The auto ancillary sector is going through a steady shift as regulations tighten, and powertrains move gradually from traditional engines to hybrid and electric formats.
For long-term investors, this sector offers strong growth prospects.
While specific stock selection decisions will depend on individual investors, some stocks have already caught the attention of Dalal Street.
In this editorial, we cover one such auto ancillary stock, Rico Auto ltd.
Today, 28 November, the shares of Rico Auto jumped sharply, rising 12.2% and hitting a 52-week high. This follows a big up move earlier this month.
Here's why the stock is rising...
The stock has been in focus ever since its September 2025 quarterly results.
The company posted good growth in sales and profits last quarter, resulting in improved sentiment and a re-evaluation of the stock by the market.
The company's sales increased 9% year-over-year (YoY) while its net profit went up 237 times YoY from Rs 66 million (m) to Rs 177 m.
On a sequential basis, the company's sales and profit were up 15.4% and 6% respectively.
The management announced that the company had secured Rs 12.3 bn in new orders in the first half of the financial year which will result in higher growth in the coming quarters.
The festive season gave a big boost to the auto sector as a whole. As per the latest data from Vahan, the momentum has been sustained across categories.
Vahan data for November 11-27 shows that on an annual basis, 2-wheeler sales were up 38% and passenger vehicle sales were up 31%.
Rico Auto Industries is an established and reputed engineering group focused on the automobile industry.
The company manufactures and supplies high precision and fully machined components & assemblies both aluminium and ferrous - to leading OEMs across the globe.
Rico Auto Industries has entered the railways sector by establishing a new business vertical focused on manufacturing railway components. This strategic move involves producing high-quality cast and machined parts specifically for tracks, wagons, and carriages.
The impact on total revenues from the railways business is expected only in the next few quarters.
Rico Auto Industries is facing uncertainties and challenges due to US tariffs, which are impacting its export opportunities and potentially raising costs.
The management has expressed hope that the tariff situation will improve and that they are taking measures to ensure business continuity and a minimal impact on the company's financials.
Rico Auto's shares closed at Rs 119.6 on 28 November 2025. Since 7 November, when the recent rally began, the stock is up 48.3%.
Over the last one year, the stock is up 30.6%.
The stock touched its 52-week high of Rs 123.48 on 28 November 2025 and its 52-week low of Rs 49.5 on 7 April 2025.
Rico Auto Industries is an engineering company specialising in the supply of high precision, fully machined aluminium and ferrous components and assemblies to automotive OEMs (Original Equipment Manufacturers) globally.
The company offers integrated services including design, development, tooling, casting, machining, and assembly across ferrous and aluminium products.
To know more, check Rico Auto Industries fact sheet and latest quarterly results. You can also compare Rico Auto Industries with its peers on our website.
Rico Auto Industries vs Jamna Auto
Rico Auto Industries vs Automotive Axles
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
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