Why is Setco Automotive falling/rising?

Jul 04 2025 08:40 PM IST
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As of 04-Jul, Setco Automotive Ltd's stock price is at 18.00, down 1.42% and has declined 8.02% over the last four days. Despite a strong one-year return of 20.24%, concerns over negative book value, high debt, and liquidity issues are negatively impacting investor sentiment.
As of 04-Jul, Setco Automotive Ltd's stock price is currently at 18.00, reflecting a decrease of 0.26, or 1.42%. The stock has been underperforming, having fallen consecutively for the last four days, resulting in an overall decline of 8.02% during this period. Additionally, the stock's performance today has underperformed its sector by 2.09%. Despite a strong one-year return of 20.24%, the company faces challenges such as a negative book value, high debt levels, and a weak long-term growth outlook, which contribute to investor concerns. The recent positive financial results, including a high return on capital employed and record net sales, are overshadowed by the company's negative net worth and reliance on pledged promoter shares.

In the broader market context, Setco Automotive's short-term performance has been notably weaker than the benchmark, with a one-week decline of 3.43% compared to the Sensex's drop of only 0.74%. While the stock has outperformed the market over the past year, the recent trends indicate a troubling divergence, particularly as the company struggles with liquidity issues and falling investor participation, evidenced by an 83.16% drop in delivery volume. This combination of factors suggests that investor sentiment is shifting negatively, leading to the current decline in the stock price.
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