Mehabe score: 6 G Factor: 7 Piotski Score: 7 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 7 and Piotski score of 7.
Description
Swaraj Engines was established in 1989 it manufactures diesel engines specifically for tractors in the range of 22 HP to above 65 HP and hi-tech engine components. # #
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Main Points
Company History
The company has been promoted jointly by Punjab Tractors Ltd. and Kirloskar Oil Engines Ltd.
In 1995 it expanded its capacity to 42,000 engines p.a. #
The current promoters of the company are Mahindra & Mahindra Limited (“M&M”) and Kirloskar Industries Limited (“KIL”) holding 34.76% and 17.43% respectively in the Company.Site:SWARAJENGMain Symbol:SWARAJENG
Stock trades at 1773.0, above its 50dma 1668.09. It also trades above its 200dma 1485.82. The stock remains bullish on techicals
The 52 week high is at 2000.00 and the 52week low is at 1254.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 33.55%
– has been maintaining a healthy dividend payout of 77.47%
Weakness
– Stock is trading at 7.69 times its book value
-Debtor days have increased from 17.25 to 41.95 days.
Competition
– The industry trades at a mean P/E of 24.8x. Cummins India trades at the industry’s max P/E of 36.7x. SWARAJENG trades at a P/E of 18.2x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. SWARAJENG has a G-Factor of 7 and Piotski scoreof 7.
– Average 1 month return for industry is 11.1%. The max 1- month return was given by G G Engineering: a return of 25.24 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 315.0 cr compared to Rs 117.0 cr for period ended Jun 2020, a rise of 169.2%
Operating Profits reported at Rs 47.0 cr for period ended Jun 2021 vis-vis 13.0 for period ended Jun 2020 .
Operating Margins expanded 381.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 27.72 compared to Rs 26.82 for previous quarter ended Mar 2021 and Rs 6.46 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1184.0 cr for period ended TTM vis-vis sales of Rs 987.0 cr for the period ended Mar 2021, a healthy growth of 16.6%. The 3 year sales cagr stood at 10.7%.
Net Profit reported at Rs 118.0 cr for period ended TTM vis-vis sales of Rs 93.0 cr for the period ended Mar 2021, rising 21.2%.
Company recorded a healthy Net Profit CAGR of 12.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 36.0% compared to 34.0% over the last 3 Years. – The stock has given a return of 24% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 73% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 91% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 1.58% vis-vis 1.17% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 35.83% vis-vis 34.6% for Dec 2020
Conclusion
– is almost debt free.
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 33.55%
– has been maintaining a healthy dividend payout of 77.47% – Stock is trading at 7.69 times its book value
-Debtor days have increased from 17.25 to 41.95 days.
