Auto Ancillary stock one of India’s largest manufacturers of MHCV clutches engaged in manufacturing Clutch products, systems, and Hydraulics hit a 10 percent upper circuit in the day’s trade following expansion and growth in revenue.
Price Action
With a market capitalization of Rs. 183 Crores, the shares of Setco Automotive Limited hit a 10 percent upper circuit in the day’s trade at Rs.13.65 per equity share, from its previous day’s close price of Rs. 12.41.
What Happened
Setco Automotive Limited one of India’s largest manufacturers of MHCV clutches and a premium supplier of truck products, has announced the successful export shipment of its flywheels and covers to the US market manufactured by Lava Cast.
The shipment includes flywheels tailored for leading auto and auto ancillary players in the USA and covers designed for aftermarket distributors and remanufacturers.
This move was followed by its plans to expand its global footprint deliver high-quality products to a diverse customer base, and capitalize on the growing demand for high-quality automotive components in international markets.
Management Comment:
Mr. Harish Sheth, Chairman & MD, Setco Automotive Ltd. said, “This recent export shipment is a testament to our strategic initiatives and relentless efforts over the past few years.
The competitive edge of our Lava Cast products, coupled with the higher margins offered by export markets, positions us strongly for sustained growth. We firmly believe the worst is behind us, and now is the time to reap the rewards of our hard work.
As we expand our presence in both domestic and international markets, we remain committed to delivering superior quality and innovative solutions to our customers worldwide.”
About the Company
Setco Automotive Limited is engaged in the business of manufacturing Clutch products and systems and Hydraulics and it is one of India’s largest manufacturers of MHCV clutches and a premium supplier of truck products.
Financials & Ratios
Its revenue from operations grew by 13 percent from Rs. 146.44 Crores in Q2FY24 to Rs. 165.93 Crores in Q2FY25, accompanied by losses of Rs. 33.97 Crores to Rs. 28.87 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 16.7 percent, and a return on capital employed (ROCE) of 13.46 percent.
Written by: Bharath K.S
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