOLVO/ TATA/ GM. in system supply  category  CUMMINS/HONEYWELL /QP PUMPS  are major customers.
 Promoter holding 50% stake, face value of Re 1, last year company  given 930cr net sales with 2.63 Cr net profit in that main looking part is 60cr interest paid.
 Latest  Tv interviews CMD KAPOOR  OF  RICO AUTO hints compay having total 375cr debit now, compay's aim is DEBIT FREE BY YEAR END OF 2014-2015, Also he say current utilization is around only 55% and it expect improve going ahead of global Auto sector growth, he also says export growth pickup 30% from 20% in this year.
  If everything right RICO'S stock should pickup in faster face to peers group stocks Now trading around  29 rs investors keep with this stock in to ling term portfolios. Debit free means compay save around 60cr that comes net profit. So investors buy this stock low risk high gain category whith thier own risk. It may trade above 3 digits mark in next one year.

 DISCLOSES:- I am holding this stock.

author is not responsible for any risk comes in stock market. This is author's own analysis.

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