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Setco Automotive Ltd. Stock Analysis

Small Cap
Evaluated by 554 users | BSE: 505075 | NSE: SETCO |
Auto Ancillary
Setco Automtotive Limited was established in 1982, it was jointly promoted by the Sheth Family & The Govt. of Gujarat. In 1984 the Company's Kalol Plant went into Production of Clutches for the Automotive Industry in a small way.Setco Automotive is a premier manufacturer of clutch products...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 17.86%24.14%25.37%13.64%8.55%10.56%12.24%9.13%9.89%12.09%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 215309375359353485531537513613
Y-o-Y Gr. Rt.-43.7%21.4%-4.1%-1.8%37.6%9.4%1.1%-4.3%19.5%
Adjusted EPS (Rs.) 1.342.453.221.951.021.732.361.581.972.64
Y-o-Y Gr. Rt.-82.8%31.4%-39.4%-47.7%69.6%36.4%-33.1%24.7%34%
Book Value per Share (Rs.) 4.776.659.2610.7411.8612.9314.4917.0318.4119.61
Adjusted Net Profit 17.732.442.62613.623.231.621.126.335.3
Net Op. Cash Flow (Rs. Cr.) 21.826.236.31739.11066.550.362.776.8
Debt to Cash Flow from Ops 3.743.63.348.413.8121.23.55.173.832.96
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Setco Automotive Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.4%11.7%4.9%19.5%
Adjusted EPS 7.8%21%3.8%34%
Book Value per Share 1710.610.66.5
Share Price -8.4% -25.6% -35.7% -38.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 31.6242.8340.2717.67.611.9614.979.3811.1113.85
Operating Profit Margin (%) 17.8519.0617.6913.319.6911.513.8212.8310.9814.87
Net Profit Margin (%) 8.2510.511.357.233.864.775.953.935.135.75
Debt to Equity 1.291.070.990.990.941.231.21.140.980.87
Working Capital Days 115117138177204166180189168157
Cash Conversion Cycle 57556388916765654837
Entity Percentage Holding
Promoters 59.15%
Institutions 0.11%
Non-Institutions 40.74%
Pledged *38.6854.9057.1865.6277.8677.8277.8292.1396.4396.43
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Setco Automotive's performance infers:

Setco Automotive earnings have grown by 21%, whereas share price has depreciated -25.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Setco Automotive share prices over the last 10 years. Here is what we found out:

Setco Automotive share price has depreciated -4.5% annually over the past ten years.

Setco Automtotive Limited was established in 1982, it was jointly promoted by the Sheth Family & The Govt. of Gujarat. In 1984 the Company's Kalol Plant went into Production of Clutches for the Automotive Industry in a small way.

Setco Automotive is a premier manufacturer of clutch products for the Automotive and hydraulic products for Construction Equipment Industry. In addition Setco also manufactures precision engineering components like complex and deep drawn pressings and forgings

Setco Automtotive Limited was established in 1982, it was jointly promoted by the Sheth Family & The Govt. of Gujarat. In 1984 the Company's Kalol Plant went into Production of Clutches for the Automotive Industry in a small way.

Setco Automotive is a premier manufacturer of clutch products for the Automotive and hydraulic products for Construction Equipment Industry. In addition Setco also manufactures precision engineering components like complex and deep drawn pressings and forgings and castings that are machined and heat treated.

They have corporate head quarters in Mumbai, India and have 4 manufacturing facilities; 2 in India and 1 each in the UK and USA. Setco UK is also the R&D hub for Setco's clutch products and the technology provider to the group globally. Setco USA is the R&D hub for the hydraulics products.

As the automotive industry is a very dyanamic one with volatile costs, varied customer demand and a high level of globalization, there is thus a requirement foring constant innovation coupled with a continuous process of research and development. Setco believes in partnering with the end users and vehicle manufacturers to provide them with value added solutions and services on a global scale.

The company is committed to delivering optimal customer care and satisfaction. They are committed to offering an entire spectrum of clutches of the highest quality and globally competitive prices. They are conscious about the environment they operate in and have a strong focus on corporate social responsibility.

Product range of the company includes:

  • Construction EquipmentHydraulics - Pressure Converters for the Construction Equipment industry.
  • Truck & Automotive- Clutch Systems for Medium and Heavy Commercial Vehicle Industry.
  • - Pressings: Deep Drawn and Complex utilizing upto 1000 tons.- Precision Components Machined & Heat Treated

The company is having global presence through:

  • Setco Automotive Ltd, Mumbai, India
  • Setco Automotive Ltd, Kalol - Facility 1 Gujarat, India
  • Setco Automotive Ltd, Sitarganj, Uttarakhand - Facility 2, India 
  • Setco Automotive (UK) Ltd Haslingden, Rossendale, Lancashire BB4 4HU 
  • Setco Automotive N.A. Inc.Paris,
  • FTE Setco Automotive Limited.Kalol

Milestones:

  • 1965-66 - Western Engineering Works commenced small machining business in Mumbai.
  • 1967-68 - Started supplying turned components to Light Motor Vehicle industry.
  • 1982-83 - Commenced foundation plans for SAPL & GSCL in Kalol.
  • 1984-85 - Mumbai facility was converted into office area.
  • 1984-85 - Commenced production at Kalol facilities.
  • 1992-93 - Started business for supply of clutches for Light Commercial Vehicles to M&M, Telco etc.
  • 1996-97 - Started supply of components to UK & US to other clutch manufacturers.
  • 1999-00 - Got into technical collaboration with Lipe Clutch Division of UK.
  • 2000-01 - Rs. 110 million in sales
  • 2001-02 - Pioneered conversion of clutches from organic friction linings to ceramic friction linings in India with Tata Motors.Rs. 240 million in sales.
  • 2002-03 - Rs. 450 million in sales, commercial supplies to Eicher Motors.
  • 2003-04 - Became largest manufacturer of clutches for medium and heavy commercial vehicles in India.Rs.553 million in sales. Developed the All India Service Network.Became largest manufacturer of HMCV
  • 2004-05 - Rs. 1125.4 Million in sales. Commercial supplies to Ashok Leyland.Renamed itself as Setco Automotive Limited in Nov ’05
  • 2005-06 - New Vernon Equity Pvt. Ltd is issued 14.17% fresh equity.Setco acquires Lipe Clutch Division (UK) from Dana Corporation ( USA).Setco establishes a wholly owned subsidiary Setco Automotive NA Inc. (SANAI) in Paris, TN.
  • 2006-07 - Setco declares maiden interim Dividend of 10%.Setco acquired US facility from Haldex AB Sweden for $ 4.9 million through its subsidiary SANAI.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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