Setco Automotive Ltd Stock Analysis

BSE: 505075 | NSE: SETCO | Auto Ancillary | Small Cap

BSE Share Price Jul 06, 18:01
13.17 0.08 (0.61%)

DeciZen - Make an Informed Decision on Setco Automotive

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Setco Automotive Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Setco Automotive Ltd is a average quality company.

2. Is Setco Automotive Ltd undervalued or overvalued?

The key valuation ratios of Setco Automotive Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Setco Automotive Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Setco Automotive Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Setco Automotive:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Setco Automotive Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 25.4%13.6%8.6%10.6%12.2%9.1%9.9%12.1%5%-6.8%-
Value Creation Index 0.8-0.0-0.4-0.3-0.1-0.4-0.3-0.1-0.6NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 375359353485531537513613418314257
YoY Gr. Rt. %--4.1%-1.8%37.6%9.4%1.1%-4.3%19.5%-31.8%-24.9%-
Adj EPS 3.2211.72.41.622.6-0.2-5-13.2
YoY Gr. Rt. %--39.4%-47.7%69.6%36.4%-33.1%24.7%34%-107.6%NA-
BVPS (₹) 9.310.711.912.914.51718.419.617.39.412.1
Adj Net Profit 42.62613.623.231.621.126.335.3-2.7-66.8-177
Cash Flow from Ops. 36.31739.11066.550.362.776.858.126-
Debt/CF from Ops. 3.38.43.821.23.55.23.834.713-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -1.9%-10%-15.1%-24.9%
Adj EPS -205%-216.2%-236.3%NA
BVPS 0.2-8.2-20-45.5
Share Price -7.8% -20% -10.9% -43.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 40.317.67.612159.411.113.9-1.1-37.4-123.1
Op. Profit Mgn % 17.713.39.711.513.812.81114.99.72.9-8.2
Net Profit Mgn % 11.47.23.94.863.95.15.8-0.7-21.3-68.8
Debt to Equity 110.91.21.21.110.91.22.7-
Working Cap Days 1381772041661801891681572342730
Cash Conv. Cycle 63889167656548372640

Recent Performance Summary

No data to display

Return on Equity is Poor

Sales growth has been subdued in last 3 years -15.11%

Debt to equity has increased versus last 3 years average to 2.68

Sales growth is not so good in last 4 quarters at 5.99%

Latest Financials - Setco Automotive Ltd.

Standalone Consolidated
TTM EPS (₹) -13.2 -20.2
TTM Sales (₹ Cr.) 257 393
BVPS (₹.) 12.1 -19.1
Reserves (₹ Cr.) 135 -282
P/BV 1.08 -0.68
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 12.35 / 25.20
All Time Low / High (₹) 0.75 / 74.15
Market Cap (₹ Cr.) 175
Equity (₹ Cr.) 26.8
Face Value (₹) 2
Industry PE 33.6

Management X-Ray of Setco Automotive :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *92.1396.4396.4396.4396.4396.2686.1762.6297.2594.59
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About Setco Automotive Ltd

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.
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