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Swaraj Engines Ltd. Stock Analysis

Small Cap
Evaluated by 1864 users | BSE: 500407 | NSE: SWARAJENG |
Diesel Engines
Swaraj Engines (SEL) was started in 1986 in technical and financial collaboration with Kirloskar Oil Engines (KOEL) for manufacture of Diesel Engines.SEL is a joint venture between erstwhile Punjab Tractors (PTL), which has since been merged with Mahindra & Mahindra (M&M) and Kirloskar...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Swaraj Engines Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 31.93%30.85%27.1%32.88%24.48%21.57%25.15%29.94%33.84%28.22%
Value Creation Index 1.111.040.791.170.620.430.660.981.240.87
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 361449479608540526666771872773
Y-o-Y Gr. Rt.-24.3%6.8%27%-11.3%-2.6%26.7%15.8%13%-11.3%
Adjusted EPS (Rs.) 35.324241.3853.441.5741.2755.3562.6165.0355.1
Y-o-Y Gr. Rt.-18.9%-1.5%29.1%-22.2%-0.7%34.1%13.1%3.9%-15.3%
Book Value per Share (Rs.) 122.56149.98155.98168.98170.75212.04227.9187.99195.71193.88
Adjusted Net Profit 43.952.251.466.351.651.368.775.978.966.8
Net Op. Cash Flow (Rs. Cr.) 29.449.947.567.155.66382.389.368.899.6
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Swaraj Engines Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.8%7.5%5.1%-11.3%
Adjusted EPS 5.1%5.8%-0.2%-15.3%
Book Value per Share 5.22.6-5.3-0.9
Share Price 13.4% 10.5% -10.3% 23.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 31.9130.8227.0532.8724.4721.5625.1429.6733.8228.21
Operating Profit Margin (%) 16.815.4714.9214.913.8414.0315.5915.7715.112.98
Net Profit Margin (%) 12.1511.6310.7310.99.579.7510.329.859.058.64
Debt to Equity 0000000000
Working Capital Days 38434236395373715561
Cash Conversion Cycle -5-5-7-8-13-18-22-27-25-30
Entity Percentage Holding
Promoters 52.18%
Institutions 11.74%
Non-Institutions 36.08%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Swaraj Engines and arrived at the following conclusion:

Past 10 year's financial track record indicates that Swaraj Engines is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Swaraj Engines's performance infers:

Swaraj Engines earnings have grown by 5.8%, whereas share price has appreciated 10.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Swaraj Engines share prices over the last 10 years. Here is what we found out:

Swaraj Engines share price has appreciated 13% annually over the past ten years.

Swaraj Engines (SEL) was started in 1986 in technical and financial collaboration with Kirloskar Oil Engines (KOEL) for manufacture of Diesel Engines.

SEL is a joint venture between erstwhile Punjab Tractors (PTL), which has since been merged with Mahindra & Mahindra (M&M) and Kirloskar Oil Engines. (KOEL). Originally set up to manufacture engines for PTL, in recent years SEL has also been a supplier of hi-tech engine components to Swaraj Mazda (SML).

Since start of commercial

Swaraj Engines (SEL) was started in 1986 in technical and financial collaboration with Kirloskar Oil Engines (KOEL) for manufacture of Diesel Engines.

SEL is a joint venture between erstwhile Punjab Tractors (PTL), which has since been merged with Mahindra & Mahindra (M&M) and Kirloskar Oil Engines. (KOEL). Originally set up to manufacture engines for PTL, in recent years SEL has also been a supplier of hi-tech engine components to Swaraj Mazda (SML).

Since start of commercial operations in 1989-90, SEL has supplied around 3,18,000 engines for fitment into “Swaraj” tractors. SEL’s engine business currently constitutes some 93% of the company’s product revenue. The balance 7% represents value of hitech engine components being supplied to SML for assembly of commercial vehicle engines.

SEL’s financial performance has been exceptional right from the beginning. Its operations have been characterised by a lean organisation structure, continuous improvement in process efficiencies and optimised resource utilisation.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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