Recent Price Movement and Market Context
The stock has been on a downward trajectory for the past three consecutive trading sessions, registering a cumulative loss of 11.92% over this period. Today's decline of 4.21% further accentuates this trend, with Setco Automotive underperforming its sector by 3.27%. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
In comparison, the Sensex opened lower by 385.82 points and is trading at 81,678.26, down 0.61%. The benchmark index itself has been on a three-week losing streak, shedding 4.76% in that timeframe. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience in the broader market despite recent weakness.
Long-Term Performance and Valuation Concerns
Over the last year, Setco Automotive has delivered a negative return of 31.17%, starkly contrasting with the Sensex’s positive 7.61% gain. The stock’s 52-week high was Rs.21.66, highlighting the extent of the decline from its peak. This underperformance extends beyond the short term, with the company lagging the BSE500 index over the past three years, one year, and three months.
Valuation metrics raise further concerns. The company currently holds a negative book value, reflecting weak long-term fundamental strength. Its average debt-to-equity ratio stands at zero, but the half-yearly figure peaked at -1.51 times, indicating financial strain. The company’s net sales have grown at an annual rate of 17.64% over the past five years, yet operating profit has remained flat, showing no growth in profitability.
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Financial Results and Profitability Trends
The company reported flat results in the September 2025 quarter, with profit before tax excluding other income (PBT less OI) falling to a loss of Rs.43.54 crores, a decline of 7.14% compared to previous periods. This negative profitability trend has contributed to the company’s negative net worth, raising questions about its ability to sustain operations without fresh capital infusion or a return to profitability.
Despite the challenging financials, the stock currently offers a dividend yield of zero, reflecting the absence of dividend payouts amid losses. The high level of promoter share pledging, at 94.59%, adds to the stock’s risk profile, as pledged shares can exert additional downward pressure on prices during market downturns.
Technical and Market Sentiment Indicators
Technically, Setco Automotive’s trading below all major moving averages signals a bearish market sentiment. The stock’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 9 December 2025. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation compared to peers. These metrics collectively reflect the stock’s current weak positioning within the Auto Components & Equipments sector.
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Sectoral and Broader Market Comparison
Within the Auto Components & Equipments sector, Setco Automotive’s performance has been notably weaker than peers. The sector itself has experienced volatility, but Setco’s underperformance relative to sector averages and the Sensex highlights company-specific challenges. The stock’s current price level of Rs.12.42 is significantly below its 52-week high of Rs.21.66, underscoring the scale of the decline.
Market participants have observed that the company’s financial metrics, including negative book value and losses, have contributed to the cautious stance. The high promoter share pledge ratio further compounds concerns, as it may lead to forced selling in adverse market conditions.
Summary of Key Metrics
To summarise, Setco Automotive Ltd’s key financial and market indicators as of 21 January 2026 are:
- New 52-week low price: Rs.12.42
- One-year stock return: -31.17%
- Sensex one-year return: +7.61%
- Mojo Score: 12.0 (Strong Sell)
- Debt-to-Equity ratio (half-yearly): -1.51 times
- Profit before tax less other income (quarterly): Rs.-43.54 crores
- Promoter shares pledged: 94.59%
- Dividend yield: 0%
These figures reflect the stock’s current challenges and the broader market context in which it is trading.
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