Rico Auto IndustriesNSE:RICOAUTO -0.72%68 Gross Margin % is 35.08% as of Mar. 2026, which is 17% above its 10-year median of 30.09. GuruFocus rates NSE:RICOAUTO with a GF Score™ of 68/100 and a GF Value™ of ₹112.73 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,309 Vehicles & Parts companies, Rico Auto Industries ranks better than 83.19% on this metric.
The historical rank and industry rank for Rico Auto Industries's Gross Margin % or its related term are showing as below:
NSE:RICOAUTO'
s Gross Margin % Range Over the Past 10 Years
Min: 26.59 Med: 30.09 Max: 48.11
Current: 37.75
During the past 13 years, the highestGross Margin % of Rico Auto Industries was 48.11%. The lowest was 26.59%. And the median was 30.09%.
NSE:RICOAUTO's Gross Margin % is ranked better than 83.19% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 19.83
vs NSE:RICOAUTO: 37.75
Rico Auto Industries had a gross margin of 35.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Rico Auto Industries was 5.60% per year.
Rico Auto Industries (NSE:RICOAUTO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rico Auto Industries had a gross margin of 35.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rico Auto Industries Gross Margin % Related Terms
Rico Auto Industries Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rico Auto Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RICOAUTO vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Rico Auto Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rico Auto Industries Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rico Auto Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rico Auto Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rico Auto Industries (NSE:RICOAUTO) has a Gross Margin % of 35.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rico Auto Industries and its competitors. This is 17% above median its historical median of 30.09. Over the past decade, Rico Auto Industries' Gross Margin % has ranged from 26.59 to 48.11. According to the industry distribution chart, Rico Auto Industries ranks #220 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 16.8%.
Is Rico Auto Industries' Gross Margin % too high?
Rico Auto Industries' current Gross Margin % of 35.08% is 17% above median its 10-year median of 30.09. Over the past 10 years, this metric has ranged from a low of 26.59 to a high of 48.11. The Vehicles & Parts industry median Gross Margin % is 19.83. Rico Auto Industries' value of 35.08% is 76.9% above this industry median. Based on the distribution chart, Rico Auto Industries ranks #220 out of 1309 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Rico Auto Industries has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rico Auto Industries' Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Rico Auto Industries ranks #220 out of 1309 companies for Gross Margin %. This places Rico Auto Industries in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.83. Rico Auto Industries' value of 35.08% is 76.9% above this benchmark. Historically, Rico Auto Industries' own Gross Margin % has ranged from 26.59 to 48.11 over the past decade. While the company's 10-year median is 30.09 vs. the industry median of 19.83, Rico Auto Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,309 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rico Auto Industries's current Gross Margin % of 35.08% is 76.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rico Auto Industries and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rico Auto Industries's current Gross Margin % is 35.08%, which is 17% above median its own 10-year median of 30.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rico Auto Industries stock overvalued right now?
Based on GuruFocus' analysis, Rico Auto Industries (NSE:RICOAUTO) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹112.73, compared to a current price of ₹137.15 — trading 21.7% above its estimated fair value. The current Gross Margin % is 35.08%, which is 17% above median its 10-year median of 30.09 and 76.9% above the Vehicles & Parts industry median of 19.83. Rico Auto Industries' overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rico Auto Industries (NSE:RICOAUTO), the current Gross Margin % is 35.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rico Auto Industries (NSE:RICOAUTO) Overvalued in 2026?
Based on GuruFocus' analysis, Rico Auto Industries stock appears to be overvalued.
The current stock price of ₹137.15 is trading 21.7% above its estimated GF Value™ of ₹112.73.
GuruFocus considers Rico Auto Industries to be Modestly Overvalued.
Key valuation signals for NSE:RICOAUTO:
Gross Margin %: 35.08% (17% above median its 10-year median of 30.09)
GF Value™: ₹112.73 vs. price of ₹137.15 (21.7% above fair value)
Industry Position: 76.9% above the Vehicles & Parts median (#220 of 1309)
No single metric tells the full story. See the NSE:RICOAUTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rico Auto Industries Ltd is an engineering group focused on the automobile industry, manufacturing and selling auto components for two-wheelers and four-wheelers. It supplies a broad range of high-precision, fully machined aluminum and ferrous components and assemblies to Original Equipment Manufacturers across the globe. The group's integrated services include design, development, tooling, casting, machining, assembly, and research and development across aluminum and ferrous products. Its product portfolio comprises oil pump assemblies, fuel system parts, lube oil filter heads, exhaust manifolds, turbine housings, gear housings, valve covers, and others. Geographically, the group generates a majority of its revenue from its business in India.
68GF Score
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