Rico Auto IndustriesNSE:RICOAUTO -4.30%72 Operating Margin % is 3.31% as of Mar. 2026, which is 34% below its 10-year median of 5.02. GuruFocus rates NSE:RICOAUTO with a GF Score™ of 72/100 and a GF Value™ of ₹112.31 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Rico Auto Industries ranks better than 50.87% on this metric.
Rico Auto Industries Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Rico Auto Industries's Operating Margin % or its related term are showing as below:
NSE:RICOAUTO'
s Operating Margin % Range Over the Past 10 Years
Min: 0.74 Med: 5.02 Max: 6.54
Current: 4.95
NSE:RICOAUTO's Operating Margin % is ranked better than 50.87% of 1325
companies
in the Vehicles & Parts industry
Industry Median: 4.86
vs NSE:RICOAUTO: 4.95
Rico Auto Industries's 5-Year Average Operating Margin % Growth Rate was 31.30% per year.
Rico Auto Industries (NSE:RICOAUTO) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Rico Auto Industries Operating Margin % Related Terms
Rico Auto Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rico Auto Industries's Operating 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: Operating Margin % Comparison
For the Auto Parts subindustry, Rico Auto Industries's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rico Auto Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rico Auto Industries's Operating Margin % falls into.
Rico Auto Industries Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Rico Auto Industries's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Rico Auto Industries (NSE:RICOAUTO) has a Operating Margin % of 3.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rico Auto Industries and its competitors. This is 34% below median its historical median of 5.02. Over the past decade, Rico Auto Industries' Operating Margin % has ranged from 0.74 to 6.54. According to the industry distribution chart, Rico Auto Industries ranks #651 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 49.1%.
Is Rico Auto Industries' Operating Margin % too high?
Rico Auto Industries' current Operating Margin % of 3.31% is 34% below median its 10-year median of 5.02. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 6.54. The Vehicles & Parts industry median Operating Margin % is 4.86. Rico Auto Industries' value of 3.31% is 31.9% below this industry median. Based on the distribution chart, Rico Auto Industries ranks #651 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Rico Auto Industries has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rico Auto Industries' Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Rico Auto Industries ranks #651 out of 1325 companies for Operating Margin %. This puts Rico Auto Industries in the upper half of its industry. The industry median Operating Margin % is 4.86. Rico Auto Industries' value of 3.31% is 31.9% below this benchmark. Historically, Rico Auto Industries' own Operating Margin % has ranged from 0.74 to 6.54 over the past decade. While the company's 10-year median is 5.02 vs. the industry median of 4.86, Rico Auto Industries has consistently been below 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 Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rico Auto Industries's current Operating Margin % of 3.31% is 31.9% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Rico Auto Industries and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rico Auto Industries's current Operating Margin % is 3.31%, which is 34% below median its own 10-year median of 5.02. 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 ₹112.31, compared to a current price of ₹134.74 — trading 20% above its estimated fair value. The current Operating Margin % is 3.31%, which is 34% below median its 10-year median of 5.02 and 31.9% below the Vehicles & Parts industry median of 4.86. Rico Auto Industries' overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Rico Auto Industries (NSE:RICOAUTO), the current Operating Margin % is 3.31% 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 ₹134.74 is trading 20% above its estimated GF Value™ of ₹112.31.
GuruFocus considers Rico Auto Industries to be Modestly Overvalued.
Key valuation signals for NSE:RICOAUTO:
Operating Margin %: 3.31% (34% below median its 10-year median of 5.02)
GF Value™: ₹112.31 vs. price of ₹134.74 (20% above fair value)
Industry Position: 31.9% below the Vehicles & Parts median (#651 of 1325)
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.
72GF Score
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