Penny stock hits 5% upper circuit after expanding into suspension components segment

The shares of the Penny stock company, specializing in the design, manufacture, and supply of clutch systems and other precision components for the automotive industry, are in focus upon its strategic entry into the suspension components segment with the launch of Load Cushion and Torque Rod Bush products.

With a market capitalization of Rs. 233.96 crores on Tuesday, the shares of Setco Automotive Ltd (NSE:SETC) hit a 5 percent upper circuit, making a high of Rs. 17.65 per share compared to its previous closing price of Rs. 16.81 per share.

Setco Automotive Ltd, engaged in the design, manufacture, and supply of clutch systems and other precision components for the automotive industry, has expanded its product portfolio by entering the suspension solutions segment.

On June 23, 2025, the company announced the launch of two new suspension components, the Load Cushion and Torque Rod Bush, targeted at enhancing ride comfort, vehicle stability, and shock absorption for trucks, buses, trailers, and tippers. These products are engineered using high-grade rubber and robust rubber-to-metal bonding, ensuring durability and reliability for both original equipment manufacturers (OEMs) and the aftermarket.

The Load Cushion is engineered to absorb vertical loads and road shocks during heavy-duty operations, ensuring ride comfort and structural balance in vehicles with bogie suspensions, thanks to its premium rubber elasticity and robust construction. Similarly, the Torque Rod Bush, fitted at both ends of the torque rod, helps isolate vibrations and shocks, supports axle movement, and reduces noise and harshness, thereby enhancing driveline protection and overall vehicle performance.

With these launches, Setco aims to broaden its presence in the commercial vehicle market, offering a wider range of high-performance components beyond its established clutch and engine cooling products.

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Management Commentary

Mr. Harish Sheth, Chairman & MD, Setco Automotive Ltd, stated: Following our successful entry into the engine cooling segment with the Automotive Water Pump, we are excited to strengthen our MHCV portfolio with a suspension products range. These new products reflect our continued focus on innovation, quality, and addressing evolving customer needs. They deliver superior ride comfort and vehicle reliability, core attributes our customers have come to expect from Setco.

Financials & Others

The company’s revenue rose by 22.7 percent from Rs. 174.05 crore to Rs. 213.56 crore in Q4FY24-25. Meanwhile, the Net loss declined from Rs. 23.5 crore to Rs. 18.28 crore during the same period.

Setco Automotive Ltd, established in 1982, is a leading manufacturer of medium and heavy commercial vehicle (M&HCV) clutches and a premium supplier of truck components in India.

The company offers a diversified product portfolio that includes brake linings, clutches, flywheels, lubricants, clutch release bearing assemblies, center support bearings, coolants, and universal joint crosses, and operates through its subsidiary, Lavacast Pvt Ltd, for advanced machined castings.

With five manufacturing units and over 100 products, Setco serves global markets such as the US, UK, SAARC, and the Middle East. Its advanced R&D facilities in India and the UK support product innovation and development, enabling the company to meet diverse customer needs and maintain its reputation for engineering excellence and reliability.

Written by Sridhar J

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