Setco Automotive Ltd

Setco Automotive operates with a capital structure that includes a significant amount of long-term debt, with total liabilities exceeding total assets, resulting in a negative equity position of INR -5.77 billion [doc:SETC.NS-FinancialSnapshot]. The company's liquidity position is characterized by a current ratio of 1.41, indicating a moderate ability to meet short-term obligations [doc:SETC.NS-ValuationSnapshot]. However, the company's free cash flow is negative at INR -106.5 million, which may limit its ability to fund operations without external financing [doc:SETC.NS-FinancialSnapshot]. Profitability metrics for Setco Automotive show a return on equity of 0.1822, which is positive but must be interpreted with caution given the negative equity position [doc:SETC.NS-ValuationSnapshot]. The company's return on assets is negative at -0.1828, suggesting that it is not generating sufficient returns to cover the cost of its assets [doc:SETC.NS-ValuationSnapshot]. The operating margin, calculated as operating income of INR 765.25 million on revenue of INR 7.19 billion, is 10.63%, which is below the industry median for the auto parts sector [doc:SETC.NS-FinancialSnapshot]. Setco Automotive's revenue is concentrated in a single segment, the Auto Components segment, which accounts for 100% of its total revenue [doc:SETC.NS-Description]. The company's geographic exposure is primarily in India, with additional markets in North America and other regions. The company's product portfolio includes clutch products and systems, as well as hydraulics, with a focus on BS VI medium and heavy commercial vehicle clutches, farm tractor clutches, and light commercial vehicle clutches [doc:SETC.NS-Description]. The company's growth trajectory is uncertain, with a net loss of INR 1.05 billion in the latest financial period [doc:SETC.NS-FinancialSnapshot]. The company's revenue of INR 7.19 billion is a key metric to monitor, as it is the primary driver of its financial performance. The company's capital expenditure of INR -122.76 million indicates a reduction in investment in new assets, which may affect its long-term growth potential [doc:SETC.NS-FinancialSnapshot]. Risk factors for Setco Automotive include a high debt-to-equity ratio of -1.93, which indicates a significant reliance on debt financing [doc:SETC.NS-ValuationSnapshot]. The company's liquidity risk is rated as medium, and its dilution risk is rated as low [doc:SETC.NS-RiskAssessment]. The company's negative net cash position after subtracting total debt is a key flag that may impact its financial stability [doc:SETC.NS-RiskAssessment]. Recent events for Setco Automotive include the latest actual EPS of -INR 0.07 and actual revenue of INR 5.91 billion, as reported by analysts [doc:SETC.NS-IRObservations]. These figures indicate a challenging financial performance, which may affect investor sentiment and the company's ability to attract new capital [doc:SETC.NS-IRObservations].