Company Update - Swaraj Engines - ICICI Direct

SEL reported steady Q4FY22 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 ASP increase
- Operating margins improved 50 bps QoQ to 12.8% in Q4FY22
- Consequent PAT was down 33% YoY to Rs. 22 crore (high margins in Q2FY21)

Key triggers for future price performance

- Play on farm mechanisation courtesy ~33% volume share of M&M's tractor sales via Swaraj brand. Beneficiary of normal to positive monsoons

- Superlative return ratios profile along with positive CFO, FCF generation

- Attractive dividend play, with present dividend yield at ~5%

- Sales, PAT to grow at 10%, 11.5% CAGR, respectively, over FY21-24E, building in ~6.6% volume CAGR

For details, click on the link below: Link to the report

Shares of Swaraj Engines Limited was last trading in BSE at Rs. 1503.00 as compared to the previous close of Rs. 1495.85. The total number of shares traded during the day was 1037 in over 135 trades.

The stock hit an intraday high of Rs. 1525.00 and intraday low of 1498.65. The net turnover during the day was Rs. 1568055.00.

Source : Equity Bulls

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SwarajEngines INE277A01016 CompanyUpdate ICICIDirect