Stock Performance and Market Context
The stock has been on a losing streak for the past four consecutive days, resulting in a cumulative return decline of -17.71% during this period. Today's fall of -4.99% further accentuates the negative momentum, with the stock underperforming its sector by approximately 7%. This decline comes despite the broader market showing some resilience; the Sensex opened higher at 82,459.66 points, gaining 550.03 points (0.67%) before trading slightly lower at 82,263.77 points (0.43%). The Sensex remains 4.74% below its 52-week high of 86,159.02, while mid-cap stocks are leading gains with the BSE Mid Cap index up by 1.04% today.
Setco Automotive's share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This technical positioning reflects the stock's ongoing weakness relative to both its historical price levels and broader market indices.
Financial and Fundamental Overview
Over the past year, Setco Automotive has delivered a negative return of -33.82%, starkly contrasting with the Sensex's positive 7.67% performance over the same period. The stock's 52-week high was Rs.21.66, highlighting the extent of the recent decline.
The company’s fundamentals have been under pressure, with a Mojo Score of 12.0 and a Mojo Grade recently downgraded from Sell to Strong Sell as of 09 Dec 2025. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation compared to peers.
Setco Automotive's long-term financial health is challenged by a negative book value, which points to weak net asset backing. The company has reported losses and a negative net worth, raising concerns about its ability to sustain operations without either raising fresh capital or returning to profitability. Over the last five years, net sales have grown at an annual rate of 17.64%, but operating profit has remained flat, showing no growth. The average debt-to-equity ratio is reported at 0 times, but the half-yearly debt-to-equity ratio peaked at -1.51 times, indicating financial strain.
Quarterly results reveal a PBT less other income of Rs. -43.54 crores, representing a decline of -7.14%. Profitability has deteriorated, with profits falling by -5.3% over the past year. The company currently offers no dividend yield, reflecting the absence of distributable profits.
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Promoter Shareholding and Risk Factors
A notable risk factor is the high percentage of promoter shares pledged, which stands at 94.59%. This elevated level of pledged shares can exert additional downward pressure on the stock price, especially in volatile or declining markets. The company's negative book value and losses further compound the risk profile, making the stock comparatively risky relative to its historical valuations.
Long-Term and Recent Performance Trends
Setco Automotive has underperformed not only in the last year but also over longer time horizons. The stock has lagged behind the BSE500 index over the last three years, one year, and three months. This consistent underperformance reflects challenges in both the company’s business environment and financial metrics.
The Sensex itself has been on a three-week consecutive decline, losing -4.08% in that span, though it remains above its 200-day moving average. Setco Automotive’s relative weakness is underscored by its failure to keep pace with broader market indices and sectoral peers.
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Summary of Key Metrics
To summarise, Setco Automotive Ltd’s stock has reached a fresh 52-week low of Rs.11.8, reflecting a sustained decline over recent sessions and a broader one-year negative return of -33.82%. The company’s financial indicators reveal a challenging environment, with negative net worth, losses, and a high proportion of pledged promoter shares. The stock trades below all major moving averages and has underperformed both its sector and the broader market indices over multiple time frames.
While the Sensex and mid-cap indices show some positive movement, Setco Automotive’s share price continues to reflect the pressures on its business and financial structure. The downgrade to a Strong Sell grade by MarketsMOJO on 09 Dec 2025 further highlights the concerns surrounding the company’s outlook and valuation.
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