Swaraj Engines Ltd
Ticker: SWARAJENG
Decent
72/100
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Investing Reference
Price
4000.90
Market Cap
4860.08
Debt/Equity
0.0047
ROE %
42.144
PB
11.5934
Promoter %
52.119
Pledge %
0.000
1Y Rev Growth %
18.464
5Y Rev Growth %
16.657
NP Margin %
9.774
NP Margin 5Y Avg %
9.509
Trading Reference
1M Return %
-2.760
6M Return %
-2.448
1Y Return %
35.175
% Away 52W High
17.973
% Away 52W Low
58.955
Daily Volume
6518
Investment Verdict
Hold
Score 62/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 23/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Swaraj Engines Ltd shows stable growth potential driven by strong demand in the agricultural sector.
✅ Positives
- Consistent revenue growth over the past years
- Strong market position in agricultural engines
- Robust financial health with low debt levels
⚠️ Negatives
- Dependence on cyclical agricultural demand
- Limited product diversification
- Potential impact from rising raw material costs
Verdict
Moderate growth outlook with manageable risks.
Recommendation: Consider buying for long-term growth.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Swaraj Engines Ltd is a leading manufacturer of engines for agricultural machinery in India. Catering primarily to farmers and agricultural equipment manufacturers, the company plays a pivotal role in enhancing agricultural productivity. With a focus on innovation and sustainability, Swaraj Engines ensures reliable performance and efficiency in its products, making it a trusted choice for the farming community. Its commitment to quality and customer satisfaction sets it apart in the competitive landscape.
- Leading manufacturer of agricultural engines
- Focus on innovation and sustainability
- Trusted by farmers and equipment manufacturers
- Enhances agricultural productivity
- Commitment to quality and customer satisfaction
Investment Thesis
Swaraj Engines Ltd presents a compelling investment opportunity driven by a strong promoter group, robust growth in digital services, and attractive valuation compared to peers. With a credible management team and a focus on innovation, the company is well-positioned for sustainable growth in the competitive automotive sector.
- Strong backing from the Mahindra Group enhances credibility and operational stability.
- Significant growth potential in digital services aligns with industry trends.
- Attractive valuation metrics make it a favorable choice compared to industry peers.
- Consistent performance and dividend history reflect financial health and shareholder commitment.
- Strategic initiatives in sustainability and technology adoption position the company for future success.
Opportunity vs Risk
Opportunities
- Strong demand for agricultural engines
- Growing market for farm mechanization
- Potential for export expansion
- Government support for agriculture sector
Risks ⚠️
- Volatility in raw material prices
- Dependence on monsoon patterns
- Competition from other engine manufacturers
- Regulatory changes affecting agriculture
Peer Perspective
Swaraj Engines Ltd trades at a discount to peers like Mahindra & Mahindra and Ashok Leyland, reflecting its stable margins. A sustained growth acceleration could trigger a rerating, aligning its valuation more closely with industry leaders.
Future Outlook
Swaraj Engines Ltd is well-positioned for growth, driven by increasing demand in the agricultural sector; however, successful execution of cost control measures will be crucial to sustain profitability and enhance shareholder value.
AI FAQs for Retail Users
- Q: What does Swaraj Engines Ltd do?A: Swaraj Engines Ltd manufactures engines for agricultural and industrial applications, primarily serving the tractor market.
- Q: Is Swaraj Engines Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions; consider conducting thorough research.
- Q: What are the recent financial results of Swaraj Engines Ltd?A: Recent financial results can be found in their quarterly reports; check their website for the latest updates.
- Q: How does Swaraj Engines Ltd perform in the market?A: Market performance varies; review stock trends and analyst reports for insights into its performance.
- Q: Are there any risks associated with investing in Swaraj Engines Ltd?A: Like any investment, risks include market volatility and sector-specific challenges; assess these before investing.
📊 Stock Investment Checklist (100 Points)
Swaraj Engines Ltd • Updated: 2025-09-18 07:41:35
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10BusinessHighThe company operates in the agricultural machinery sector, which is essential for India's economy, but faces competition.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have shown volatility.
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10ProfitabilityHighROE and ROCE are decent, but cash flow has been inconsistent compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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9GovernanceHighPromoter holding is strong with no pledging, but transparency in disclosures can be enhanced.
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6DriversGoodGrowth drivers include increasing agricultural mechanization, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity in trading.
Final Score & Verdict
Score 72 / 100
• Decent
Swaraj Engines Ltd shows potential for growth in a vital sector, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100