Rico Auto Industries

The company reported a growth of 41 per cent in sales turnover to Rs 74.61 crore and a near identical growth in gross profit to Rs 6.78 crore during the year to March 1996. Net profit rose by 54. 4 per cent to Rs 3.40 crore giving an earnings per share of Rs 6.49 (Rs 5.90) on an increased equity capital of Rs 5.24 crore. The company, which expected a better profit for fiscal 1996, was unable to achieve this due to low capacity utilisation at its new unit at Gurgaon. Performance during the first five months of the current year registered a growth of 36.7 per cent over the corresponding period of the previous year. The company plans to expand and diversify for future growth. During the year it entered into a agreement with Daewoo Precision Industries, Korea, to float a joint venture company. This company will be the single source original equipment supplier to Daewoo's operations in India and for its car manufacturing units in other countries.

 

Market price: Rs 78, EPS: Rs 6.49, P/E: 12.0