Sharekhan recommended Hold rating on Rico Auto Industries with a target price of Rs 70 in its research report dated May 30, 2019
Sharekhan's research report on Rico Auto Industries
Q4 results were significantly below estimates as increasing commodity costs, pricing power from OEM’s and operating deleverage impacted the margins. Earnings growth would be meager 2% in FY20 as slowdown in domestic OEM, pricing pressures and rising inetrest and depreciation to weigh on earnings. Return ratios are unlikely to improve and we expect ROE to remain in 10-11% range which rules out any scope of multiple re rating.
We retain Hold rating on the stock of Rico Auto Industries (RAI) with a revised PT of Rs 70.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.