Swaraj Engines Ltd (SWARAJENG) AI Stock Analysis

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Swaraj Engines Ltd

(NSE:SWARAJENG)

Select Model

Rating:77Outperform

Price Target:INR 4,244.00▲(22.80% Upside)

Action:reiterated

Date:10/13/26

The score is driven primarily by strong financial performance—particularly the ultra-low leverage balance sheet, high ROE, and improving revenue growth—offset by weaker FY2026 cash-flow conversion. Technicals are supportive with price above major moving averages, but mixed momentum indicators limit the technical score. Valuation is reasonable but not cheap, with the dividend yield providing a partial cushion.

Positive Factors

Exceptionally conservative balance sheetMinimal leverage reduces financial stress, interest burden, and refinancing exposure, giving Swaraj Engines greater resilience through weaker demand cycles. The balance sheet also preserves flexibility to fund operations and investment without relying heavily on additional borrowing.

Negative Factors

Weaker recent cash-flow conversionLower conversion of accounting profit into free cash flow reduces confidence in near-term earnings quality and internally funded growth. If the weaker conversion persists, higher working-capital needs or reinvestment could constrain cash available for resilience and shareholder returns.

Swaraj Engines Ltd (SWARAJENG) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 45.58B
Dividend Yield: 3.20%
Average Volume (3M): 2,211
Price to Earnings (P/E): 19.6
Beta (1Y): 1.56
Revenue Growth: 25.44%
EPS Growth: 20.17%
Country: India
Employees: 294
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Swaraj Engines Ltd Business Overview & Revenue Model

Company Description

Swaraj Engines Limited, an Indian enterprise, focuses on the production and supply of diesel engines, along with their key components and replacement parts, exclusively for the tractor sector. Founded in 1985, the company maintains its operational ba...

How the Company Makes Money

Swaraj Engines Ltd primarily makes money by manufacturing and selling diesel engines used in tractors, with revenue largely linked to volumes supplied for the Swaraj tractor ecosystem. Its core revenue stream is the sale of engines (and, where applic...

Swaraj Engines Ltd Financial Statement Overview

Summary

Strong overall fundamentals: accelerating revenue growth (to ~12.3% in FY2026), consistently healthy net margins (~9.4–9.9%), and an exceptionally conservative balance sheet with near-zero leverage and very strong ROE (~33%–40%+). The main drag is cash-flow quality—FY2026 operating cash flow fell and free cash flow dropped ~36.6% YoY, with FCF covering only ~47% of net income, indicating weaker cash conversion.

Income Statement

84Very Positive

Balance Sheet

95Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	22.43B	20.07B	16.82B	14.19B	14.22B	11.33B
Gross Profit	4.24B	3.61B	3.55B	2.23B	1.98B	2.29B
EBITDA	3.08B	2.72B	2.27B	2.02B	1.98B	1.65B
Net Income	2.13B	1.96B	1.66B	1.38B	1.34B	1.09B
Balance Sheet
Total Assets	8.46B	7.79B	6.72B	5.57B	5.36B	4.61B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.14B	1.87B	1.54B	1.24B	1.22B
Total Debt	24.80M	20.50M	19.90M	12.19M	12.26M	0
Total Liabilities	3.74B	2.90B	2.53B	1.88B	1.94B	1.56B
Stockholders Equity	4.71B	4.89B	4.19B	3.69B	3.42B	3.06B
Cash Flow
Free Cash Flow	0	628.50M	1.52B	945.85M	1.20B	811.86M
Operating Cash Flow	0	1.33B	1.77B	1.42B	1.33B	1.03B
Investing Cash Flow	0	57.30M	-581.40M	-295.64M	-376.30M	-514.35M
Financing Cash Flow	0	-1.28B	-1.16B	-1.12B	-973.40M	-840.04M

Swaraj Engines Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price3456.10

Price Trends

50DMA3540.95Negative

100DMA3622.61Negative

200DMA3600.21Negative

Market Momentum

MACD-35.81Positive

RSI43.67Neutral

STOCH53.43Neutral

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 3456.10 is below the 20-day moving average (MA) of 3505.69, below the 50-day MA of 3540.95, and below the 200-day MA of 3600.21, indicating a bearish trend. The MACD of -35.81 indicates Positive momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SWARAJENG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NRBBEARING	84Outperform	INR 43.41B	30.69	―	2.62%	14.37%	70.31%
IN:SHRIPISTON	80Outperform	INR 202.88B	33.13	―	0.24%	46.79%	7.11%
IN:FMGOETZE	79Outperform	INR 23.94B	13.82	―	1.74%	8.80%	0.63%
IN:SWARAJENG	77Outperform	INR 41.64B	19.61	―	3.20%	25.44%	20.17%
IN:PRICOLLTD	75Outperform	INR 78.49B	29.93	―	0.30%	43.26%	56.35%
IN:AUTOAXLES	67Neutral	INR 23.37B	13.50	―	2.06%	6.30%	10.84%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:SWARAJENG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SWARAJENG	Swaraj Engines Ltd	3456.10	-381.60	-9.94%
IN:AUTOAXLES	Automotive Axles Limited	1560.00	-74.26	-4.54%
IN:FMGOETZE	Federal-Mogul Goetze (India) Limited	435.00	12.06	2.85%
IN:NRBBEARING	NRB Bearings Ltd.	466.00	194.66	71.74%
IN:PRICOLLTD	Pricol Ltd.	663.75	147.90	28.67%
IN:SHRIPISTON	Shriram Pistons & Rings Ltd.	4339.80	1647.58	61.20%

Swaraj Engines Ltd Corporate Events

Swaraj Engines Secures Shareholder Approval on All Resolutions at 40th AGM

Jul 21, 2026

Swaraj Engines Limited has disclosed the voting results for its 40th Annual General Meeting, held on July 20, 2026 via video conferencing and other audio-visual means, in compliance with SEBI’s Listing Regulations on e-voting and AGM procedures...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 13, 2026

Swaraj Engines Ltd AI Stock Analysis