Rico Auto seems to be richly priced at current valuations

SKP Research report on Rico Auto:

Rico Auto Industries, a world class engineering company, supplies a broad range of high precision fully machined ferrous and aluminium components and assemblies to automotive OEMs globally. The company is recognized as a fully integrated supplier which can provide entire set of services viz. designing, casting, machining and assembling of components. Some of the major domestic clients are Hero Honda, Maruti Udyog, HMSI and Honeywell and some overseas clients are  Ford, Jaguar, Volvo and Cummins.
 
The stock of Rico Auto is currently trading at a trailing P/E multiple of 24.76 based on standalone earnings and 17.90 times consolidated earnings. Although operating margins may improve marginally from here onwards, its positive impact will be nullified by sharp increase in depreciation and interest costs. The stock seems to be richly priced at current valuations.

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