“Swaraj Engines Ltd. (SEL) is a joint venture between erstwhile Punjab Tractors Ltd. (PTL), which has since been merged with Mahindra & Mahindra Ltd. (M&M) and Kirioskar Oil Engines Ltd. (KOEL)....
Fairwealth Securities is bullish on Swaraj Engines (SEL) and has recommended buy rating on the stock with a target price of Rs 518 in its September 23, 2011 research report.
“Swaraj Engines Ltd. (SEL) is a joint venture between erstwhile Punjab Tractors Ltd. (PTL), which has since been merged with Mahindra & Mahindra Ltd. (M&M) and Kirioskar Oil Engines Ltd. (KOEL). The Company's principal activity is to manufacture and supply of engines and hi-tech engine components for tractors and other commercial vehicles. SEL has supplied around 3,57,000 engines for fitment into “Swaraj” tractors. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 15% over 2010 to 2013E respectively. The Company products include internal combustion diesel engines, diesel engine components and spare parts. It supplies engines to Punjab Tractors Ltd and engine components to Swaraj Mazda Ltd. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter.”
“Swaraj Engines Ltd disclosed results for the quarter ended June 2011. Net sales for the quarter moved up 30% to Rs 1102.20 million as compared to Rs 849 million during the corresponding quarter last year. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter. The Basic EPS of the company stood at Rs 10.90 for the quarter ended June 2011.”
“At the current market price of Rs 458, the stock is trading at 11.32 x FY12E and 10.03 x FY13E respectively. Price to Book Value of the stock is expected to be at 2.81 x and 2.19 x respectively for FY12E and FY13E. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs 40.46 and Rs 45.65 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 15% over 2010 to 2013E respectively. The Company products include internal combustion diesel engines, diesel engine components and spare parts. It supplies engines to Punjab Tractors Ltd and engine components to Swaraj Mazda Ltd. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter. On the basis of EV/EBITDA, the stock trades at 7.98 x for FY12E and 7.06 x for FY13E. Long term prospects of both tractor and commercial vehicle industry are rated good. In view of the various domestic macro economic indicators, it is expected that the Indian tractor industry would maintain a growth trend in the long term. Further, with Government massive investments planned for urban and rural infrastructure including roads, ports, power etc., coupled with ongoing growth trends in industry. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 518 for Medium to Long term investment,” says Fairwealth Securities research report.
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Fairwealth Securities is bullish on Swaraj Engines (SEL) and has recommended buy rating on the stock with a target price of Rs 518 in its September 23, 2011 research report.
“Swaraj Engines Ltd. (SEL) is a joint venture between erstwhile Punjab Tractors Ltd. (PTL), which has since been merged with Mahindra & Mahindra Ltd. (M&M) and Kirioskar Oil Engines Ltd. (KOEL). The Company's principal activity is to manufacture and supply of engines and hi-tech engine components for tractors and other commercial vehicles. SEL has supplied around 3,57,000 engines for fitment into “Swaraj” tractors. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 15% over 2010 to 2013E respectively. The Company products include internal combustion diesel engines, diesel engine components and spare parts. It supplies engines to Punjab Tractors Ltd and engine components to Swaraj Mazda Ltd. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter.”
“Swaraj Engines Ltd disclosed results for the quarter ended June 2011. Net sales for the quarter moved up 30% to Rs 1102.20 million as compared to Rs 849 million during the corresponding quarter last year. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter. The Basic EPS of the company stood at Rs 10.90 for the quarter ended June 2011.”
“At the current market price of Rs 458, the stock is trading at 11.32 x FY12E and 10.03 x FY13E respectively. Price to Book Value of the stock is expected to be at 2.81 x and 2.19 x respectively for FY12E and FY13E. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs 40.46 and Rs 45.65 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 15% over 2010 to 2013E respectively. The Company products include internal combustion diesel engines, diesel engine components and spare parts. It supplies engines to Punjab Tractors Ltd and engine components to Swaraj Mazda Ltd. During the quarter, the company has reported Net Profit increased to Rs 135.40 million from Rs 106.90 million in previous year same quarter. On the basis of EV/EBITDA, the stock trades at 7.98 x for FY12E and 7.06 x for FY13E. Long term prospects of both tractor and commercial vehicle industry are rated good. In view of the various domestic macro economic indicators, it is expected that the Indian tractor industry would maintain a growth trend in the long term. Further, with Government massive investments planned for urban and rural infrastructure including roads, ports, power etc., coupled with ongoing growth trends in industry. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 518 for Medium to Long term investment,” says Fairwealth Securities research report.
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