Setco Automotive Limited (SETCO) AI Stock Analysis

• Market Cap: ₹2.16B
• Dividend Yield: N/A
• Average Volume (3M): 15.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: 12.27%
• EPS Growth: 0.16%
• Country: IN
• Employees: 831
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Auto - Parts
• EPS (TTM): -2.61
• Shares Outstanding: 133,767,270
• 10 Day Avg. Volume: 28,172
• 30 Day Avg. Volume: 15,600
• 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: ₹15.50
• Price Target Upside: 1.11% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ₹15.50 ▲(1.11% Upside)

Setco Automotive's overall stock score is primarily impacted by its poor financial performance, characterized by significant profitability, solvency, and liquidity challenges. Technical analysis provides mixed signals, with bearish trends and potential overbought conditions. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

Setco Automotive Limited Business Overview & Revenue Model

Company Description

Setco 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 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 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

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

Setco Automotive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 15.33 is above the 20-day moving average (MA) of 15.26, below the 50-day MA of 16.52, and below the 200-day MA of 17.24, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 60.93 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
PRITIKAUTO	64 Neutral	₹2.89B	15.95		―	13.93%	0.25%
TALBROAUTO	64 Neutral	₹16.01B	16.67		0.27%	3.71%	-15.14%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
REMSONSIND	61 Neutral	₹4.17B	27.28		0.24%	26.47%	-4.62%
SHIVAMAUTO	45 Neutral	₹3.62B	―		―	-9.04%	-10.81%
MUKTAARTS	44 Neutral	₹1.60B	―		―	-14.62%	-87.37%
SETCO	39 Underperform	₹2.16B	―		―	12.27%	0.16%