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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Swaraj Engines Ltd

About the Company - Swaraj Engines Ltd

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.
EnginesPhase-IV, Industrial Area, Mohali Punjab
NamePosition Held
Mr. Rajesh JejurikarChairman
Mr. Puneet RenjhenDirector
Mr. Giju KurianWholeTime Director & CEO
Mr. Nagarajan SivaramakrishnanDirector
Mr. Nikhilesh Natwarlal PanchalDirector
Mr. Dileep C ChoksiDirector
Mrs. Neera SaggiDirector
Mr. Harish ChavanDirector

Swaraj Engines Ltd. Share Price Update

Share PriceValue
Previous Day₹2,383.65

Basic Stock Data of Swaraj Engines Ltd

Market Cap 2,872 Cr.
Current Price 2,364
High / Low2,643/1,396
Stock P/E20.9
Book Value 254
Dividend Yield3.90 %
ROCE55.2 %
ROE41.1 %
Face Value 10.0

Data Source:

Competitors of Swaraj Engines Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Swaraj Engines Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Operating Profit37464748293155513348555233
OPM %13%15%15%14%12%13%14%13%12%13%14%13%12%
Other Income2232223234533
Profit before tax34444545272953483147555132
Tax %26%25%25%25%26%25%26%26%26%26%26%26%25%
Net Profit25333434202240362335413824
EPS in Rs20.6226.8227.7227.8216.6318.0032.5629.5419.1328.7833.6931.0119.84

Swaraj Engines Ltd Quarterly Chart

Swaraj Engines Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit6872917574105122132100136155186188
OPM %15%15%15%14%14%16%16%15%13%14%14%13%13%
Other Income1315161616171915139101215
Profit before tax778098787610512312793124147180185
Tax %32%30%32%33%33%35%35%35%24%26%25%26%
Net Profit53556752516980827193109134138
EPS in Rs42.5344.6153.9541.7441.3155.4366.0567.9558.5576.2490.14110.00113.32
Dividend Payout %31%74%65%79%80%78%76%74%68%91%89%84%

Swaraj Engines Ltd Profit & Loss Yearly Chart

Swaraj Engines Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:13%
3 Years:23%
Compounded Profit Growth
10 Years:10%
5 Years:11%
3 Years:24%
Stock Price CAGR
10 Years:14%
5 Years:11%
3 Years:21%
1 Year:40%
Return on Equity
10 Years:32%
5 Years:36%
3 Years:38%
Last Year:41%

Swaraj Engines Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121212121212121212121212
Other Liabilities771071241137389119128119178156193207
Total Liabilities263301334325337372348366355458461536517
Fixed Assets42818484101919211010392958882
Other Assets132144176195224231173170136331329420394
Total Assets263301334325337372348366355458461536517

Swaraj Engines Ltd Reserves and Borrowings Chart

Swaraj Engines Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 504767566382896910028100133
Cash from Investing Activity -42-28-16-11-14-32474-2756-48-38
Cash from Financing Activity -14-19-48-51-49-49-136-73-73-49-84-97
Net Cash Flow-603-6011-0-036-32-2

Swaraj Engines Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1075557782423333
Inventory Days363937302619202623292522
Days Payable474447435052635861785353
Cash Conversion Cycle-12-5-9-19-25-35-24-36-752
Working Capital Days-15-31-29-383454362131617
ROCE %45%39%48%37%32%39%47%55%39%48%50%55%

Swaraj Engines Ltd Financial Efficiency Indicators Chart

Swaraj Engines Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders24,25826,37132,80730,71330,20229,27428,74128,35927,46927,48728,03026,976

Swaraj Engines Ltd Shareholding Pattern Chart

No. of Swaraj Engines Ltd Shareholders

Swaraj Engines Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
DSP Small Cap Fund8284831.49200.72
SBI Magnum Midcap Fund1560750.2437.81
Parag Parikh Conservative Hybrid Fund397780.549.51
HDFC Hybrid Debt Fund - Regular Plan300000.247.17
Parag Parikh ELSS Tax Saver Fund216460.25.24

Swaraj Engines Ltd ROCE Trend

Swaraj Engines Ltd EPS Trend

Swaraj Engines Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Basic EPS (Rs.)110.0290.1776.2758.5767.96
Diluted EPS (Rs.)109.9990.1376.2058.5367.91
Cash EPS (Rs.)125.27105.0592.5375.1584.06
Book Value[Excl.RevalReserv]/Share (Rs.)281.75251.71231.14194.44196.21
Book Value[Incl.RevalReserv]/Share (Rs.)281.75251.71231.14194.44196.21
Dividend / Share (Rs.)92.0080.0069.0040.0050.00
Revenue From Operations / Share (Rs.)1170.62937.21812.77637.39718.73
PBDIT / Share (Rs.)163.32135.90118.8493.32121.22
PBIT / Share (Rs.)148.05121.00102.5576.73105.11
PBT / Share (Rs.)147.99120.93102.5576.72105.04
Net Profit / Share (Rs.)110.0190.1576.2458.5667.95
PBDIT Margin (%)13.9514.5014.6214.6416.86
PBIT Margin (%)12.6412.9112.6112.0314.62
PBT Margin (%)12.6412.9012.6112.0314.61
Net Profit Margin (%)9.399.619.389.189.45
Return on Networth / Equity (%)39.0435.8132.9830.1134.63
Return on Capital Employeed (%)51.4147.1943.3938.0251.17
Return On Assets (%)24.9223.7220.1820.0022.50
Asset Turnover Ratio (%)2.852.472.432.142.44
Current Ratio (X)
Quick Ratio (X)1.711.771.741.871.70
Inventory Turnover Ratio (X)17.2814.4015.6913.8116.76
Dividend Payout Ratio (NP) (%)72.7176.5252.4385.3673.56
Dividend Payout Ratio (CP) (%)63.8565.6643.2066.5159.46
Earning Retention Ratio (%)27.2923.4847.5714.6426.44
Cash Earning Retention Ratio (%)36.1534.3456.8033.4940.54
Interest Coverage Ratio (X)2610.022160.2349742.767973.161617.46
Interest Coverage Ratio (Post Tax) (X)1759.071433.9131912.935003.97907.72
Enterprise Value (Cr.)1757.821494.881475.351073.701687.23
EV / Net Operating Revenue (X)1.241.311.501.391.94
EV / EBITDA (X)8.869.0610.239.4811.48
MarketCap / Net Operating Revenue (X)1.311.391.611.411.96
Retention Ratios (%)27.2823.4747.5614.6326.43
Price / BV (X)5.465.195.684.637.17
Price / Net Operating Revenue (X)1.311.391.611.411.96

Swaraj Engines Ltd Profitability Ratios (%)

Swaraj Engines Ltd Liquidity Ratios

Swaraj Engines Ltd Liquidity Ratios (%)

Swaraj Engines Ltd Interest Coverage Ratios (X)

Swaraj Engines Ltd Valuation Ratios

Fair Value / Intrinsic Value of Swaraj Engines Ltd

Fair Value: ₹2266.93

The stock is overvalued by 4.11% compared to the current price ₹2364

*Investments are subject to market risks

Strength and Weakness of Swaraj Engines Ltd

  1. The stock has a high average ROCE of 44.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 2.67, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -12.67, which is a positive sign.
  4. The company has higher reserves (240.69 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (513.38 cr) and profit (114.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 126.52 and average Dividend Yield of 12.96%.

Should I Buy Swaraj Engines Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Swaraj Engines Ltd:
    1. Net Profit Margin: 9.39%
      • 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: 51.41% (Industry Average ROCE: 0%)
      • 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. Interest Coverage Ratio (Post Tax): 1759.07
      • 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.
    4. Quick Ratio: 1.71
      • 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.
    5. ✗ Stock P/E: 20.9 (Industry average Stock P/E: 0)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar

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 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