Setco automotive a bet on booming mcv/hcv mkt

pls give more information about setco

Disc:- invested

Hi Varadharajan,

Are you still tracking Setco Auto? The latest con-cal transcipt made fro some interesting reading. It seems like the US exports as well as Farm Equipment business is taking off nicely for the company.
An interesting point mentioned therein is also that they have not invested further in the TransStadia venture.

Lastly, dont know if it matters at all, but Bharat Jayantilal Patel has entered the counter in a big way recently and he seems to have a real knack for picking under-valued businesses.

Any views from your end?

Rgds
Ankit

No i sold out at a small profit given worsening corporate governance - they are allocating capital to literally zero ROE businesses in india and abroad. i have heard that the son udit sheth is a spendthrift and they have been losing good people to competition. Dont have any conviction on this at cmp.

Hi Varadarajan,

Could I request you to elaborate on what you mean by zero ROE businesses in
India and abroad? Are you only talking about the TransStadia venture or the
forge they setup or something else?

Regards
Ankit

Stock has moved smartly from near 52 week lows of 33 to 43 in a span of 3 weeks. Bharat Patel (aka Minal Patel) buying big chunks through bulk deals and company’s focus on tractor market and exports seems to indicate better times ahead.

Disc - Invested from lower levels and planning to add more.

https://m.bseindia.com/MAnnDet.aspx?newsid=36107D38-195F-4F73-8D0F-902CF415FB50&Form=STR

Setco came with decent numbers…

But foot notes needs to be decoded for other incom and other expenses.

Request if someone can throw lights on it n true take on operaton PnL.