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Swaraj Engines Limited (SWARAJENG) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹47.9B

SE Swaraj Engines Limited SWARAJENG · NSE
Price₹3,629
Fair Value₹2,524
Upside-30.5%
Quality67/100
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Mixed Growth
Thin margins · 9.8% net margin
generates free cash flow
2.68% dividend yield
Ranks above peers (8/13)
Wide moat 73/100
Evidence: High Range ₹1,279 – ₹4,624 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 4 days ago

Share price −2.2% over the past month.

A solid business, but screening 30% overvalued on our models.

What matters now

  • The model range is unusually wide (₹1,279 to ₹4,624). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹4,484 ₹1,088 Fair Value ₹2,524 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹1,088 – ₹4,484 · fair‑value band ₹1,279 – ₹4,624 · the ₹3,629 price screens above the ₹2,524 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Swaraj Engines Limited (SWARAJENG) currently trades at ₹3,629, while our model-based Fair Value estimate is ₹2,524, implying the stock looks roughly 30.5% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Swaraj Engines Limited generated revenue of ₹20.1B at a net margin of 9.8%. Revenue grew 20.2% year over year. It earns a return on equity of 43.2%. The balance sheet holds a net cash position of ₹152M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,279 (bear case) to ₹4,624 (bull case); at ₹3,629, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at -30%, SWARAJENG screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹1,042 ₹1,296 ₹7,398 76
Growth DCF ₹726.07 ₹1,445 ₹2,570 72
Gordon GGM ₹959.30 ₹1,995 ₹3,164 70
All 26 models by family
DCF Models
FCF DCF ₹744.27 ₹1,384 ₹2,888 38
Owner Earnings ₹1,745 ₹3,497 ₹6,827 31
5Y Revenue Exit ₹1,218 ₹2,452 ₹4,236 39
5Y EBITDA Exit ₹1,568 ₹3,222 ₹5,435 41
5Y P/E Exit ₹1,998 ₹4,168 ₹6,831 38
10Y Revenue Exit ₹1,011 ₹2,157 ₹4,136 36
10Y EBITDA Exit ₹1,301 ₹2,743 ₹5,207 37
10Y P/E Exit ₹1,594 ₹3,464 ₹6,453 35
Earnings-Based
Graham-Dodd ₹1,099 ₹6,278 ₹8,729 54
Lynch FV ₹1,767 ₹2,524 ₹3,281 50
PEG = 1.0 ₹1,767 ₹2,524 ₹3,281 46
EPV ₹1,444 ₹1,682 ₹1,891 59
Dividend Discount
Gordon GGM ₹959.30 ₹1,995 ₹3,164 70
DDM Multi-Stage ₹959.30 ₹1,682 ₹2,093 61
Multiples
P/E Multiple ₹2,666 ₹3,555 ₹4,443 63
P/S Multiple ₹1,487 ₹1,982 ₹2,478 58
P/B Multiple ₹1,207 ₹1,610 ₹2,012 55
EV/EBIT ₹2,788 ₹3,713 ₹4,638 53
EV/EBITDA ₹2,030 ₹2,702 ₹3,374 54
EV/Revenue ₹1,402 ₹1,997 ₹2,591 43
Asset-Based
NCAV (Graham) ₹201.20 ₹269.61 ₹402.41 50
Growth DCF
Growth DCF ₹726.07 ₹1,445 ₹2,570 72
Rev-Margin DCF ₹1,218 ₹2,387 ₹4,007 67
Economic Profit
Residual Income ₹1,042 ₹1,296 ₹7,398 76
ROIC Compounder ₹1,665 ₹2,232 ₹2,960 67
Growth Earnings
Growth-Adj P/E ₹2,684 ₹3,835 ₹4,985 68

Widest divergence: Growth Earnings (₹3,835) versus Asset-Based (₹269.61). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹20.1B
Revenue growth (YoY) +20.2%
Net margin 9.8%
Return on equity 43.2%
Free cash flow ₹629M FY2026
P/E ratio 22.4
More key figures
Operating margin 12.8%
EPS (TTM) ₹161.68
Dividend yield 2.7%
EPS growth (YoY) +20.1%
Net cash ₹152M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 64 · Market factors (momentum, volatility) 51

Profitability 86
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Swaraj Engines Limited manufactures and sells diesel engines and its components, hi-tech engine components, and spare parts for tractor application in India. The company was incorporated in 1985 and is based in Mohali, India. Swaraj Engines Limited is a subsidiary of Mahindra & Mahindra Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Swaraj Engines Limited reported revenue of ₹20.1B in FY2026 versus ₹11.3B in FY2022, a compound +15.4%/yr. Reported net income was ₹2.0B in FY2026, compounding +15.7%/yr from FY2022.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹20.1B
Latest YoY
+19.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.3%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.7%
Revenue +15.4%/yr
FY22 ₹11.3B
FY23 ₹14.2B
FY24 ₹14.2B
FY25 ₹16.8B
FY26 ₹20.1B
Net income +15.7%/yr
FY22 ₹1.1B
FY23 ₹1.3B
FY24 ₹1.4B
FY25 ₹1.7B
FY26 ₹2.0B
Character of growth · EPS growth decomposed (2015-2026) +12.9 % p.a.
Revenue per share +13.1 pp

of which total revenue +12.8 pp · buybacks/dilution +0.3 pp

EBIT margin +1.9 pp
Tax rate +1.3 pp
Residual (interest, one-offs) −3.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

SWARAJENG screens 30% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Swaraj Engines Limited Fair Value". https://www.fairvalue-calculator.com/stock/SWARAJENG

Peer Group

Auto Parts · 639 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside −30% · Below median
Return on equity (TTM) 43% · Top 25%
Return on assets 22% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth 20% · Top 25%
Dividend yield (TTM) 2.7% · Above median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 22.4× · Pricier than median
P/B 9.79× · Pricier than 75% of peers
P/S (TTM) 2.39× · Pricier than 75% of peers
P/FCF 0.8× · Cheaper than median
EV/EBITDA 17.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 100 · sector 24
PAST 100 · sector 26
HEALTH 0 · sector 95
DIVIDEND 54 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Bosch Limited BOSCHLTD ₹46,750 ₹13,061 -72%
Bharat Forge Limited BHARATFORG ₹2,082 ₹393.20 -81%
Uno Minda Limited UNOMINDA ₹1,232 ₹426.57 -65%
Schaeffler India Limited SCHAEFFLER ₹4,126 ₹1,412 -66%
Hankook Tire & Technology Co 161390 71,500 KRW 196,479 KRW +175%
Sona BLW Precision Forgings Limited SONACOMS ₹799.90 ₹207.06 -74%
Balkrishna Industries Limited BALKRISIND ₹2,497 ₹1,211 -51%

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Frequently asked questions

Is Swaraj Engines Limited (SWARAJENG) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹2,524 versus a price of ₹3,629, about −30% (overvalued).
What is the fair value of SWARAJENG?
Our model-based fair value for Swaraj Engines Limited is ₹2,524 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹3,629.
What is the quality score of SWARAJENG?
Swaraj Engines Limited has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Swaraj Engines Limited (SWARAJENG)?
Swaraj Engines Limited reported trailing-twelve-month revenue of about ₹20.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of SWARAJENG?
The net profit margin of Swaraj Engines Limited is about 9.8%, meaning it keeps roughly 9.8% of revenue as net income. Based on the latest reported figures.
Does Swaraj Engines Limited pay a dividend?
Swaraj Engines Limited currently shows a dividend yield of about 2.68% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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