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Entry Price

1,400.00

Target

1,710.00

Recommend Date

02-11-2020

Return

22.14 %
BUY

Date : 02-11-2020

Swaraj Engines (SEL) reported healthy Q2FY21 numbers amid record quarterly volumes (34,489 engines, up 31.3% YoY). Net revenues rose 31.2% YoY (entirely volume led, ASPs flat) to | 292 crore, tracking a strong quarter for the domestic tractor industry. Margins rose 20 bps YoY to 13.7% courtesy savings in employee & other expenses with consequent PAT up 7% YoY to | 27 crore. SEL would be expanding capacities by 15,000 units per annum to 1.5 lakh units per annum, to be funded by internal accruals.