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Setco Automotive Limited (SETCO) AI Stock Analysis
Setco Automotive Limited
(NSE:SETCO)
The overall score of 42 reflects a company with extreme financial fragility. The primary risk is a severely distressed balance sheet with negative net worth and excessive debt, which overshadows the positive operational turnaround seen in strong free cash flow generation. Technicals are neutral, and valuation metrics are unreliable due to losses. The company's survival hinges on sustaining its recent cash flow improvements.
Setco Automotive Limited (SETCO) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 2.49B
- Dividend Yield
- 83.87%
- Average Volume (3M)
- 12.39K
- Price to Earnings (P/E)
- 0.8
- Beta (1Y)
- 1.10
- Revenue Growth
- -6.53%
- EPS Growth
- ―
- Country
- India
- Employees
- 831
- Sector
- General
- Sector Strength
- 55
- Industry
- Auto - Parts
Setco Automotive Limited Business Overview & Revenue Model
Company Description
Setco Automotive Limited is a global manufacturer and supplier of clutch systems primarily designed for commercial vehicles. Beyond its core clutch products and systems, the company also produces pressure converters and various precision-engineered c...
How the Company Makes Money
SETCO makes money primarily by selling automotive components—most notably clutch systems and related drivetrain parts—to two major customer channels: (1) OEM supply and (2) the replacement/aftermarket. In the OEM channel, revenue is generated through...
Setco Automotive Limited Financial Statement Overview
Summary
Financial performance is extremely polarized. The income statement shows a strong revenue recovery and a return to positive operating profit, but persistent net losses and compressing gross margins are major concerns. The balance sheet is critically distressed with deeply negative equity and excessive debt, indicating technical insolvency. The cash flow statement is the sole bright spot, showing a dramatic positive swing with robust operating and free cash flow. The overall financial health is fragile, with operational promise overshadowed by existential balance sheet risks.
Income Statement
35NegativeBalance Sheet
1Very NegativeCash Flow
75Positive| Breakdown | TTM | Jun 2026 | Mar 2025 | Jun 2024 | Mar 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.05B | 8.05B | 7.19B | 6.41B | 5.46B | 4.35B |
| Gross Profit | 3.26B | 2.56B | 2.42B | 2.84B | 2.24B | 1.62B |
| EBITDA | 1.01B | 976.60M | 1.20B | 708.68M | 320.39M | -1.08B |
| Net Income | 72.10M | -1.20M | -1.05B | -1.13B | -1.52B | -2.24B |
Balance Sheet | ||||||
| Total Assets | 5.34B | 5.34B | 5.75B | 5.56B | 5.74B | 6.39B |
| Cash, Cash Equivalents and Short-Term Investments | 403.80M | 403.80M | 204.90M | 139.49M | 162.16M | 205.07M |
| Total Debt | 10.71B | 10.71B | 11.16B | 9.88B | 8.73B | 7.60B |
| Total Liabilities | 12.43B | 12.43B | 12.69B | 11.22B | 10.05B | 8.79B |
| Stockholders Equity | -7.08B | -5.87B | -6.94B | -4.71B | -3.57B | -2.07B |
Cash Flow | ||||||
| Free Cash Flow | 502.30M | 1.76B | -1.35B | 615.42M | 356.81M | -1.85B |
| Operating Cash Flow | 575.20M | 1.82B | -1.24B | 691.68M | 475.48M | -1.27B |
| Investing Cash Flow | -19.60M | 52.30M | -64.40M | -71.67M | -109.53M | -979.75M |
| Financing Cash Flow | -571.80M | -1.66B | 1.37B | -643.71M | -403.13M | 2.30B |
Setco Automotive Limited Technical Analysis
Price Trends
Market Momentum
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 15.36 is below the 20-day moving average (MA) of 17.12, below the 50-day MA of 17.42, and above the 200-day MA of 14.16, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of 34.14 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
Overall Rating
IN:REMSONSIND69.8Neutral
IN:AUTOIND62Neutral
IN:PPAP61Neutral
IN:BHARATGEAR57Neutral
IN:SUNDRMBRAK55Neutral- IN:SETCO42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:REMSONSIND | 70Neutral | INR 3.01B | 17.46 | ― | 0.35% | 22.29% | 13.00% |
| IN:AUTOIND | 62Neutral | INR 3.19B | 7.97 | ― | ― | 42.21% | 178.69% |
| IN:PPAP | 61Neutral | INR 2.93B | 6.33 | ― | 1.20% | 10.74% | 899.70% |
| IN:BHARATGEAR | 57Neutral | INR 1.47B | 9.95 | ― | 1.04% | 21.67% | 3972.84% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:SUNDRMBRAK | 55Neutral | INR 2.38B | 69.13 | ― | 0.11% | -4.69% | 13.74% |
| IN:SETCO | 42Neutral | INR 2.07B | 0.84 | ― | 83.87% | -6.53% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:SETCO | Setco Automotive Limited | 15.50 | 5.42 | 53.79% | |
| IN:AUTOIND | Autoline Industries Limited | 70.34 | -0.66 | -0.93% | |
| IN:BHARATGEAR | Bharat Gears Limited | 96.00 | -18.50 | -16.16% | |
| IN:PPAP | PPAP Automotive Limited | 207.30 | -53.00 | -20.36% | |
| IN:REMSONSIND | Remsons Industries Limited | 86.30 | -60.42 | -41.18% | |
| IN:SUNDRMBRAK | Sundaram Brake Linings Limited | 605.85 | -192.56 | -24.12% |
Setco Automotive Limited Corporate Events
Setco Automotive posts Q1 FY27 results and moves to streamline group structure
Setco Automotive Limited reported its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, as approved by the board at its 23 October meeting. The company said the results have undergone a limited review by stat...
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 06, 2026