Setco Automotive (SETCO)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Setco is an auto-component maker, a business I can understand, but understandable isn't enough. At ₹24.22, the market cap is ₹226 crore, yet reported P/E is zero: no earnings support. The latest quarter shows a net loss of ₹57 crore on ₹197 crore of sales, a nearly 29% loss margin. Paying 4.29 times book value of ₹5.64 for that stream is not value investing; Graham would demand a margin of safety, not a premium for losses. Profit growth is down 76.62%, the dividend is zero, and the Piotroski F-score is only 4/9, warning of weak financial health. The 21.06% ROCE looks encouraging, but with ROE of just 0.53%, something between operating earnings and net income—interest, taxes, or exceptional charges—is destroying shareholder returns. I cannot rely on a pre-leverage return when the bottom line is weak. Sales growth of 9.26% and ₹197 crore quarterly revenue show the business still has scale and operating leverage if margins recover. Promoter holding of 59.25% gives alignment. But the balance sheet risk is unclear because debt/equity is not available. In a loss-making turnaround, the price must offer protection. At 4.29 times book and no earnings, Setco does not. I would need to see cash flows, debt levels, and proof that the loss is temporary before committing money.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer