ICICI Direct has given Hold recommendation for Swaraj Engines with a target price of Rs. 1680 in its research report issued on Apr 27, 2022

ICICI Direct’s research report on Swaraj Engines

Swaraj Engines (SEL) is involved in manufacturing diesel engines for M&M’s Swaraj brand of tractors. It is headquartered at Mohali (Punjab). Steady ~10% compounding of revenues, EBITDA, PAT over past five years • Net cash positive b/s; consistent cash flow generation; highly capital efficient player with history of >30% return ratios & high dividend pay-outs.


We maintain HOLD rating tracking muted growth prospects in tractor space on high base of FY21 amid high dividend payout & resulting yields (~5%). Rolling over our valuations to FY24E, we now value SEL at Rs 1,680 i.e. 15x P/E on FY24E EPS of ~Rs112/share (earlier target price Rs 1,720).

Leave a Reply

Your email address will not be published.