Swaraj Engines Ltd (SWARAJENG) AI Stock Analysis

• Market Cap: ₹42.16B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.67
• Revenue Growth: 18.18%
• EPS Growth: 19.70%
• Country: IN
• Employees: 297
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 34.70
• Shares Outstanding: 12,149,865
• 10 Day Avg. Volume: 2,001
• 30 Day Avg. Volume: 1,969
• PEG Ratio: 1.42
• Price to Book (P/B): 11.50
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 31.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹3,834.00 ▲(3.44% Upside)

Swaraj Engines Ltd scores well due to its strong financial performance, which is the most significant factor. Technical analysis indicates moderate momentum, while valuation suggests the stock is relatively expensive, slightly offset by a decent dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Revenue Growth

Sustained ~21% revenue growth signals durable end-market demand and expanding share in tractor engine supply. That growth supports higher capacity utilization, predictable order flow, and reinvestment ability, improving medium-term cash generation and scalability.

Margin Sustainability and Operational Efficiency

Consistently healthy gross and net margins, plus strong EBIT/EBITDA metrics, point to effective cost control and manufacturing efficiency. These operational advantages help sustain profitability through input cost cycles and support durable free cash flow generation.

Robust Cash Generation

Consistent free cash flow growth and strong operating cash conversion enhance financial flexibility, fund capex and dividends, and reduce refinancing risk. Reliable cash generation paired with conservative leverage supports strategic investments and resilience.

Negative Factors

Customer Concentration Risk

Heavy reliance on supplying engines to the Swaraj-brand tractor channel concentrates revenue and bargaining exposure. This dependence on a narrow OEM relationship raises structural risk to volume or pricing shifts and limits revenue diversification over months to years.

Product and Market Concentration

A business focused mainly on diesel powertrains for agricultural applications limits addressable markets and product mix. This structural concentration reduces flexibility to pivot into adjacent segments and can constrain long-term growth if core demand softens.

Cyclicality of End Market Demand

Dependence on the agricultural equipment cycle exposes revenues to seasonal and macro agricultural factors (farm incomes, planting cycles). This structural cyclicality can create volatility in order patterns, margins and working capital over 2-6 month horizons.

Swaraj Engines Ltd Business Overview & Revenue Model

Company Description

Swaraj Engines Limited manufactures and sells diesel engines, diesel engine components, and spare parts for tractors in India. The company was incorporated in 1985 and is based in Mohali, India.

How the Company Makes Money

Swaraj Engines Ltd generates revenue primarily through the sale of diesel engines, which are integral to the operation of Swaraj tractors and other agricultural equipment. The company benefits from a strong demand for agricultural machinery in India, where farming is a critical sector. Additionally, Swaraj Engines may derive income from after-sales services, spare parts sales, and maintenance contracts, ensuring ongoing customer engagement and loyalty. Strategic partnerships with Swaraj Tractor manufacturers and other agricultural machinery producers enhance its market reach and revenue opportunities. The company's financial performance is influenced by factors such as agricultural yield, government policies on farming, and overall economic conditions, which can impact tractor sales and, consequently, engine demand.

Swaraj Engines Ltd Financial Statement Overview

Summary

Swaraj Engines Ltd exhibits strong financial performance with robust revenue growth, healthy profit margins, a solid balance sheet with low leverage, and consistent cash flow generation. This positions the company well in the Auto - Parts industry.

Income Statement

Swaraj Engines Ltd has demonstrated a strong revenue growth trajectory with significant increases in total revenue over the years. The gross profit margin and net profit margin have been consistently healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins further underscore the company's operational efficiency, reflecting robust performance in the Auto - Parts industry.

Balance Sheet

The balance sheet of Swaraj Engines Ltd reflects a solid financial position with a low debt-to-equity ratio, suggesting a conservative approach to leverage. The company's equity ratio indicates strong capitalization, and the return on equity showcases effective utilization of shareholders' funds to generate profits. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow analysis reveals consistent growth in free cash flow, indicating strong cash generation ability. The operating cash flow to net income ratio is robust, affirming efficient conversion of profits into cash. The free cash flow to net income ratio further highlights financial flexibility, although capital expenditures have varied, impacting cash flow volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.48B	16.82B	14.19B	14.22B	11.33B	9.83B
Gross Profit	3.52B	3.55B	2.23B	1.98B	2.29B	2.05B
EBITDA	2.49B	2.27B	2.02B	1.98B	1.65B	1.44B
Net Income	1.73B	1.66B	1.38B	1.34B	1.09B	925.45M
Balance Sheet
Total Assets	0.00	6.72B	5.57B	5.36B	4.61B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.87B	1.54B	1.24B	1.22B	1.34B
Total Debt	0.00	19.90M	12.19M	12.26M	0.00	0.00
Total Liabilities	-4.19B	2.53B	1.88B	1.94B	1.56B	1.78B
Stockholders Equity	4.19B	4.19B	3.69B	3.42B	3.06B	2.81B
Cash Flow
Free Cash Flow	0.00	1.52B	945.85M	1.20B	811.86M	223.85M
Operating Cash Flow	0.00	1.77B	1.42B	1.33B	1.03B	280.01M
Investing Cash Flow	0.00	-581.40M	-295.64M	-376.30M	-514.35M	562.67M
Financing Cash Flow	0.00	-1.16B	-1.12B	-973.40M	-840.04M	-487.22M

Swaraj Engines Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3706.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SWARAJENG, the sentiment is Negative. The current price of 3706.5 is above the 20-day moving average (MA) of 3558.43, above the 50-day MA of 3633.16, and below the 200-day MA of 3963.84, indicating a bearish trend. The MACD of -52.65 indicates Positive momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SWARAJENG.

Swaraj Engines Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWARAJENG	71 Outperform	₹42.16B	22.52	―	2.90%	18.18%	19.70%
JAMNAAUTO	70 Outperform	₹49.66B	27.64	―	1.63%	-0.42%	-8.31%
JASH	65 Neutral	₹24.43B	31.51	―	0.47%	25.52%	-4.18%
JTEKTINDIA	65 Neutral	₹37.95B	51.26	―	0.49%	4.44%	-25.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GREAVESCOT	58 Neutral	₹38.04B	36.56	―	1.06%	16.82%	39.89%
KIRLOSIND	58 Neutral	₹33.13B	19.79	―	0.40%	4.87%	-13.98%

Swaraj Engines Ltd Corporate Events

Swaraj Engines Allots 2,399 Shares Under ESOP 2015

Swaraj Engines Limited has allotted 2,399 equity shares of Rs 10 each to eligible employees who exercised their stock options under the company’s Employee Stock Option Scheme 2015, following approval by the Nomination and Remuneration Committee via circular resolution dated 19 December 2025. The relatively small equity issuance reflects the company’s ongoing use of stock-based compensation to align employee interests with shareholders and to incentivise key staff, with only a marginal impact expected on the overall share capital and ownership structure.