Swaraj Engines Limited (SWARAJENG) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Swaraj Engines Limited ₹2,125, price ₹3,543, upside -40.0%, quality 67 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range ₹1,088 – ₹4,484 · fair‑value band ₹1,065 – ₹3,372 · the ₹3,543 price screens above the ₹2,125 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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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.
Stock analysis
Swaraj Engines Limited (SWARAJENG) currently trades at ₹3,543, while our model-based Fair Value estimate is ₹2,125, 40.0% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹3,835 per share, and 5 of the 26 models we run sit above the ₹3,543 price.
Bear case: the Asset-Based group reads lowest at ₹269.61, and 21 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹1,065 (bear) to ₹3,372 (bull), the price of ₹3,543 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
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.
Key figures
Market cap ₹43.0B (≈ $447M) · P/E ratio 21.4 · P/S ratio 2.09 · EPS (TTM) ₹165.80 · Dividend yield 3.1% · Net margin 9.8% · Return on equity 43.2% · Return on assets (EBIT) 36.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −32% fair-value upside, at −40%, SWARAJENG screens richer than that median.
Fair Value models
Bear ₹1,065Fair Value ₹2,125Bull ₹3,372
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹28.44 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+19.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+12.2%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+15.3%
Start year 2021 (pandemic). Over 10 years: +14.3% a year
Revenue growth 20 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+14.7%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+19.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+16.1%
Dividend (yield on the price)3.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.16.2% vs 14.5%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 12%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+40.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +34.9% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Auto Parts · 671 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside−40.0% · Below median
Profitability
Return on equity (TTM)43.2% · Top 25%
Return on assets21.5% · Top 25%
Net margin (TTM)9.6% · Top 25%
Operating margin (TTM)12.1% · Top 25%
Growth and dividend
Revenue growth21.5% · Top 25%
Dividend yield (TTM)3.1% · Above median
Valuation Multiplesvs Auto Parts median · lower = cheaper
P/E (TTM)21.4× · Pricier than median
P/B8.80× · Priciest 25%
P/S (TTM)2.04× · Pricier than median
P/FCF68.5× · Priciest 25%
EV/EBITDA15.2× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 26
FUTURE (revenue growth)100· sector 30
PAST (return on equity)100· sector 30
HEALTH (low debt)0· sector 95
DIVIDEND (yield)62· sector 38
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Swaraj Engines Limited (SWARAJENG) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹2,125 versus a price of ₹3,543, about −40% upside (overvalued).
What is the fair value of SWARAJENG?
Our model-based fair value for Swaraj Engines Limited is ₹2,125 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹3,543.
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 price target for Swaraj Engines Limited (SWARAJENG)?
Our model-based price target is the fair value of ₹2,125 (as of Oct 2, 2026) from 26 valuation models. Cautious scenario ₹1,065, optimistic scenario ₹3,372. It is a calculation from audited fundamentals, not an analyst target.
What is the Swaraj Engines Limited stock forecast for 2026?
Our models put fair value at ₹2,125, about −40% upside versus a price of ₹3,543 (overvalued). Cautious scenario ₹1,065, optimistic scenario ₹3,372. The calculation is refreshed regularly with new filings.
What is the revenue of Swaraj Engines Limited (SWARAJENG)?
Swaraj Engines Limited reported trailing-twelve-month revenue of about ₹21.1B (latest available figure, as of Oct 2, 2026).
Does Swaraj Engines Limited pay a dividend?
Swaraj Engines Limited currently shows a dividend yield of about 3.10% relative to its recent price (as of Oct 2, 2026).
What growth is priced into Swaraj Engines Limited (SWARAJENG)?
For today's price to be fair in a discounted-cash-flow model, Swaraj Engines Limited would have to grow free cash flow by +40.5 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.3 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of SWARAJENG use?
Our models discount Swaraj Engines Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.37, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Swaraj Engines Limited that is +40.5 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Swaraj Engines Limited (SWARAJENG) delivered so far?
Over the past 5 years revenue at Swaraj Engines Limited grew +15.3 % a year. The price currently implies +40.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Swaraj Engines Limited (SWARAJENG) growing?
The median revenue growth in the sector is +3.5 % a year. That is the yardstick for the growth priced into Swaraj Engines Limited (+40.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Swaraj Engines Limited (SWARAJENG)?
The free-cash-flow yield on the price is 1.46 %: that much free cash flow Swaraj Engines Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Swaraj Engines Limited (SWARAJENG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Swaraj Engines Limited it is ₹2,125 per share (as of Oct 2, 2026), against a price of ₹3,543. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Swaraj Engines Limited stock overvalued or undervalued in 2026?
As of Oct 2, 2026, SWARAJENG trades above its calculated fair value: price ₹3,543, fair value ₹2,125, a gap of about −40% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SWARAJENG?
No. The price is what the market pays today (₹3,543); the fair value is what the company's own numbers justify (₹2,125). For Swaraj Engines Limited the two are ₹1,418 per share apart. That gap is exactly why we show both numbers side by side.
How much is Swaraj Engines Limited worth?
The market values Swaraj Engines Limited at about ₹43.0B (market capitalisation, as of Oct 2, 2026). Per share that is ₹3,543; our models calculate a fair value of ₹2,125 per share.
What do the bullish and bearish scenarios say about SWARAJENG?
Our models span a range for Swaraj Engines Limited: cautious scenario ₹1,065, base ₹2,125, optimistic ₹3,372 per share (as of Oct 2, 2026, price ₹3,543). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SWARAJENG?
Swaraj Engines Limited trades at a price-to-earnings ratio of 21.4 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,125 is built from several models across several years. Other multiples: P/B 8.8, P/S 2.0, EV/EBITDA 15.2.
How solid is the balance sheet of Swaraj Engines Limited (SWARAJENG)?
Balance-sheet figures for Swaraj Engines Limited (as of Oct 2, 2026): return on equity 43.2%. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is SWARAJENG from its 52-week high?
Swaraj Engines Limited trades at ₹3,543, about 17% below its 52-week high of ₹4,244 and 10% above the low of ₹3,220 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,125 is for.
Which stocks are comparable to Swaraj Engines Limited?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Swaraj Engines Limited stock attractive at the current price?
The data as of Oct 2, 2026: price ₹3,543, calculated fair value ₹2,125 (−40%), Quality Score 67/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SWARAJENG calculated?
We run Swaraj Engines Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹2,125, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Swaraj Engines Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Swaraj Engines Limited (SWARAJENG)?
The closing price on Oct 1, 2026 was ₹3,543. Our model-based fair value is ₹2,125, about −40% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Swaraj Engines Limited right now?
The price sits above even our optimistic bull case (₹3,372). The favourable scenario is already priced in. The model range is unusually wide (₹1,065 to ₹3,372). 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.
Where does the earnings growth of Swaraj Engines Limited (SWARAJENG) come from?
Earnings per share at Swaraj Engines Limited grew +12.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.1 %, EBIT margin +1.9 %, tax rate +1.3 %, residual (interest, one-offs) −3.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Swaraj Engines Limited
How large is the market capitalisation of Swaraj Engines Limited (SWARAJENG)?
The market capitalisation of Swaraj Engines Limited is ₹43.0B (≈ $447M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Swaraj Engines Limited (SWARAJENG)?
The price-to-sales ratio of Swaraj Engines Limited is 2.09 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Swaraj Engines Limited (SWARAJENG)?
Earnings per share at Swaraj Engines Limited are ₹165.80 (price ÷ EPS = P/E 21.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Swaraj Engines Limited (SWARAJENG)?
The dividend yield of Swaraj Engines Limited is 3.1% (payout 66.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Swaraj Engines Limited (SWARAJENG)?
The net margin of Swaraj Engines Limited is 9.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Swaraj Engines Limited (SWARAJENG)?
The return on equity (ROE) of Swaraj Engines Limited is 43.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Swaraj Engines Limited (SWARAJENG)?
On an EBIT basis the return on assets of Swaraj Engines Limited is 36.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Swaraj Engines Limited (SWARAJENG)?
The operating margin of Swaraj Engines Limited is 12.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Swaraj Engines Limited (SWARAJENG)?
Revenue at Swaraj Engines Limited is growing +21.5% versus a year earlier (3y avg +12.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Swaraj Engines Limited (SWARAJENG)?
Earnings per share at Swaraj Engines Limited are growing +11.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Swaraj Engines Limited (SWARAJENG) hold?
Swaraj Engines Limited holds more cash than debt, ₹152M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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