Swaraj Engines - Superior Financial Strength Set To Persist: ICICI Direct
Diesel engines sit on the assembly line. (Photographer: Luke Sharrett/Bloomberg)

Swaraj Engines - Superior Financial Strength Set To Persist: ICICI Direct

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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.

Steady ~13% 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 payouts.

Swaraj Engines reported healthy Q1 FY22 results.

Diesel engine volumes were flattish QoQ at 33,747 units. Net sales rose 3.2% QoQ to Rs 315 crore tracking 3.5% average selling price increase.

Margins dipped minimally to 15%; profit after tax up 3.3% QoQ to Rs 33.7 crore.

Click on the attachment to read the full report:

ICICI Direct Swaraj Engines Company Update.pdf

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