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Setco Automotive
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Setco Automotive Ltd (Formerly known Gujarat Setco Clutch Ltd) established in 1982, produces clutch driven plate and clutch cover assemblies. The Company is engaged in manufacturing of Clutch products and systems and Hydraulics (Pressure Converters). The Company is having 4 manufacturing units in India, United Kingdom and United States of America.
The company has also appraised investors of the fact that operational constraints, difficulty in input inflow and power shortage together affected the continuity in the level of production during the first six months of 1995-96. However, the Board is confident that with the necessary corrective measures being taken, the performance in the remaining period would be at an accelerated rate.
During 1996-97, it has increased its Clutch Driven Plate's Capacity by 102500 Nos and Clutch Cover Assembly by 75000 Nos.
The company has become sick and the rehabilitation proposal submitted by the operating agency for approval to the Board of Industrial & Financial Reconstruction, in the year 1999-2000.
The indian auto market and especially the segment which the company caters has underwent a metamorphos change towards meeting global standards particularly in the area of euro norms,higher load carrying capacity for better economies. In order to match the pace of the market needs,the company has entered into a Technical Collaboration with Lipe Clutch Division of M/s Dana Corporation,one of the best clutch technology people known worldwide. The production under the collaboration arrangement having commenced in March 2001.
During the year 2000-01,the company has expanded the installed capacity of Clutch Driven Plate by 80000 nos taking the tally from 230000 to 310000.The company has also expanded the installed capacity of Clutch Cover Assembly by 45000 nos taking the tally from 125000 to 170000.
The name of Company changed from Gujarat Setco Clutch Limited to Setco Automotive Limited in Dec.'05. Thereafter, the Company had set up a wholly owned subsidiary in UK under the name and style of Setco Automotive (UK) Limited (SAUL) in November 2005. Through this subsidiary (SAUL), the Company acquired Lipe Clutch Division, UK, a subsidiary of Dana Corporation (USA) in December 2005. And said newly acquired business came in to effect from 1st January 2006. In April 2006, SAUL, the wholly owned subsidiary of Company formed its wholly owned subsidiary in USA, at Paris, in the State of Tennessee in the name of Setco Automotive (NA) Incorporated (SANAI). An EOU was formed at Kalol in Nov. 2006. The Company acquired its U.S. subsidiary SANAI a manufacturing facility from Haldex Corporation of USA at Paris, Tennessee, in December 2006. A wholly owned subsidiary company was formed in Mauritius with the name,' WEW Holding Limited' in Feb'.07. New Clutch Assembly Unit commenced commercial production in Sitarganj, Uttarakhand during April, 2008. In 2009, the Company set up a Press Shop.
In 2015, Lava Cast Private Limited, a joint venture between the Company and Lingotes Especiales S.A. became a subsidiary of the Company. The Company launched Angle Spring Design (ASD) Clutch for the American market in 2017. During 2016-17, the Company incorporated a wholly owned subsidiary company, “SETCO MEA DMCC” in Dubai, United Arab Emirates (UAE) on August 3, 2016. Setco Auto Systems Private Limited (SASPL) (formerly known as Transstadia Sport Sciences Private Limited) became wholly owned subsidiary of the Company w.e.f March 26, 2021. The Company launched BS VI fitting clutches in 2021. During 2021-22, the Clutch Manufacturing Business was acquired through Business Transfer Agreement effective from 7th September, 2021 from Holding Company i.e. Setco Automotive Ltd.
Setco Automotive share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Setco Automotive indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Setco Automotive is valued compared to its competitors.
Setco Automotive PE ratio helps investors understand what is the market value of each stock compared to Setco Automotive 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Setco Automotive evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Setco Automotive generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Setco Automotive in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Setco Automotive shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Setco Automotive compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Setco Automotive over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Setco Automotive helps investors get an insight into when they can enter or exit the stock. Key components of Setco Automotive Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Setco Automotive shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Setco Automotive ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Setco Automotive provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Setco Automotive highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Setco Automotive .
The balance sheet presents a snapshot of Setco Automotive ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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