Setco Automotive Limited (SETCO) AI Stock Analysis

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Setco Automotive Limited

(NSE:SETCO)

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Rating:46Neutral

Price Target:INR 15.50▼(-12.82% 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

Revenue ExpansionSteady revenue expansion indicates improving commercial scale and continued demand for the company’s automotive component portfolio. If maintained, this growth can support better fixed-cost absorption, strengthen customer relationships, and provide a broader base for operating improvement over the next several quarters.

Negative Factors

Stressed Balance SheetPersistently negative equity and debt above annual revenue leave the company with limited financial cushion against weaker demand or execution setbacks. This stressed capital structure can constrain investment, increase financing pressure, and make the benefits of operating improvement harder to retain.

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

Market Cap: INR 2.39B
Dividend Yield: 73.12%
Average Volume (3M): 12.41K
Price to Earnings (P/E): 1.0
Beta (1Y): 1.17
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

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

38Negative

Balance Sheet

12Very Negative

Cash Flow

45Neutral

Financial statement breakdown
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

Technical Analysis SentimentPositive

Last Price17.78

Price Trends

50DMA17.32Positive

100DMA17.45Positive

200DMA14.48Positive

Market Momentum

MACD-0.12Negative

RSI59.16Neutral

STOCH82.67Negative

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 17.78 is above the 20-day moving average (MA) of 16.61, above the 50-day MA of 17.32, and above the 200-day MA of 14.48, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 59.16 is Neutral, neither overbought nor oversold. The STOCH value of 82.67 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 (55)

Financial Indicators

IN:SETCO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:REMSONSIND	68Neutral	INR 3.17B	17.73	―	0.33%	19.98%	10.67%
IN:PPAP	65Neutral	INR 3.54B	7.72	―	0.93%	19.93%	2727.93%
IN:BHARATGEAR	57Neutral	INR 1.52B	12.99	―	1.00%	21.67%	3972.84%
IN:SUNDRMBRAK	56Neutral	INR 2.49B	69.33	―	0.10%	-4.69%	13.74%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:AUTOIND	52Neutral	INR 3.47B	7.84	―	―	58.06%	285.47%
IN:SETCO	46Neutral	INR 2.30B	0.96	―	73.12%	-6.53%	―

* General Sector Average

Performance Comparison

IN:SETCO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SETCO	Setco Automotive Limited	17.78	8.19	85.40%
IN:AUTOIND	Autoline Industries Limited	75.53	9.14	13.77%
IN:BHARATGEAR	Bharat Gears Limited	100.57	-7.59	-7.02%
IN:PPAP	PPAP Automotive Limited	266.95	19.37	7.82%
IN:REMSONSIND	Remsons Industries Limited	91.12	-48.62	-34.79%
IN:SUNDRMBRAK	Sundaram Brake Linings Limited	631.70	-118.20	-15.76%

Setco Automotive Limited Corporate Events

Setco Automotive posts Q1 FY27 results and moves to streamline group structure

Oct 23, 2026

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...

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

Setco Automotive Limited AI Stock Analysis