Q1FY22 Company Update - Swaraj Engines - ICICI Direct

SEL reported healthy Q1FY22 results.

- Diesel engine volumes were flattish QoQ at 33,747 units

- Net sales rose 3.2% QoQ to Rs. 315 crore tracking 3.5% ASP increase

- Margins dipped minimally to 15%; PAT up 3.3% QoQ to Rs. 33.7 crore

Key triggers for future price performance

- Play on farm mechanisation courtesy ~30-33% volume share of M&M's tractor sales via Swaraj brand of tractors

- Consistent >30% return ratios along with positive CFO, FCF generation

- Attractive dividend play, with present dividend yield at ~4%

- Sales, PAT to grow at 13.1%, 21.4% CAGR respectively over FY21-23E, building in 8.5% volume CAGR & 120 bps improvement in EBITDA margins

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

Shares of SWARAJ ENGINES LTD. was last trading in BSE at Rs. 1796.05 as compared to the previous close of Rs. 1770.3. The total number of shares traded during the day was 4541 in over 829 trades.

The stock hit an intraday high of Rs. 1830 and intraday low of 1772.6. The net turnover during the day was Rs. 8165438.

Source : Equity Bulls

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