Bangalore: KRChoksey is upbeat on Setco Automotive and has recommended buy rating on the stock with a target of 190. At the Current Market Price of the company is 163. Setco Automotive is a premier manufacturer of clutch products for the Automotive and hydraulic products for Construction Equipment Industry. In addition Setco also manufactures precision engineering components like complex and deep drawn pressings and forgings and castings that are machined and heat treated. Their head quarters are in Mumbai, India and have 4 manufacturing facilities; 2 in India and 1 each in the UK and USA. Setco UK is also the R&D hub for Setco's clutch products and the technology provider to the group globally. Setco USA is the R&D hub for the hydraulics products. Setco Automotive showed a stellar performance for quarter as well as FY11 with a consolidated turnover of 352.91 Crore in FY11, a growth of 36 percent Y-o-Y. While the top-line grew by 61 percent Y-o-Y and 39 percent M-o-M to 107.7 crore in Q4FY11. This could be due to the change in the emission norms that came into effect from 1st October 2010. The Auto Industry has progressed by 25 percent in FY10 and 27 percent in FY11. On the whole 17.3 million vehicles were sold in India in FY11 over 13.6 million vehicles in FY10. This indicates the strong drive for vehicles in India. Going forward this demand is expected to continue (but the growth rate will slow down due to a higher base) thus enhancing higher demand for auto components. Setco Automotive has major OEM's in its long list of clients which includes Tata Motors, Ashok Leyland, Asia Motor Works, Eicher, Komatsu, Manfor the Prima range of M&HCV's of Tata Motors Setco is the only supplier of clutches. The company is also working with Daimler for manufacturing and selling clutches for Daimler's Indian operations. Looking at the business environment, the future looks positive for the company.