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Setco Automotive Limited (IN:SETCO)
:SETCO
India Market
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Setco Automotive Limited (SETCO) AI Stock Analysis

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IN:SETCO

Setco Automotive Limited

(SETCO)

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Underperform 40 (OpenAI - 4o)
Rating:40Underperform
Price Target:
₹14.50
▼(-21.92% Downside)
Setco Automotive's overall stock score is primarily impacted by its weak financial performance, characterized by significant profitability, solvency, and liquidity challenges. Technical analysis indicates a bearish trend, while valuation metrics highlight concerns with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall score.

Setco Automotive Limited (SETCO) vs. iShares MSCI India ETF (INDA)

Setco Automotive Limited Business Overview & Revenue Model

Company DescriptionSetco Automotive Limited manufactures and sells clutches for commercial vehicles in India and internationally. It offers clutch products and systems, pressure converters, and precision components. The company primarily offers its products under the LIPE and Lava Cast brand names. It serves commercial and military trucks, heavy-medium-light-duty trucks, marine, off highway, and agricultural equipment sectors. The company was formerly known as Gujrat Setco Clutch Limited and changed its name to Setco Automotive Limited in November 2005. SETCO Automotive Limited was founded in 1982 and is headquartered in Mumbai, India.
How the Company Makes MoneySetco 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 faces significant financial challenges. Despite revenue growth, profitability is a major issue with consistent net losses and declining margins. The balance sheet shows critical solvency concerns with high debt levels and negative equity, while the cash flow statement indicates severe liquidity issues.
Income Statement
52
Neutral
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
35
Negative
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
28
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2022Dec 2021Dec 2021
Income Statement
Total Revenue6.74B7.19B6.30B5.46B3.59B4.35B
Gross Profit2.75B2.42B2.84B2.24B1.39B1.62B
EBITDA969.30M1.20B708.68M320.39M-395.06M-1.36B
Net Income-1.10B-1.05B-1.13B-1.52B-1.20B-2.24B
Balance Sheet
Total Assets0.005.75B5.56B5.74B6.02B6.39B
Cash, Cash Equivalents and Short-Term Investments202.00M204.90M139.49M162.16M141.49M205.07M
Total Debt0.0011.16B9.88B8.73B4.70B7.60B
Total Liabilities6.34B12.69B11.22B10.05B6.29B8.79B
Stockholders Equity-6.34B-6.94B-4.71B-3.57B-242.17M-2.07B
Cash Flow
Free Cash Flow0.00-1.35B615.42M356.81M200.97M-2.43B
Operating Cash Flow0.00-1.24B691.68M475.48M257.75M-1.27B
Investing Cash Flow0.00-64.40M-71.67M-109.53M-167.01M-979.75M
Financing Cash Flow0.001.37B-643.71M-403.13M-61.05M2.30B

Setco Automotive Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.57
Price Trends
50DMA
16.04
Positive
100DMA
17.10
Positive
200DMA
17.75
Positive
Market Momentum
MACD
0.81
Negative
RSI
63.89
Neutral
STOCH
86.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SETCO, the sentiment is Positive. The current price of 18.57 is above the 20-day moving average (MA) of 16.41, above the 50-day MA of 16.04, and above the 200-day MA of 17.75, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SETCO.

Setco Automotive Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹4.27B27.8711.44%0.25%26.47%-4.62%
64
Neutral
₹2.82B15.587.15%13.93%0.25%
64
Neutral
₹18.34B19.1014.93%0.40%3.71%-15.16%
51
Neutral
₹4.08B-7.14-152.60%-9.04%-10.81%
45
Neutral
₹1.53B-9.6136.76%-14.62%-85.05%
40
Underperform
₹2.48B12.27%0.20%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SETCO
Setco Automotive Limited
18.57
6.67
56.05%
IN:MUKTAARTS
Mukta Arts Limited
67.80
-36.35
-34.90%
IN:PRITIKAUTO
Pritika Auto Industries Ltd
16.92
-9.76
-36.58%
IN:REMSONSIND
Remsons Industries Limited
122.30
-97.57
-44.38%
IN:SHIVAMAUTO
Shivam Autotech Limited
31.00
-13.30
-30.02%
IN:TALBROAUTO
Talbros Automotive Components Limited
297.05
-33.39
-10.10%

Setco Automotive Limited Corporate Events

Setco Automotive Announces 42nd AGM and Annual Report Release
Sep 2, 2025

Setco Automotive Limited has announced the scheduling of its 42nd Annual General Meeting (AGM) for September 25, 2025, at its registered office in Gujarat, India. The company, which is listed on both the BSE and NSE, has made the AGM notice and annual report for the financial year 2024-25 available on its website. This meeting will adhere to the guidelines set by the Ministry of Corporate Affairs and the Securities and Exchange Board of India, and shareholders are encouraged to participate electronically. The cut-off date for determining eligible shareholders for voting is set for September 17, 2025.

Setco Automotive Partners with VNIT Nagpur for Automotive Innovation
Aug 19, 2025

Setco Automotive Limited has announced a strategic collaboration between its subsidiary, Setco Auto Systems Pvt. Ltd., and Visvesvaraya National Institute of Technology (VNIT), Nagpur, to drive joint research and innovation in automotive technology. This partnership aims to foster industry-academia synergy, focusing on next-generation automotive systems, including drivetrains, electric mobility, and sustainable vehicle solutions. The collaboration will also establish a dedicated Clutch Research Laboratory at VNIT, providing students with practical industry exposure. This initiative is expected to enhance Setco’s R&D capabilities and contribute to the development of advanced, sustainable mobility solutions, while nurturing young engineering talent.

Setco Automotive Reports Strong Q1 FY26 Results and Strategic Product Expansions
Aug 12, 2025

Setco Automotive Limited reported a strong performance for Q1 FY26, with revenues increasing by 7.8% year-on-year to Rs. 178.8 crore, driven by robust demand for its products. The company’s EBITDA also grew by 11.9%, reflecting higher sales and operational efficiencies. Setco has expanded its product portfolio with the launch of an automotive water pump and suspension solutions, enhancing its presence in the commercial vehicle space. The company’s strategic expansions and focus on innovation position it well for future growth, with positive traction from new products and deeper engagement with OEMs and aftermarket customers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 16, 2025