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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Swaraj Engines Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:23 pm

Market Cap 3,545 Cr.
Current Price 2,920
High / Low3,470/2,126
Stock P/E24.0
Book Value 281
Dividend Yield3.25 %
ROCE51.6 %
ROE38.6 %
Face Value 10.0
PEG Ratio2.78

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Swaraj Engines Ltd

Competitors of Swaraj Engines Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Swaraj Engines Ltd 3,545 Cr. 2,9203,470/2,12624.0 2813.25 %51.6 %38.6 % 10.0
Kirloskar Oil Engines Ltd 15,370 Cr. 1,0591,450/53029.8 2010.57 %15.0 %17.7 % 2.00
Greaves Cotton Ltd 3,941 Cr. 169199/112 58.41.18 %3.72 %1.62 % 2.00
Cummins India Ltd 91,058 Cr. 3,2824,172/1,83648.2 2341.16 %35.2 %28.1 % 2.00
Industry Average28,478.50 Cr1,857.5034.00193.601.54%26.38%21.51%4.00

All Competitor Stocks of Swaraj Engines Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales315344238242398385279360400389280351418
Expenses267296208211344334246312345337247303360
Operating Profit47482931555133485552334858
OPM %15%14%12%13%14%13%12%13%14%13%12%14%14%
Other Income3222323453334
Interest0000000000000
Depreciation5544555555445
Profit before tax45452729534831475551324758
Tax %25%25%26%25%26%26%26%26%26%26%25%25%26%
Net Profit34342022403623354138243543
EPS in Rs27.7227.8216.6318.0032.5629.5419.1328.7833.6931.0119.8428.9635.56

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4796085405266667718727739871,1381,4221,4191,437
Expenses4085184654525626507406738519831,2351,2311,246
Operating Profit72917574105122132100136155186188191
OPM %15%15%14%14%16%16%15%13%14%14%13%13%13%
Other Income1516161617191513910121414
Interest0000010000000
Depreciation791314161720202018191717
Profit before tax8098787610512312793124147180185188
Tax %30%32%33%33%35%35%35%24%26%25%26%25%
Net Profit556752516980827193109134138140
EPS in Rs44.6153.9541.7441.3155.4366.0567.9558.5576.2490.14110.00113.50115.37
Dividend Payout %74%65%79%80%78%76%74%68%91%89%84%84%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)21.82%-22.39%-1.92%35.29%15.94%2.50%-13.41%30.99%17.20%22.94%2.99%
Change in YoY Net Profit Growth (%)0.00%-44.21%20.46%37.22%-19.35%-13.44%-15.91%44.40%-13.78%5.73%-19.95%

Swaraj Engines Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:10%
3 Years:13%
TTM:6%
Compounded Profit Growth
10 Years:8%
5 Years:11%
3 Years:14%
TTM:8%
Stock Price CAGR
10 Years:12%
5 Years:22%
3 Years:19%
1 Year:33%
Return on Equity
10 Years:33%
5 Years:37%
3 Years:39%
Last Year:39%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121212121212121212
Reserves181197200251271216226224268294330356330
Borrowings0000000000110
Other Liabilities1071241137389119128119178156193187245
Total Liabilities301334325337372348366355458461536557587
Fixed Assets818484101919211010392958876113
CWIP22501624122385
Investments747242114976841113436262014
Other Assets144176195224231173170136331329420423455
Total Assets301334325337372348366355458461536557587

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4767566382896910028100133142
Cash from Investing Activity +-28-16-11-14-32474-2756-48-38-30
Cash from Financing Activity +-19-48-51-49-49-136-73-73-49-84-97-112
Net Cash Flow03-6011-0-036-32-21

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow72.0091.0075.0074.00105.00122.00132.00100.00136.00155.00185.00187.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7555778242333331
Inventory Days393730261920262329252223
Days Payable444743505263586178535352
Cash Conversion Cycle2-5-9-19-25-35-24-36-7522
Working Capital Days-31-29-38345436213161712
ROCE %39%48%37%32%39%47%55%39%48%50%55%52%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.15%52.15%52.13%52.13%52.13%52.13%52.13%52.12%52.12%52.12%52.12%52.12%
FIIs1.47%1.85%1.84%1.90%1.91%1.73%1.75%2.50%2.60%2.71%2.55%2.86%
DIIs9.07%8.91%8.91%8.91%9.05%8.91%9.16%8.47%8.51%9.02%9.54%8.84%
Public37.31%37.09%37.11%37.06%36.89%37.22%36.96%36.90%36.76%36.16%35.79%36.18%
No. of Shareholders32,80730,71330,20229,27428,74128,35927,46927,48728,03026,97627,14629,241

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund828,4831.49200.72156,0752024-11-20430.82%
SBI Magnum Midcap Fund156,0750.2437.81156,0752024-11-200%
Parag Parikh Conservative Hybrid Fund39,7780.549.51156,0752024-11-20-74.51%
HDFC Hybrid Debt Fund - Regular Plan30,0000.247.17156,0752024-11-20-80.78%
Parag Parikh ELSS Tax Saver Fund21,6460.25.24156,0752024-11-20-86.13%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)113.50110.0290.1776.2758.57
Diluted EPS (Rs.)113.48109.9990.1376.2058.53
Cash EPS (Rs.)127.74125.27105.0592.5375.15
Book Value[Excl.RevalReserv]/Share (Rs.)303.41281.75251.71231.14194.44
Book Value[Incl.RevalReserv]/Share (Rs.)303.41281.75251.71231.14194.44
Dividend / Share (Rs.)95.0092.0080.0069.0040.00
Revenue From Operations / Share (Rs.)1168.361170.62937.21812.77637.39
PBDIT / Share (Rs.)166.72163.32135.90118.8493.32
PBIT / Share (Rs.)152.47148.05121.00102.5576.73
PBT / Share (Rs.)152.27147.99120.93102.5576.72
Net Profit / Share (Rs.)113.50110.0190.1576.2458.56
PBDIT Margin (%)14.2613.9514.5014.6214.64
PBIT Margin (%)13.0512.6412.9112.6112.03
PBT Margin (%)13.0312.6412.9012.6112.03
Net Profit Margin (%)9.719.399.619.389.18
Return on Networth / Equity (%)37.4039.0435.8132.9830.11
Return on Capital Employeed (%)49.1951.4147.1943.3938.02
Return On Assets (%)24.7624.9223.7220.1820.00
Asset Turnover Ratio (%)2.602.852.472.432.14
Current Ratio (X)2.342.092.192.102.20
Quick Ratio (X)1.941.711.771.741.87
Inventory Turnover Ratio (X)15.9417.2814.4015.6913.81
Dividend Payout Ratio (NP) (%)81.0572.7176.5252.4385.36
Dividend Payout Ratio (CP) (%)72.0163.8565.6643.2066.51
Earning Retention Ratio (%)18.9527.2923.4847.5714.64
Cash Earning Retention Ratio (%)27.9936.1534.3456.8033.49
Interest Coverage Ratio (X)819.592610.022160.2349742.767973.16
Interest Coverage Ratio (Post Tax) (X)558.941759.071433.9131912.935003.97
Enterprise Value (Cr.)2607.381757.821494.881475.351073.70
EV / Net Operating Revenue (X)1.841.241.311.501.39
EV / EBITDA (X)12.878.869.0610.239.48
MarketCap / Net Operating Revenue (X)1.961.311.391.611.41
Retention Ratios (%)18.9427.2823.4747.5614.63
Price / BV (X)7.555.465.195.684.63
Price / Net Operating Revenue (X)1.961.311.391.611.41
EarningsYield0.040.070.060.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Swaraj Engines Ltd as of November 22, 2024 is: 2,687.79

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Swaraj Engines Ltd is Overvalued by 7.95% compared to the current share price 2,920.00

Intrinsic Value of Swaraj Engines Ltd as of November 22, 2024 is: 2,919.96

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Swaraj Engines Ltd is Fairly valued by 0.00% compared to the current share price 2,920.00

Last 5 Year EPS CAGR: 8.64%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 45.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 4.92, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -12.42, which is a positive sign.
  4. The company has higher reserves (257.23 cr) compared to borrowings (0.15 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (478.92 cr) and profit (123.38 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Swaraj Engines Ltd:
      1. Net Profit Margin: 9.71%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 49.19% (Industry Average ROCE: 26.38%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 37.4% (Industry Average ROE: 21.51%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 558.94
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.94
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 24 (Industry average Stock P/E: 34)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Swaraj Engines Ltd. is a Public Limited Listed company incorporated on 24/09/1985 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L50210PB1985PLC006473 and registration number is 006473. Currently Company is involved in the business activities of Manufacture of motor vehicle engines. Company’s Total Operating Revenue is Rs. 1138.15 Cr. and Equity Capital is Rs. 12.14 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    EnginesPhase-IV, Mohali Punjab 160055selinvestor@swarajenterprise.com
    http://www.swarajenterprise.com
    Management
    NamePosition Held
    Mr. Rajesh JejurikarChairman
    Mr. Puneet RenjhenDirector
    Mr. Giju KurianWholeTime Director & CEO
    Mr. S NagarajanDirector
    Mr. Nikhilesh PanchalDirector
    Mr. Dileep C ChoksiDirector
    Ms. Smita MankadDirector
    Mr. Harish ChavanDirector

    FAQ

    What is the latest intrinsic value of Swaraj Engines Ltd?

    The latest intrinsic value of Swaraj Engines Ltd as on 21 November 2024 is ₹2687.79, which is 7.95% lower than the current market price of ₹2,920.00.

    What is the Market Cap of Swaraj Engines Ltd?

    The Market Cap of Swaraj Engines Ltd is 3,545 Cr..

    What is the current Stock Price of Swaraj Engines Ltd as on 21 November 2024?

    The current stock price of Swaraj Engines Ltd as on 21 November 2024 is ₹2,920.

    What is the High / Low of Swaraj Engines Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Swaraj Engines Ltd stocks is 3,470/2,126.

    What is the Stock P/E of Swaraj Engines Ltd?

    The Stock P/E of Swaraj Engines Ltd is 24.0.

    What is the Book Value of Swaraj Engines Ltd?

    The Book Value of Swaraj Engines Ltd is 281.

    What is the Dividend Yield of Swaraj Engines Ltd?

    The Dividend Yield of Swaraj Engines Ltd is 3.25 %.

    What is the ROCE of Swaraj Engines Ltd?

    The ROCE of Swaraj Engines Ltd is 51.6 %.

    What is the ROE of Swaraj Engines Ltd?

    The ROE of Swaraj Engines Ltd is 38.6 %.

    What is the Face Value of Swaraj Engines Ltd?

    The Face Value of Swaraj Engines Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Swaraj Engines Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE