Check Before You Invest : Swaraj Engines Ltd

Q: Which industry/sub-sector does Swaraj Engines Ltd belong to?

Swaraj Engines Ltd belongs to the Automobiles sector, operating specifically within the Diesel Engines segment.

Q: Is Swaraj Engines Ltd a good quality company?

Swaraj Engines Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Swaraj Engines Ltd undervalued or overvalued?

Swaraj Engines Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 24.76, Historic Median: 19.67. Price to Book, Current: 9.94, Historic Median: 7.98. Price to Sales, Current: 2.42, Historic Median: 1.88. EV to EBITDA, Current: 16.35, Historic Median: 12.42

Q: Is Swaraj Engines Ltd a good buy now?

Swaraj Engines Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Swaraj Engines Ltd?

Swaraj Engines Ltd revenue growth is 18.5% for FY-2025, which is above its 5-year CAGR of 16.81%, indicating faster growth.

Q: Gross Profit margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.5% for FY-2025, which is in line with its 5-year median of 14.5%, indicating stable margins.

Q: Operating Profit Margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.52% for FY-2025, which is in line with its 5-year median of 13.52% indicating stable margins.

Q: Net Profit Margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Net Profit Margin is 9.87% for FY-2025, is in line with its 5-year median of 9.62%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.5, Historic Median: 14.5. Operating Profit Margin (%), Current: 13.52, Historic Median: 13.52. Net Profit Margin (%), Current: 9.87, Historic Median: 9.62

Q: Return on Asset of Swaraj Engines Ltd?

Swaraj Engines Ltd Return on Asset is 27.14%, which is above its 5-year historical median of 25.32%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Swaraj Engines Ltd?

Swaraj Engines Ltd Return on capital employed is 56.71% for FY-2025, which is above its 5-year historical median of 52.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Swaraj Engines Ltd

Snapshot

Q.1 Which industry/sub-sector does Swaraj Engines Ltd belong to?

Swaraj Engines Ltd belongs to the Automobiles sector, operating specifically within the Diesel Engines segment.

Q.2 Is Swaraj Engines Ltd a good quality company?

Swaraj Engines Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Swaraj Engines Ltd undervalued or overvalued?

Swaraj Engines Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	24.76	19.67
Price to Book	9.94	7.98
Price to Sales	2.42	1.88
EV to EBITDA	16.35	12.42

Q.4 Is Swaraj Engines Ltd a good buy now?

Swaraj Engines Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Swaraj Engines Ltd?

Swaraj Engines Ltd revenue growth is 18.5% for FY-2025, which is above its 5-year CAGR of 16.81%, indicating faster growth.

Q.2 Gross Profit margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.5% for FY-2025, which is in line with its 5-year median of 14.5%, indicating stable margins.

Q.3 Operating Profit Margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.52% for FY-2025, which is in line with its 5-year median of 13.52% indicating stable margins.

Q.4 Net Profit Margin of Swaraj Engines Ltd?

Swaraj Engines Ltd Net Profit Margin is 9.87% for FY-2025, is in line with its 5-year median of 9.62%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	14.5	14.5
Operating Profit Margin (%)	13.52	13.52
Net Profit Margin (%)	9.87	9.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Swaraj Engines Ltd?

Swaraj Engines Ltd Return on Asset is 27.14%, which is above its 5-year historical median of 25.32%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Swaraj Engines Ltd?

Swaraj Engines Ltd Return on capital employed is 56.71% for FY-2025, which is above its 5-year historical median of 52.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Swaraj Engines Ltd?

Swaraj Engines Ltd Return on equity is 42.17% for FY-2025, which is above its 5-year historical median of 38.81%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Swaraj Engines Ltd?

Swaraj Engines Ltd Cash conversion cycle is -0 days, below its 5-year historical median of 0 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.75	2.61
ROE (%)	42.17	38.81
ROCE (%)	56.71	52.12
Cash Conversion Cycle	-	-

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Swaraj Engines Ltd?

Swaraj Engines Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.02, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Swaraj Engines Ltd?

Swaraj Engines Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Swaraj Engines Ltd?

Q.1 Promoter shareholding and pledge status of Swaraj Engines Ltd?

Promoters hold 52.11% of the Swaraj Engines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Swaraj Engines Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Swaraj Engines Ltd vs industry peers?

Swaraj Engines Ltd revenue CAGR is 16.81%, compared to the industry median CAGR of 12.83%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	18.5	12.8
Gross Profit Growth (%)	20.3	5.8
Operating Profit Growth (%)	20.9	7.3
Net Profit Growth (%)	20.3	18.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.75	1.9
ROE (%)	42.17	18.22
ROCE (%)	56.71	25.63
Cash Conversion Cycle (days)	-0.01	1

Valuation & price assessment

Q.1 Stock return of Swaraj Engines Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	13.6%	20.9%	30.7%	2.1%

Q.2 Valuation ratios of Swaraj Engines Ltd vs historical?

The current P/E ratio of 24.76 is higher than its historical median of 19.67, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	24.76	19.67	40.84
Price to Book	9.94	7.98	7.98
Price to Sales	2.42	1.88	1.88
EV to EBITDA	16.35	12.42	19.26

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Check Before You Invest : Swaraj Engines Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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