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Check Before You Invest : Swaraj Engines Ltd

BSE: 500407 NSE: SWARAJENG ISIN: INE277A01016
  |   Sector:  Automobiles   |   Industry:  Diesel Engines

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 10 year financial track record.
Q.3 Is Swaraj Engines Ltd undervalued or overvalued?
Swaraj Engines Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
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

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 16.8% , 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 above with its 5 year median of 9.62%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 14.5 14.5
Operating Profit Margin 13.52 13.52
Net Profit Margin 9.87 9.62
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 Equity (ROE) of Swaraj Engines Ltd?
Swaraj Engines Ltd Return on equity is 42.17% for FY-2025 , which is above its historical median of 38.81%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Swaraj Engines Ltd?
Swaraj Engines Ltd Cash conversion cycle is -0 days, below its historical median of 0 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.75 2.61
ROE 42.17 38.81
ROCE 56.71 52.12
Cash Conversion Cycle - -
Q.9 Debt to Equity ratio of Swaraj Engines Ltd?
Swaraj Engines Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to 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

Q.1 Promoter shareholding and pledge status of Swaraj Engines Ltd?
Promoters hold 52.12% of the Swaraj Engines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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 4.42% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,681.9 709.6
Gross Profit 243.9 73.7
Operating Profit 226 45
Net Profit 166 -9.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.75 0.59
ROE 42.17 -1.19
ROCE 56.71 -0.43
Cash Conversion Cycle (days) -0.01 -

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 14% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14% 24.4% 38.2% -1.6%
Q.3 Valuation ratios of Swaraj Engines Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 25.33 31.45 52.27
Price to Book 10.17 8.02 7.77
Price to Sales 2.48 2.85 1.86
EV to EBITDA 16.74 0.00 19.90

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