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.
Outlook
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).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
