Swaraj Engines ltd – Driving Agri Sector
Swaraj Engines major business is to provide engines to Mahindra & Mahindra – Swaraj Division which is used by Mahindra & Mahindra for the manufacture of tractors. M&M is the leading manufacturer of tractors in India and has sustained its market leadership in the Indian tractor market for over 30 years. Swaraj manufactures engines catering to tractors in the 20- 50 hp segment and cater to ~85% of the total engine requirement at M&M’s Swaraj tractor division.
Swaraj Engines also manufactures hi-tech engine components for commercial vehicles for SML Isuzu (erstwhile Swaraj Mazda).
Swaraj Engines ltd is one of the Multibagger Shares, identified by Dynamic Research based on technical and fundamental research.
Swaraj Engines share price has touched a 52 week high of Rs. 1294.80 on 26 -Jul -2016 and a 52 week low of Rs.763.15on 12 -Feb -2016, and is currently trading at Rs. 1128.
Share HoldingThe promoters holding in the company stood at 50.62%, while Institutions and Non-Institutions held 15.31% and 34.08% respectively.
Some of the NonPromoters holding securities more than 1% of total number of shares are
- Bodies Corporate:4.61%
- DSP BlackRock micro cap fund:3.15%
- Pinebrdige investments Gf Mauritius limited:2.74%
- Foreign Individuals or NRI:1.65%
- Reeta Keyur Parikh:1.42%
For the quarter ended June 2016, the total income from operations of Swaraj Engines ltd has reported a growth of 50.61 % on Y-o-Y basis to Rs. 171.69 cr as against Rs. 113.99 cr during the same quarter last year. A boost up in total income from operations shows strong development in business.
The operating profit of Swaraj Engines ltd on standalone has shown a growth of 97.89% Y-o-Y to Rs. 24.44 cr as against Rs. 12.35 cr during the same quarter last year, This is mainly due to rise in topline of the company.
The net profit of Swaraj Engines has registered a growth of 63.09% Y-o-Y to Rs.19 cr as against Rs 11.65 cr during the same quarter previous year.
The earnings per share of the company have showed a growth of 63.11% Q-o-Q to Rs. 15.30 as against Rs. 9.38 during last quarter.
Annual ResultsFor the year ended March 31, 2016 Swaraj Engines ltd on Standalone basis reported net sales of Rs. 525.91 cr compared to Rs. 539.70 cr FY2015.
For the year ended March 31, 2016 Swaraj Engines on Standalone basis reported net profit of Rs. 51.20 cr compared to profit of Rs. 51.84 cr FY2015.
The above ratio suggests that the company is operating with a zero of debt which is a very positive factor for the company. The company is generating good returns with the money the share holders have invested; the above ratio also suggests that the management is very efficiently using its assets to generate earnings.
Manufacturing Capacity
The company has a current installed capacity to manufacture 75,000 units of engines. Swaraj Engines is in the midst of expanding its capacity to 105,000 units.