Setco Automotive Limited (SETCO) AI Stock Analysis

• Market Cap: ₹2.15B
• Dividend Yield: N/A
• Average Volume (3M): 7.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 12.27%
• EPS Growth: 0.16%
• Country: IN
• Employees: 831
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): -2.61
• Shares Outstanding: 133,767,270
• 10 Day Avg. Volume: 7,222
• 30 Day Avg. Volume: 7,942
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹14.50
• Price Target Upside: -11.59% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ₹14.50 ▼(-11.59% Downside)

Setco Automotive's overall stock score is primarily driven by its significant financial challenges, including negative profitability, solvency concerns, and liquidity issues. The bearish technical indicators further contribute to a negative outlook. Valuation metrics add additional risk, as negative earnings and the lack of dividends weaken investor sentiment.

Setco Automotive Limited Business Overview & Revenue Model

Company Description

Setco Automotive Limited (SETCO) is a leading manufacturer and supplier in the automotive industry, specializing in the production of clutches for commercial vehicles. The company operates primarily in the automotive sector, providing high-quality products that are essential components for vehicle operation. Setco's core products include clutches and related components, which are used in a variety of commercial vehicles, including trucks and buses, serving both original equipment manufacturers (OEMs) and the aftermarket.

How the Company Makes Money

Setco Automotive Limited generates revenue primarily through the sale of its clutch products and components. The company's key revenue streams include supplying clutches to original equipment manufacturers (OEMs) for installation in new vehicles and providing replacement clutches and parts to the aftermarket. Setco's earnings are bolstered by its strong relationships with major OEMs and its extensive distribution network for aftermarket sales. Additionally, the company may engage in partnerships or collaborations that enhance its product offerings and market reach, further contributing to its revenue.

Setco Automotive Limited Financial Statement Overview

Summary

Setco Automotive is facing significant financial challenges. Despite revenue growth, the company struggles with profitability, as evidenced by negative net profit margins and declining gross profit margins. The balance sheet is concerning, with negative stockholders' equity indicating potential solvency issues. Cash flow is also problematic, with negative operating cash flows and reliance on financing, highlighting liquidity concerns.

Income Statement

Setco Automotive shows a mixed financial performance. Despite a consistent increase in total revenue over the years, with a notable revenue growth rate of 14.11% from 2024 to 2025, the company has faced persistent profitability challenges. The gross profit margin has been decreasing, and net profit margins are negative due to sustained net losses, indicating ongoing operational inefficiency. The EBIT and EBITDA margins improved in 2025, yet remain below industry standards, highlighting the need for cost optimization.

Balance Sheet

The balance sheet reveals significant financial instability. Setco Automotive has a negative stockholders' equity, indicating a critical financial position and potential solvency issues. The debt-to-equity ratio is concerning due to high total debt and negative equity, which poses a substantial risk. Despite this, the slight increase in total assets may suggest efforts in expansion or asset acquisition.

Cash Flow

Setco Automotive's cash flow situation is concerning, with negative free cash flow growth and negative operating cash flows, particularly in 2025. The operating cash flow to net income ratio is unfavorable, reflecting challenges in converting profits into cash. The reliance on financing cash flow indicates potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.74B	7.19B	6.30B	5.46B	4.35B	3.59B
Gross Profit	2.75B	2.42B	2.84B	2.24B	1.62B	1.39B
EBITDA	969.30M	1.20B	708.68M	320.39M	-1.36B	-395.06M
Net Income	-1.10B	-1.05B	-1.13B	-1.52B	-2.24B	-1.20B
Balance Sheet
Total Assets	0.00	5.75B	5.56B	5.74B	6.39B	6.02B
Cash, Cash Equivalents and Short-Term Investments	202.00M	204.90M	139.49M	162.16M	205.07M	141.49M
Total Debt	0.00	11.16B	9.88B	8.73B	7.60B	4.70B
Total Liabilities	6.34B	12.69B	11.22B	10.05B	8.79B	6.29B
Stockholders Equity	-6.34B	-6.94B	-4.71B	-3.57B	-2.07B	-242.17M
Cash Flow
Free Cash Flow	0.00	-1.35B	615.42M	356.81M	-2.43B	200.97M
Operating Cash Flow	0.00	-1.24B	691.68M	475.48M	-1.27B	257.75M
Investing Cash Flow	0.00	-64.40M	-71.67M	-109.53M	-979.75M	-167.01M
Financing Cash Flow	0.00	1.37B	-643.71M	-403.13M	2.30B	-61.05M

Setco Automotive Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SETCO, the sentiment is Neutral. The current price of 16.4 is above the 20-day moving average (MA) of 16.07, below the 50-day MA of 17.07, and below the 200-day MA of 16.95, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SETCO.

Setco Automotive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TALBROAUTO	67 Neutral	₹15.86B	16.51		0.27%	3.71%	-15.14%
REMSONSIND	63 Neutral	₹4.32B	28.22		0.26%	26.47%	-4.53%
PRITIKAUTO	62 Neutral	₹2.98B	17.31		―	4.41%	-20.08%
Sector *	56 Neutral	HK$25.48B	5.05	-2.69%	5.69%	-0.45%	-52.99%
SHIVAMAUTO	46 Neutral	₹3.66B	―		―	-3.34%	-61.12%
MUKTAARTS	44 Neutral	₹1.82B	―		―	-14.62%	-87.37%
SETCO	39 Underperform	₹2.15B	―		―	12.27%	0.16%