ADVERTISEMENT

Swaraj Engines - Attractive Dividend Yield, Low Growth Prospect To Weigh: ICICI Direct

Swaraj Engines - Attractive Dividend Yield, Low Growth Prospect To Weigh: ICICI Direct

A worker fixes parts to a 4 cylinder diesel motor engine on the production line. (Photographer: Alex Kraus/Bloomberg)
A worker fixes parts to a 4 cylinder diesel motor engine on the production line. (Photographer: Alex Kraus/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Swaraj Engines Ltd. is involved in manufacturing diesel engines for Mahindra and Mahindra Ltd.’s Swaraj brand of tractors. It is headquartered at Mohali (Punjab).

Steady ~10% compounding of revenues, Ebitda, profit after tax over past five years. Net cash positive balance sheet; consistent cash flow generation; highly capital efficient player with history of more than 30% return ratios and high dividend pay-outs.

Swaraj Engines reported steady Q4 FY22 results. Diesel engine volumes were at 23,937 units, down 29% YoY.

Net sales declined 21% YoY to Rs 242 crore tracking 1.6% QoQ average selling price increase.

Operating margins improved 50 basis points QoQ to 12.8% in Q4 FY22. Consequent profit after tax was down 33% YoY to Rs 22 crore (high margins in Q2 FY21).

Click on the attachment to read the full report:

ICICI Direct Swaraj Engines Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.