RRico AutoExecutive Cockpit

Value Creation Plan

The shareholder-value view — start → today → target, the multiple-expansion that machining, value-add & EV content earn, plus deleveraging and the savings programs behind it.

Rico Auto Industries Limited · FY26 (Mar'26, actuals)
Leading Indian aluminium high-pressure die-casting auto-components maker
7,500 employees · 8+ plants & units · 12 export markets
Executive read· the answer, then the moves

Enterprise value has gone from ₹1.55k Cr at the start of the journey to ₹2.45k Cr today; ₹2.49k Cr of the plan remains to the ₹4.94k Cr target. The prize is multiple expansion + deleveraging — push machined & value-added mix from 22% toward 30% and bank the ₹53 Cr of open cost & capex-ROI savings.

4 of 4 headline metrics improving vs prior · still off target: Total Revenue ₹2,477 Cr vs ₹2,700 Cr, EBITDA ₹223 Cr vs ₹280 Cr, EBITDA Margin 9.0% vs 12.0%

Do now — ranked by urgency
  1. 1
    Capture the ₹2.49k Cr of value remaining to targetWatch
    Why it matters

    ₹2.49k Cr of enterprise value stands between today's ₹2.45k Cr and the ₹4.94k Cr target plan — the swing that compounds shareholder value.

    What's driving it
    • EV ₹1.55k Cr → ₹2.45k Cr today → ₹4.94k Cr target
    • ₹905 Cr created, ₹2.49k Cr remaining
    FYI
    • Driven by EBITDA growth, deleveraging and multiple re-rating
    • Machined & value-added mix 22% → Castings + light machining tier (7–9×)
  2. 2
    Bank the ₹53 Cr of open savings run-rateWatch
    Why it matters

    ₹53 Cr of ₹93 Cr run-rate cost & capex-ROI savings is still to capture — the same work that finishes the modernization and lifts blended margin.

    What's driving it
    • Savings ₹93 Cr run-rate, ₹40 Cr banked
    • 1 of 6 workstreams behind plan
    FYI

    Energy/renewables, scrap/yield, aluminium procurement & Industry-4.0 automation

  3. 3
    Re-rate the multiple: push machined & value-added mix to 30%+Opportunity
    Why it matters

    Climbing toward the EV / value-add-led tier is worth 2–3 EBITDA turns — on ₹223 Cr of EBITDA that is ₹446 Cr–₹669 Cr from re-rating alone.

    What's driving it
    • Machined & value-added mix 22% · Castings + light machining tier
    • EV / machined value-add revenue worth ₹790 Cr at ~2.0× (₹593 Cr–₹988 Cr)
    FYI
    • EV / machined value-add revenue ₹395 Cr commands a premium 1.5–2.5× EV/revenue
    • Move raw castings → machined → assembled & EV content
⚙️ Margin & operational excellenceStep 2 of 7 · today → mid-term value-creation leversStrategy & GoalsEnterprise 360All journeys
🌐 Enterprise 360 modules· on Value Creation PlanBrowse all 31 views ▾
● LiveBuilt forBoard / Investors· thesis progress & shareholder valueChairman / CFO· what moves the multipleStrategy· growth & capex in the plan

Rico Auto runs a Value Creation Plan from start to target. The business has grown to ₹2.48k Cr of revenue; the prize from here is multiple expansion + deleveraging — moving up the value chain re-rates the business, and high-margin machined, value-add & EV revenue is valued at a premium. This is the screen that tracks it.

Data backing: vcp (value-creation plan) · synergy_prog (savings) · service_line (machined & value-added) · kpi · sector multiple conventions
Enterprise value · start → today → target (EBITDA × multiple)
Start of journey
₹1.55k Cr
₹172 Cr EBITDA × 9×
Today (FY26)
₹2.45k Cr
₹223 Cr EBITDA × 11×
Target (plan)
₹4.94k Cr
₹380 Cr EBITDA × 13×
Value created · remaining
₹905 Cr · ₹2.49k Cr
The plan

Value-creation workstreams

Each lever shown start → today → target, with progress through the plan.

WorkstreamLeverStartTodayTargetProgressStatus
Scale the platformCapacity + new platforms + exports₹2,160 Cr₹2,477 Cr₹3,200 Cr
On track
Move up the value chainMachining / assemblies / EV content18%22%30%
On track
Expand marginMix + automation + energy/scrap8%9%12%
Behind
Grow profitScale × margin₹172 Cr₹223 Cr₹380 Cr
On track
DeleverFCF + disciplined capex + working capital3.6×3.08×
On track
Re-rate the multipleEV / margin-driven re-rating11×13×
On track
Why value-add re-rates the business

The multiple ladder

Machined & value-added mix moves the EBITDA multiple. At 22%, Rico Auto sits in the castings + light machining tier — every point toward 30% pulls it up.

Commodity caster
machined & value-added mix <15%
5–7×
Castings + light machining · Rico Auto today
machined & value-added mix 15–25%
7–9×
Machined & value-added integrator
machined & value-added mix 25–35%
9–12×
EV / value-add-led platform
machined & value-added mix 35%+
12–16×

Climbing toward the EV / value-add-led tier is worth 2–3 EBITDA turns — on ₹223 Cr of EBITDA, that's ₹446 Cr₹669 Cr of enterprise value from re-rating alone.

The premium engine

Machined value-add & EV · a premium multiple

High-margin machined, assembled & EV revenue (oil/water pumps, EV components, aero-defence, machined modules) commands a richer EV/revenue than raw castings — separate from, and on top of, the blended multiple.

₹790 Crpremium-engine value at ~2.0× revenue (₹593 Cr₹988 Cr at 1.5–2.5×)
Machined value-add & EV revenue (pumps, EV, aero, machined modules)₹395 Cr
Target machined value-add & EV revenue₹600 Cr
Implied value @ 1.5× / 2.0× / 2.5×₹593 Cr / ₹790 Cr / ₹988 Cr

So what: scaling machined assemblies, oil/water pumps, EV components and aero-defence parts creates value at a premium multiple — well above the 11× the blended company trades at. It's the single highest-return rupee in the plan.

How savings actually get captured

₹93 Cr of run-rate cost & capex-ROI savings · ₹40 Cr banked

The concrete programs behind the savings % — not a slogan, a checklist.

Aluminium / input procurement consolidation
One buying team; metal pass-through & preferred panel (Hindalco, Vedanta, NALCO).
₹26 CrIn progress
Energy / power cost & renewables
On-site solar + power-cost optimization; energy is a top input cost.
₹22 CrCaptured
Scrap / yield reduction (die-casting)
Lower metal scrap & rework lifts gross margin directly.
₹18 CrCaptured
Industry-4.0 automation (HPDC / CNC)
Automation & digitization lift OEE and cut conversion cost.
₹16 CrIn progress
SAP S/4 + MES + GenAI shared services
Standardize platforms; retire legacy plant ERPs; AI/GenAI R&D.
₹11 CrPlanned

Rico Auto's cost & efficiency playbook in action: on-site solar & power-cost optimization, scrap/yield reduction in die-casting, one aluminium/input buying team, and Industry-4.0 (HPDC/CNC) automation. ₹53 Cr of run-rate is still to capture — the same work behind the margin-expansion (9%→12%) thesis.