Setco Automotive Limited (SETCO) AI Stock Analysis

• Market Cap: ₹2.51B
• Dividend Yield: N/A
• Average Volume (3M): 31.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 12.77%
• EPS Growth: -2.59%
• Country: IN
• Employees: 831
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.99
• Shares Outstanding: 133,767,270
• 10 Day Avg. Volume: 14,606
• 30 Day Avg. Volume: 31,620
• PEG Ratio: 0.37
• Price to Book (P/B): -0.39
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -2.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹14.00 ▼(-11.28% Downside)

Setco Automotive's overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company's negative valuation metrics further contribute to a low score. Strategic restructuring and improved operational efficiency are essential to address these vulnerabilities.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Setco's products and potential for market expansion, supporting long-term business sustainability.

R&D Investment

Investment in R&D positions Setco to capitalize on industry shifts, such as the transition to electric vehicles, enhancing competitive advantage and future growth.

OEM Partnerships

Strong OEM partnerships ensure a steady revenue stream and enhance Setco's market position, providing stability and growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and require strategic cost management.

High Debt Levels

Elevated debt levels pose a risk to financial stability, limiting flexibility and increasing vulnerability to economic downturns or interest rate hikes.

Liquidity Issues

Liquidity challenges could constrain Setco's ability to invest in growth opportunities and meet short-term obligations, impacting long-term viability.

Setco Automotive Limited Business Overview & Revenue Model

Company Description

Setco Automotive Limited (SETCO) is a leading manufacturer and supplier of automotive components, specializing in the design and production of high-quality valve lifters, rocker arms, and other engine components. The company operates primarily in the automotive sector, serving both original equipment manufacturers (OEMs) and the aftermarket. SETCO is committed to innovation and quality, leveraging advanced manufacturing techniques and rigorous testing to deliver reliable products that meet the evolving needs of the automotive industry.

How the Company Makes Money

SETCO generates revenue through multiple key streams. The primary source of income is the sale of automotive components to OEMs, where it supplies critical engine parts that are integral to vehicle performance and efficiency. Additionally, SETCO earns revenue from the aftermarket segment, providing replacement parts to automotive repair shops and dealerships. The company has established significant partnerships with major automotive manufacturers, allowing it to secure long-term contracts and maintain a steady flow of orders. Furthermore, SETCO invests in research and development to innovate new products, which can open additional revenue streams as the automotive industry shifts towards electric vehicles and more advanced technologies.

Setco Automotive Limited Financial Statement Overview

Summary

Setco Automotive is facing significant financial challenges. Despite revenue growth, profitability remains a major issue with consistent net losses and declining margins. The balance sheet highlights critical solvency concerns with high debt levels and negative equity, while the cash flow statement indicates severe liquidity issues.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.27B	7.19B	6.41B	5.46B	4.35B	3.59B
Gross Profit	3.50B	2.42B	2.84B	2.24B	1.62B	1.39B
EBITDA	1.22B	1.20B	708.68M	320.39M	-1.36B	-395.06M
Net Income	-1.11B	-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	201.90M	204.90M	139.49M	162.16M	205.07M	152.06M
Total Debt	0.00	11.16B	9.88B	8.73B	7.60B	4.70B
Total Liabilities	6.94B	12.69B	11.22B	10.05B	8.79B	6.29B
Stockholders Equity	-6.94B	-6.94B	-4.71B	-3.57B	-2.07B	-242.17M
Cash Flow
Free Cash Flow	0.00	-1.35B	615.42M	356.81M	-1.85B	203.03M
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: Negative
• Last Price: 15.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SETCO, the sentiment is Negative. The current price of 15.78 is below the 20-day moving average (MA) of 17.19, below the 50-day MA of 17.74, and below the 200-day MA of 17.57, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 41.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SETCO.

Setco Automotive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REMSONSIND	65 Neutral	₹5.13B	33.54	―	0.25%	28.08%	3.19%
PRITIKAUTO	62 Neutral	₹2.48B	14.99	―	―	26.03%	-10.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TALBROAUTO	61 Neutral	₹17.95B	18.69	―	0.32%	0.74%	-17.90%
SHIVAMAUTO	45 Neutral	₹3.96B	-6.94	―	―	-11.18%	-22.17%
MUKTAARTS	44 Neutral	₹1.45B	―	―	―	-3.03%	6.44%
SETCO	38 Underperform	₹2.51B	-2.23	―	―	12.77%	-2.59%

Setco Automotive Limited Corporate Events

Setco Automotive Ensures Compliance with SEBI Regulations

Setco Automotive Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This certificate, issued by MUFG Intime India Private Limited, confirms the dematerialization of securities and their listing on stock exchanges, ensuring compliance with regulatory requirements and maintaining transparency in its operations.

Setco Automotive Announces 42nd AGM and Annual Report Release

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

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.