Setco Auto jumps 4%

about 3 months ago
No Image

Setco Automotive hit an intraday high today at Rs 33.70, up 4%. It has outperformed the auto parts and equipment sector by 3.21%. Its 52-week high stands at Rs.63.10.

The stock price has spurted up on news that it has scheduled a Board Meeting on the 10th of April to consider the offer by Lingotes Especiales S.A. for sale of its entire stake in its subsidiary Lava Cast Pvt. Ltd. This does come as a surprise because in the beginning of this month of April also, the company’s Chairman, Harish Seth had said that he was considering investing Rs.120 crore in LavaCast.

Setco Automotive, almost 35years old company, manufactures clutches for the medium and heavy commercial vehicle industry. Almost 9 out of 10 trucks manufactured in India are fitted with clutches manufactured by Setco.  The company has gone into manufacture of clutches for the tractor industry.

Setco Auto’s standalone term loan would be around Rs30 crores while the working capital loan stands around Rs150-175 crores. Its debt-equity ratio stands around 0.8-0.9% and its loans will be repaid  in next two-years.

Popular Comments

No comment posted for this article.