Stocks - Q : Quality | V : Valuation | PT : Price Trend
Funds - P : Performance | Q : Quality
Funds - P : Performance | Q : Quality
BSE: 500407 | NSE: SWARAJENG | Diesel Engines | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Swaraj Engines Ltd is a good quality company.
The key valuation ratios of Swaraj Engines Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Swaraj Engines Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation Index Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 36.9% | 32.1% | 38.6% | 48.3% | 54.7% | 39.3% | 48.2% | 50.1% | 55.5% | 52.1% | - |
| Value Creation Index ⓘ | 1.6 | 1.3 | 1.8 | 2.5 | 2.9 | 1.8 | 2.4 | 2.6 | 3.0 | 2.7 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 540 | 526 | 666 | 771 | 872 | 773 | 987 | 1,138 | 1,422 | 1,419 | 1,682 |
| Sales YoY Gr. | - | -2.6% | 26.7% | 15.8% | 13% | -11.3% | 27.6% | 15.4% | 24.9% | -0.2% | - |
| Adj EPS ⓘ | 41.6 | 41.3 | 55.4 | 66 | 67.8 | 58.6 | 75.8 | 89.3 | 109.7 | 112.9 | 136.6 |
| YoY Gr. | - | -0.7% | 34.1% | 19.2% | 2.8% | -13.7% | 29.5% | 17.7% | 22.8% | 3% | - |
| BVPS (₹) ⓘ | 170.8 | 212 | 227.9 | 188 | 195.7 | 193.9 | 230.7 | 251.6 | 281.6 | 303.3 | 307.7 |
| Adj Net Profit ⓘ | 51.6 | 51.3 | 68.7 | 80 | 82.3 | 71.1 | 92.1 | 108 | 133 | 137 | 166 |
| Cash Flow from Ops. ⓘ | 55.6 | 63 | 82.3 | 89.3 | 68.8 | 99.6 | 28 | 100 | 133 | 142 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 11.3% | 10.2% | 12.9% | -0.2% | ||||
| Adj EPS ⓘ | 11.7% | 10.7% | 14.2% | 3% | ||||
| BVPSⓘ | 6.6% | 9.2% | 9.6% | 7.7% | ||||
| Share Price | 17.3% | 34.2% | 42.5% | 70.7% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 24.5 | 21.6 | 25.1 | 31.3 | 35.3 | 30 | 35.7 | 37 | 41.1 | 38.6 | 44.7 |
| Op. Profit Mgn % ⓘ | 13.8 | 14 | 15.6 | 15.8 | 15.1 | 13 | 13.8 | 13.7 | 13.1 | 13.3 | 13.5 |
| Net Profit Mgn % ⓘ | 9.6 | 9.8 | 10.3 | 10.4 | 9.4 | 9.2 | 9.3 | 9.5 | 9.4 | 9.7 | 9.9 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 39 | 53 | 73 | 71 | 55 | 61 | 61 | 72 | 70 | 71 | 46 |
| Cash Conv. Cycle ⓘ | -13 | -18 | -22 | -27 | -25 | -30 | -16 | 0 | 3 | 1 | 22 |
Return on Equity has increased versus last 3 years average to 44.70%
Sales growth is growing at healthy rate in last 3 years 12.89%
Net Profit is growing at healthy rate in last 3 years 14.18%
Sales growth is good in last 4 quarters at 19.23%
No data to display
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 136.6 | - |
| TTM Sales (₹ Cr.) | 1,682 | - |
| BVPS (₹.) ⓘ | 307.7 | - |
| Reserves (₹ Cr.) ⓘ | 362 | - |
| P/BV ⓘ | 13.62 | - |
| PE ⓘ | 30.67 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 2275.00 / 4478.60 |
| All Time Low / High (₹) | 25.00 / 4197.45 |
| Market Cap (₹ Cr.) | 5,091 |
| Equity (₹ Cr.) | 12.2 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 39.5 |
| Mar'24 | YoY Gr. Rt. % | Jun'24 | YoY Gr. Rt. % | Sep'24 | YoY Gr. Rt. % | Dec'24 | YoY Gr. Rt. % | |
|---|---|---|---|---|---|---|---|---|
| Sales (₹ Cr.)ⓘ | 31.3 | 5.9 | 26.1 | 5.8 | 27.2 | 14.6 | 26.2 | 2.5 |
| Adj EPS (₹) ⓘ | 2.4 | -6.7 | 2.6 | -9.4 | 2.9 | -8 | 2.8 | -22.7 |
| Op. Profit Mgn % ⓘ | 15.12 | 174 bps | 17.00 | -278 bps | 18.88 | 20 bps | 17.30 | -186 bps |
| Net Profit Mgn % ⓘ | 8.88 | -123 bps | 13.16 | -59 bps | 13.93 | -162 bps | 13.98 | -264 bps |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Particulars | Q2FY24 (Rs. Crs) | YoY Trend | Comments |
| Revenue | 389 | +1% | Q2 engine sales came in at 37,876 units, up by 2.9% |
| EBITDA | 52.1 | +3% | |
| EBITDA Margin | 13.39% | + 30 bps | |
| PAT | 37.7 | +5% |
Stable Results
|
Particulars |
Q1FY24 |
YoY Trend |
Comments |
|
Revenue |
400 |
Flat |
Revenues up by 11% QoQ |
|
EBITDA |
55.2 |
+1% |
|
|
EBITDA Margin |
13.8% |
Flat |
|
|
PAT |
41 |
+3% |
|
Stable results as expected.
Swaraj Engines is a joint holding of Kirloskar Industries (17.4% stake) and M&M (33.2% stake) with M&M the main promoter consequent to its acquisition of Punjab Tractors in 2007-08.
SWARAJ ENGINES serves the engine requirements of the Swaraj brand of tractors, owned by M&M. The company manufactures engines catering to tractors in the 20-50 hp segment and caters to ~85% of the total engine requirement at M&M’s Swaraj tractor division. SWARAJ ENGINES has a current installed capacity to manufacture 0.1 million units of engines. SWARAJ ENGINES also manufactures hi-tech engine components for commercial vehicles for SML Isuzu (erstwhile Swaraj Mazda). The contribution to the topline, however, remains limited (<3%).
Tractor is cyclical business though business cycle is not very long. Tractor sales depend on monsoon and harvest. Also, tractors are sold more around the season and subdued in rest of the year. Most of the tractors are financed and hence purchases do depend on interest rate cycle.
Due to various factors mentioned above, its better to evaluate this business on long term basis on normalized earnings. Based on our checks with the management, the small horsepower engines have higher growth than overall tractor industry. Assuming 8% as tractor growth over long term, Swaraj range of tractors is likely to grow at 9-11% CAGR over next 5 years.
Back on the envelope calculation suggests that currently the market is factoring 17% CAGR in earnings of the company over next 5 years. Given the company maintains the margins at 10% and passes on the cost fluctuations to M&M, the earnings are likely to move more or less in lines with volume growth. At 17% CAGR volumes growth assumption, we believe the company may disappoint in cyclical down year. For those who are holding the stock, can consider partially selling the stock at current prices and later buy back when stock trades at lower prices multiples in down cycle.
Reverse calculation:
| Company Name | CMP(₹) | |||||||
|---|---|---|---|---|---|---|---|---|
| Greaves Cotton | 194.6 | -1.3 (-0.7%) | Small Cap | 2,633 | 1.6 | -5.1 | 123.5 | 3.3 |
| Swaraj Engines | 4,137.2 | -53.9 (-1.3%) | Small Cap | 1,419 | 136.6 | 9.7 | 30.7 | 13.6 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 540 | 526 | 666 | 771 | 872 | 773 | 987 | 1,138 | 1,422 | 1,419 |
| Operating Expenses ⓘ | 465 | 452 | 562 | 650 | 740 | 673 | 851 | 983 | 1,236 | 1,232 |
| Manufacturing Costs | 19 | 18 | 22 | 25 | 27 | 24 | 25 | 28 | 32 | 34 |
| Material Costs | 409 | 396 | 496 | 574 | 657 | 592 | 766 | 890 | 1,134 | 1,121 |
| Employee Cost | 31 | 27 | 31 | 35 | 39 | 42 | 43 | 44 | 44 | 43 |
| Other Costs ⓘ | 6 | 11 | 13 | 15 | 17 | 14 | 17 | 21 | 27 | 34 |
| Operating Profit ⓘ | 75 | 74 | 104 | 122 | 132 | 100 | 136 | 155 | 186 | 187 |
| Operating Profit Margin (%) | 13.8% | 14.0% | 15.6% | 15.8% | 15.1% | 13.0% | 13.7% | 13.7% | 13.1% | 13.2% |
| Other Income ⓘ | 16 | 16 | 18 | 19 | 15 | 13 | 9 | 10 | 13 | 15 |
| Interest ⓘ | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation ⓘ | 13 | 14 | 16 | 17 | 20 | 20 | 20 | 18 | 19 | 17 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 78 | 76 | 105 | 123 | 127 | 93 | 124 | 147 | 180 | 185 |
| Tax ⓘ | 26 | 25 | 37 | 43 | 45 | 22 | 32 | 37 | 46 | 47 |
| Profit After Tax | 52 | 51 | 69 | 80 | 82 | 71 | 93 | 109 | 134 | 138 |
| PAT Margin (%) | 9.6% | 9.8% | 10.3% | 10.4% | 9.5% | 9.2% | 9.4% | 9.6% | 9.4% | 9.7% |
| Adjusted EPS (₹) | 41.7 | 41.3 | 55.4 | 66.1 | 68.0 | 58.6 | 76.2 | 90.2 | 110.0 | 113.5 |
| Dividend Payout Ratio (%) | 79% | 80% | 78% | 76% | 74% | 68% | 91% | 89% | 84% | 84% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 212 | 263 | 283 | 228 | 237 | 235 | 280 | 305 | 342 | 368 |
| Share Capital ⓘ | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 | 12 |
| Reserves ⓘ | 200 | 251 | 271 | 216 | 225 | 223 | 268 | 293 | 330 | 356 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade Payables | 48 | 54 | 70 | 98 | 104 | 99 | 164 | 130 | 166 | 158 |
| Others Liabilities ⓘ | 65 | 19 | 19 | 21 | 25 | 21 | 15 | 26 | 27 | 27 |
| Total Liabilities ⓘ | 325 | 337 | 372 | 347 | 366 | 355 | 458 | 461 | 535 | 554 |
Fixed Assets | ||||||||||
| Gross Block | 163 | 193 | 197 | 207 | 238 | 252 | 259 | 267 | 253 | 229 |
| Accumulated Depreciation | 80 | 92 | 105 | 115 | 130 | 148 | 168 | 173 | 166 | 153 |
| Net Fixed Assetsⓘ | 84 | 101 | 92 | 92 | 108 | 103 | 92 | 95 | 87 | 75 |
| CWIP ⓘ | 5 | 0 | 0 | 6 | 3 | 4 | 1 | 2 | 2 | 38 |
| Investmentsⓘ | 42 | 11 | 49 | 76 | 84 | 111 | 34 | 36 | 26 | 20 |
| Inventories | 33 | 28 | 26 | 32 | 47 | 37 | 62 | 62 | 70 | 71 |
| Trade Receivables | 7 | 7 | 13 | 15 | 19 | 4 | 113 | 104 | 128 | 120 |
Cash Equivalents  ⓘ
| 140 | 108 | 49 | 47 | 32 | 18 | 117 | 91 | 109 | 176 |
| Others Assetsⓘ | 15 | 81 | 143 | 79 | 72 | 77 | 39 | 72 | 113 | 54 |
| Total Assets ⓘ | 325 | 337 | 372 | 347 | 366 | 355 | 458 | 461 | 535 | 554 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 56 | 63 | 82 | 89 | 69 | 100 | 28 | 100 | 133 | 142 |
| PBT ⓘ | 78 | 76 | 105 | 123 | 127 | 93 | 124 | 147 | 180 | 185 |
| Adjustment ⓘ | -3 | -2 | 0 | -1 | 5 | 8 | 12 | 9 | 7 | 4 |
| Changes in Working Capital ⓘ | 8 | 13 | 15 | 11 | -19 | 23 | -72 | -18 | -6 | 1 |
| Tax Paid ⓘ | -27 | -24 | -38 | -43 | -45 | -25 | -36 | -38 | -48 | -47 |
| Cash Flow From Investing Activity ⓘ | -11 | -14 | -32 | 47 | 4 | -27 | 56 | -48 | -38 | -30 |
| Capex | -16 | -27 | -6 | -22 | -33 | -16 | -5 | -18 | -11 | -46 |
| Net Investments | -10 | -3 | -42 | 74 | 48 | -8 | 54 | -50 | -32 | 33 |
| Others ⓘ | 16 | 16 | 17 | -4 | -11 | -3 | 8 | 20 | 5 | -17 |
| Cash Flow From Financing Activityⓘ | -51 | -49 | -49 | -136 | -73 | -73 | -49 | -84 | -97 | -112 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | 0 | 0 | 0 | -1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Paid ⓘ | -51 | -49 | -49 | -64 | -73 | -73 | -49 | -84 | -97 | -112 |
| Others ⓘ | 0 | 0 | 0 | -71 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Cash Flow ⓘ | -6 | 0 | 1 | 1 | 0 | 0 | 36 | -32 | -2 | 1 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 24.57 | 21.59 | 25.2 | 31.35 | 35.42 | 30.06 | 35.93 | 37.4 | 41.27 | 38.81 |
| ROCE (%) | 36.89 | 32.08 | 38.58 | 48.34 | 54.66 | 39.29 | 48.21 | 50.13 | 55.51 | 52.12 |
| Asset Turnover Ratio | 1.81 | 1.79 | 2.11 | 2.21 | 2.44 | 2.14 | 2.43 | 2.47 | 2.85 | 2.61 |
| PAT to CFO Conversion(x) | 1.08 | 1.24 | 1.19 | 1.11 | 0.84 | 1.41 | 0.3 | 0.92 | 0.99 | 1.03 |
| Working Capital Days | ||||||||||
| Receivable Days | 4 | 4 | 5 | 7 | 7 | 5 | 22 | 35 | 30 | 32 |
| Inventory Days | 24 | 19 | 13 | 13 | 17 | 20 | 18 | 20 | 17 | 18 |
| Payable Days | 48 | 47 | 46 | 54 | 56 | 63 | 63 | 60 | 48 | 53 |
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.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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