Auto Ancillary · Founded 1982 · www.setcoauto.com · BSE 505075 · NSE SETCO AUTO · ISIN INE878E01021
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Business
Setco Automotive Ltd. is a prominent Indian manufacturer of LCV (Light Commercial Vehicle) and HCV (Heavy Commercial Vehicle) clutches and clutch components. The company's core business model revolves around designing, developing, and manufacturing highly engineered clutch systems for commercial vehicles. It primarily operates as a B2B supplier, serving Original Equipment Manufacturers (OEMs) in the automotive industry and the aftermarket segment. The company generates revenue by selling these clutch assemblies, cover assemblies, and clutch plates to vehicle manufacturers for new vehicle production and to the aftermarket for replacement and servicing needs.
Revenue Mix
Setco Automotive's revenue primarily stems from two major segments:
OEM Sales: Supplying clutch systems directly to commercial vehicle manufacturers for integration into new vehicles. This segment typically accounts for a significant portion of revenue, driven by new vehicle production cycles.
Aftermarket Sales: Providing replacement clutch components and assemblies through its distribution network to service centers, independent repair shops, and end-users. This segment offers relatively stable revenue and often higher margins.
While specific percentage contributions are not provided, both segments are crucial, with OEM sales often being volume-driven and aftermarket sales providing recurring revenue streams.
Industry
Setco operates in the highly competitive Indian auto ancillary industry, which is cyclical and closely linked to the broader economic performance and automotive sector growth. The commercial vehicle clutch segment requires specialized engineering and manufacturing capabilities. Setco Automotive holds a strong position as one of India's largest manufacturers of clutches for commercial vehicles, particularly in the medium and heavy commercial vehicle (M&HCV) categories. It competes with other domestic and international component manufacturers but maintains a significant market share and long-standing relationships with major Indian CV OEMs.
MOAT
Setco Automotive possesses several durable advantages:
Established OEM Relationships & Switching Costs: With a long history of supplying critical components like clutches, Setco has built deep, long-term relationships with major Indian commercial vehicle OEMs. For OEMs, switching suppliers for such critical, integrated components involves significant re-tooling, testing, and validation costs, creating high switching barriers.
Scale and Specialization: As a leading player in the CV clutch segment, Setco benefits from economies of scale in manufacturing, R&D, and procurement. This specialization allows for cost efficiencies and expertise in a niche segment.
Product Quality & Reliability: Clutches are crucial for vehicle performance and safety. Setco's reputation for quality and reliability, built over decades, is a significant advantage in a market where vehicle uptime is critical for commercial operators.
Growth Drivers
Commercial Vehicle Sector Growth: Infrastructure development, e-commerce boom, and overall economic expansion in India are expected to drive demand for new commercial vehicles, directly boosting OEM sales.
Vehicle Scrappage Policy: Government initiatives like the vehicle scrappage policy could lead to increased replacement demand for older commercial vehicles, supporting new vehicle sales.
Aftermarket Expansion: Continuous growth in the vehicle parc (total number of vehicles on road) in India ensures a steady demand for replacement clutch components.
New Product Development & Technology Upgrades: Investment in developing advanced, more efficient, and durable clutch systems can capture market share and cater to evolving OEM requirements and regulatory changes (e.g., emission norms).
Export Opportunities: Expanding into international markets for commercial vehicle clutches can provide additional growth avenues.
Risks
Automotive Industry Cyclicality: The auto ancillary sector is highly susceptible to the cyclical nature of the automotive industry, particularly the commercial vehicle segment. Economic downturns can significantly impact demand.
Raw Material Price Volatility: Fluctuations in prices of key raw materials like steel, aluminum, and other metals can impact manufacturing costs and margins.
Competition: Intense competition from both domestic and international component manufacturers could put pressure on pricing and market share.
Customer Concentration: High dependence on a few large OEM customers means that any significant change in their production volumes or sourcing strategies could have a substantial impact.
Technological Disruption: While clutches are essential for internal combustion engine (ICE) vehicles, the long-term transition towards electric vehicles (EVs) could alter demand for traditional powertrain components, though commercial vehicle electrification might be slower.
Management & Ownership
Setco Automotive is promoted and led by the Founder family, which has a long-standing history and experience in the automotive component manufacturing sector. The ownership structure typically involves significant promoter holding, alongside institutional investors (domestic and foreign), and public shareholders. The management team is expected to leverage its deep industry knowledge and established relationships to navigate the complexities of the auto ancillary business.
Outlook
Setco Automotive benefits from its strong market position and established relationships as a leading supplier of commercial vehicle clutches in India. The anticipated growth in India's commercial vehicle sector, driven by infrastructure development and economic activity, bodes well for its OEM business. Furthermore, a growing vehicle parc supports stable aftermarket demand. However, the company operates in a cyclical industry prone to raw material price volatility and intense competition. While its core product (clutches) is less immediately impacted by EV disruption compared to other powertrain components, the long-term industry transition remains a factor to monitor. Maintaining technological leadership, diversifying customer base, and exploring export opportunities will be key to sustaining growth amidst these inherent industry challenges.
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| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 146 | 165 | 177 | 166 | 160 | 177 | 211 | 179 | 179 | 197 |
| Other Income | 1 | 1 | 0 | 1 | 6 | 2 | 3 | 1 | 1 | 1 |
| Total Income | 146 | 166 | 177 | 167 | 166 | 179 | 214 | 180 | 180 | 197 |
| Total Expenditure | 134 | 140 | 155 | 147 | 140 | 148 | 170 | 157 | 155 | 168 |
| Operating Profit | 13 | 26 | 22 | 20 | 26 | 31 | 44 | 23 | 25 | 30 |
| Interest | 45 | 47 | 46 | 49 | 52 | 57 | 58 | 58 | 61 | 62 |
| Depreciation | 9 | 9 | 9 | 8 | 8 | 8 | 8 | 8 | 7 | 6 |
| Exceptional Income / Expenses | 0 | 0 | -2 | -0 | -0 | 0 | 0 | -1 | 1 | 0 |
| Profit Before Tax | -41 | -29 | -34 | -37 | -35 | -34 | -22 | -44 | -41 | -39 |
| Provision for Tax | 0 | 0 | -6 | -2 | 0 | 0 | -1 | -2 | -0 | 18 |
| Profit After Tax | -41 | -29 | -28 | -35 | -35 | -34 | -22 | -42 | -41 | -57 |
| Adjustments | 7 | 5 | 5 | 6 | 6 | 6 | 4 | 7 | 15 | 6 |
| Profit After Adjustments | -34 | -24 | -24 | -29 | -29 | -29 | -18 | -35 | -27 | -51 |
| Adjusted Earnings Per Share | -2.5 | -1.8 | -1.8 | -2.2 | -2.2 | -2.1 | -1.4 | -2.6 | -2 | -3.8 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 552 | 589 | 570 | 574 | 680 | 470 | 359 | 435 | 546 | 641 | 719 | 766 |
| Other Income | 4 | 6 | 0 | 23 | 6 | 5 | 9 | 10 | 4 | 3 | 12 | 6 |
| Total Income | 556 | 596 | 570 | 597 | 686 | 476 | 368 | 445 | 550 | 643 | 730 | 771 |
| Total Expenditure | 488 | 515 | 511 | 514 | 583 | 435 | 369 | 451 | 505 | 568 | 609 | 650 |
| Operating Profit | 68 | 81 | 59 | 83 | 103 | 41 | -1 | -6 | 45 | 75 | 121 | 122 |
| Interest | 26 | 33 | 51 | 50 | 53 | 57 | 59 | 108 | 155 | 180 | 217 | 239 |
| Depreciation | 16 | 19 | 30 | 32 | 34 | 32 | 34 | 37 | 38 | 35 | 32 | 29 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | -5 | -33 | -102 | -13 | -2 | -1 | 0 |
| Profit Before Tax | 26 | 28 | -22 | 0 | 17 | -54 | -127 | -254 | -161 | -141 | -129 | -146 |
| Provision for Tax | 5 | 6 | -8 | 1 | 17 | -4 | -4 | 3 | 31 | -6 | -3 | 15 |
| Profit After Tax | 21 | 23 | -14 | -1 | -1 | -50 | -123 | -257 | -192 | -135 | -126 | -162 |
| Adjustments | 0 | 0 | 5 | 5 | 3 | 5 | 3 | 33 | 39 | 22 | 21 | 32 |
| Profit After Adjustments | 21 | 23 | -9 | 4 | 3 | -45 | -120 | -224 | -153 | -113 | -105 | -131 |
| Adjusted Earnings Per Share | 1.5 | 1.7 | -0.7 | 0.3 | 0.2 | -3.3 | -9 | -16.8 | -11.5 | -8.4 | -7.9 | -9.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 12% | 18% | 9% | 3% |
| Operating Profit CAGR | 61% | 0% | 24% | 6% |
| PAT CAGR | 0% | 0% | 0% | NAN% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 8% | 39% | -2% | -8% |
| ROE Average | 0% | 0% | -61% | -30% |
| ROCE Average | 17% | 8% | -4% | 3% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 202 | 214 | 189 | 179 | 166 | 105 | -24 | -207 | -357 | -471 | -577 |
| Minority's Interest | 9 | 9 | 8 | 8 | 5 | 0 | -3 | -33 | -73 | -96 | -117 |
| Borrowings | 152 | 191 | 174 | 136 | 89 | 130 | 172 | 684 | 783 | 922 | 1072 |
| Other Non-Current Liabilities | 10 | 9 | -31 | -37 | -20 | -25 | -13 | -21 | 8 | 1 | 11 |
| Total Current Liabilities | 224 | 317 | 352 | 397 | 443 | 435 | 428 | 178 | 206 | 184 | 170 |
| Total Liabilities | 598 | 740 | 693 | 684 | 683 | 644 | 560 | 601 | 566 | 541 | 559 |
| Fixed Assets | 185 | 200 | 330 | 321 | 317 | 301 | 282 | 308 | 285 | 257 | 231 |
| Other Non-Current Assets | 165 | 239 | 64 | 32 | 34 | 79 | 65 | 89 | 86 | 86 | 88 |
| Total Current Assets | 249 | 302 | 299 | 331 | 332 | 264 | 213 | 204 | 196 | 197 | 240 |
| Total Assets | 598 | 740 | 693 | 684 | 683 | 644 | 560 | 601 | 566 | 541 | 559 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 5 | 9 | 3 | 9 | 5 | 11 | 11 | 14 | 21 | 17 | 14 |
| Cash Flow from Operating Activities | 13 | 73 | 43 | 92 | 109 | 92 | 26 | -127 | 48 | 69 | 89 |
| Cash Flow from Investing Activities | -118 | -111 | -16 | 18 | -26 | -56 | -17 | -98 | -11 | -7 | -5 |
| Cash Flow from Financing Activities | 107 | 33 | -19 | -111 | -74 | -32 | -6 | 232 | -40 | -64 | -77 |
| Net Cash Inflow / Outflow | 3 | -6 | 7 | -1 | 8 | 5 | 3 | 7 | -4 | -2 | 6 |
| Closing Cash & Cash Equivalent | 9 | 3 | 9 | 5 | 11 | 11 | 14 | 21 | 17 | 14 | 20 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 1.55 | 1.74 | -0.65 | 0.28 | 0.22 | -3.33 | -8.98 | -16.77 | -11.46 | -8.42 | -7.86 |
| CEPS(Rs) | 2.73 | 3.11 | 1.24 | 2.34 | 2.47 | -1.29 | -6.7 | -16.45 | -11.5 | -7.51 | -7.05 |
| DPS(Rs) | 0.6 | 0.8 | 0.65 | 0.8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 12.95 | 13.86 | 14.12 | 13.38 | 12.36 | 7.81 | -1.81 | -15.49 | -26.72 | -35.19 | -43.11 |
| Core EBITDA Margin(%) | 11.01 | 11.92 | 9.7 | 10.43 | 14.26 | 7.55 | -2.8 | -3.64 | 7.38 | 11.31 | 15.19 |
| EBIT Margin(%) | 9.04 | 9.94 | 4.77 | 8.78 | 10.19 | 0.62 | -18.93 | -33.52 | -1.17 | 5.98 | 12.28 |
| Pre Tax Margin(%) | 4.5 | 4.57 | -3.63 | 0.08 | 2.46 | -11.49 | -35.37 | -58.42 | -29.54 | -22.07 | -17.98 |
| PAT Margin (%) | 3.55 | 3.68 | -2.24 | -0.17 | -0.08 | -10.54 | -34.32 | -59.19 | -35.24 | -21.09 | -17.58 |
| Cash Profit Margin (%) | 6.3 | 6.69 | 2.74 | 5.39 | 4.85 | -3.66 | -24.94 | -50.58 | -28.19 | -15.69 | -13.11 |
| ROA(%) | 3.93 | 3.42 | -1.9 | -0.14 | -0.08 | -7.47 | -20.48 | -44.36 | -32.96 | -24.41 | -22.97 |
| ROE(%) | 12.39 | 12.79 | -7.28 | -0.52 | -0.32 | -36.75 | -307.22 | 0 | 0 | 0 | 0 |
| ROCE(%) | 12.55 | 11.52 | 4.85 | 8.63 | 12.65 | 0.56 | -14.28 | -29.38 | -1.2 | 7.42 | 16.71 |
| Receivable days | 46.56 | 55.58 | 70.57 | 78.96 | 63.12 | 60.29 | 46.79 | 36.8 | 27.12 | 22.69 | 28.1 |
| Inventory Days | 78.83 | 80.91 | 84.78 | 94.6 | 93.47 | 142.1 | 159.98 | 102.7 | 78.48 | 71.69 | 67 |
| Payable days | 55.07 | 71.13 | 105.87 | 124.09 | 118.84 | 185 | 198.4 | 134.14 | 109.84 | 107.86 | 104.41 |
| PER(x) | 31.11 | 16.76 | 0 | 182.03 | 153.18 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 3.72 | 2.1 | 2.44 | 3.85 | 2.67 | 0.72 | -7.76 | -0.89 | -0.2 | -0.18 | -0.48 |
| Dividend Yield(%) | 1.25 | 2.75 | 1.88 | 1.55 | 3.03 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 1.72 | 1.33 | 1.54 | 1.86 | 1.17 | 1 | 1.77 | 2.12 | 1.7 | 1.65 | 1.91 |
| EV/Core EBITDA(x) | 13.91 | 9.7 | 14.81 | 12.86 | 7.73 | 11.58 | -453.13 | -155.08 | 20.7 | 14.05 | 11.34 |
| Net Sales Growth(%) | 33.22 | 6.88 | -3.36 | 0.77 | 18.54 | -30.88 | -23.61 | 21.08 | 25.42 | 17.43 | 12.17 |
| EBIT Growth(%) | 27.06 | 17.94 | -53.1 | 75.52 | 36.31 | -95.8 | -2435.28 | -114.41 | 95.61 | 698.05 | 130.25 |
| PAT Growth(%) | 13.09 | 11.11 | -159.37 | 92.91 | 43.45 | -8994.42 | -148.81 | -108.83 | 25.33 | 29.71 | 6.52 |
| EPS Growth(%) | 13.26 | 12.23 | -137.66 | 143.3 | -24.05 | -1648.93 | -169.42 | -86.85 | 31.68 | 26.48 | 6.74 |
| Debt/Equity(x) | 1.84 | 2.14 | 2.25 | 2.16 | 2.22 | 3.9 | -19.16 | -3.67 | -2.44 | -2.1 | -1.93 |
| Current Ratio(x) | 1.11 | 0.95 | 0.85 | 0.83 | 0.75 | 0.61 | 0.5 | 1.15 | 0.95 | 1.07 | 1.41 |
| Quick Ratio(x) | 0.52 | 0.5 | 0.46 | 0.42 | 0.33 | 0.19 | 0.18 | 0.53 | 0.35 | 0.38 | 0.61 |
| Interest Cover(x) | 1.99 | 1.85 | 0.57 | 1.01 | 1.32 | 0.05 | -1.15 | -1.35 | -0.04 | 0.21 | 0.41 |
| Total Debt/Mcap(x) | 0.49 | 1.02 | 0.92 | 0.56 | 0.83 | 5.39 | 2.47 | 4.1 | 12.26 | 11.89 | 4.05 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 |
| FII | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.03 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 40.67 | 40.67 | 40.67 | 40.67 | 40.67 | 40.67 | 40.67 | 40.67 | 40.67 | 40.72 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 |
| FII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 5.44 | 5.44 | 5.44 | 5.44 | 5.44 | 5.44 | 5.44 | 5.44 | 5.44 | 5.45 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +12% | +18% | +9% | +3% |
| Operating Profit CAGR | +61% | — | +24% | +6% |
| PAT CAGR | — | — | — | 0% |
| Share Price CAGR | +8% | +39% | -2% | -8% |
| ROE Average | 0% | 0% | -61% | -30% |
| ROCE Average | +17% | +8% | -4% | +3% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 | 59.25 |
| FII | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.03 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 | 40.75 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 | 7.93 |
| FII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 | 5.45 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 | 13.38 |
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