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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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Neutral 46 (OpenAI - Gpt-5.6Sol)
Rating:46Neutral
Price Target:
₹17.00
▼(-8.90% Downside)
Action:Reiterated
Date:09/06/26
The score is held down primarily by high financial risk from a stressed balance sheet (negative equity and heavy debt) despite improving operations. Technicals are neutral-to-slightly constructive, and valuation is difficult to support due to losses and an unusually high dividend yield that may carry sustainability risk.
Positive Factors
Steady Revenue Expansion
Consistent revenue expansion indicates sustained demand for Setco’s clutch and drivetrain products across its automotive customer base. Continued top-line growth can support operating leverage, deepen customer relationships, and provide a foundation for improving profitability as volumes and execution develop over the next several quarters.
Negative Factors
Stressed Balance Sheet
Persistent negative equity and debt that exceeds annual revenue leave Setco with a limited financial cushion against weaker demand or execution setbacks. This stressed capital structure can constrain investment, increase refinancing pressure, and make the benefits of operating improvement harder to retain.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Expansion
Consistent revenue expansion indicates sustained demand for Setco’s clutch and drivetrain products across its automotive customer base. Continued top-line growth can support operating leverage, deepen customer relationships, and provide a foundation for improving profitability as volumes and execution develop over the next several quarters.
Read all positive factors

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

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-engineere...
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 thro...

Setco Automotive Limited Financial Statement Overview

Summary
Income statement and cash flow show a turnaround (steady revenue growth, improved operating profitability, and strong 2026 operating/free cash flow), but the balance sheet is a major constraint: persistently negative equity and very high debt keep financial risk elevated. Net income remains negative across all years shown, despite nearing breakeven in 2026.
Income Statement
38
Negative
Balance Sheet
12
Very Negative
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Jun 2024Mar 2023Jun 2022
Income Statement
Total Revenue7.65B8.05B7.19B6.41B5.46B4.35B
Gross Profit3.32B2.56B2.42B2.84B2.24B1.62B
EBITDA1.21B976.60M1.20B708.68M320.39M-1.36B
Net Income-1.31B-1.20M-1.05B-1.13B-1.52B-2.24B
Balance Sheet
Total Assets0.005.34B5.75B5.56B5.74B6.39B
Cash, Cash Equivalents and Short-Term Investments186.50M403.80M204.90M139.49M162.16M205.07M
Total Debt0.0010.71B11.16B9.88B8.73B7.60B
Total Liabilities7.80B12.43B12.69B11.22B10.05B8.79B
Stockholders Equity-7.80B-7.08B-6.94B-4.71B-3.57B-2.07B
Cash Flow
Free Cash Flow502.30M1.76B-1.35B615.42M356.81M-1.85B
Operating Cash Flow575.20M1.82B-1.24B691.68M475.48M-1.27B
Investing Cash Flow-19.60M52.30M-64.40M-71.67M-109.53M-979.75M
Financing Cash Flow-571.80M-1.66B1.37B-643.71M-403.13M2.30B

Setco Automotive Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.66
Price Trends
50DMA
17.67
Negative
100DMA
16.36
Positive
200DMA
12.51
Positive
Market Momentum
MACD
0.05
Negative
RSI
47.77
Neutral
STOCH
42.78
Neutral
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 18.66 is above the 20-day moving average (MA) of 17.61, above the 50-day MA of 17.67, and above the 200-day MA of 12.51, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹1.58B10.540.97%24.00%125.67%
62
Neutral
₹3.68B7.980.98%10.74%899.70%
60
Neutral
₹3.45B20.040.20%22.29%13.00%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₹3.93B9.891.39%42.21%178.69%
50
Neutral
₹2.95B81.230.09%-4.69%13.74%
46
Neutral
₹2.34B32.4174.29%13.31%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SETCO
Setco Automotive Limited
17.50
9.64
122.59%
IN:AUTOIND
Autoline Industries Limited
86.66
10.10
13.19%
IN:BHARATGEAR
Bharat Gears Limited
103.05
8.32
8.78%
IN:PPAP
PPAP Automotive Limited
260.00
44.37
20.58%
IN:REMSONSIND
Remsons Industries Limited
99.05
-25.47
-20.45%
IN:SUNDRMBRAK
Sundaram Brake Linings Limited
750.00
-25.43
-3.28%
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 06, 2026