Setco Automotive Faces Financial Challenges Amidst Mixed Market Performance Trends

Setco Automotive, a microcap player in the auto components and equipment industry, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending June 2025. The company reported a notable decline in its financial metrics, with a significant drop in its score over the past three months.
Despite achieving a high return on capital employed (ROCE) of 21.04%, which indicates effective utilization of capital, Setco Automotive is grappling with several challenges. The debt-equity ratio stands at -1.61 times, suggesting a concerning level of debt relative to equity. Additionally, the operating profit to interest ratio is at a low of 0.37 times, indicating difficulties in covering interest expenses. The profit after tax (PAT) has also fallen to Rs -33.80 crore, a decline of 16.8%, while the earnings per share (EPS) is reported at Rs -2.61.

In terms of market performance, Setco Automotive has shown mixed results compared to the Sensex. Over the past year, the stock has returned 13.67%, outperforming the Sensex's 0.74%. However, year-to-date returns are down by 14.03%, contrasting with the Sensex's positive growth of 2.68%. The company's performance over longer periods, such as three and five years, shows a more favorable trend, although it has struggled significantly over the last decade.