Mahindra group company Swaraj Engines’s shares jumped 5.47% higher to reach an intraday high of ₹ 1,755.00 apiece on Friday, after it reported a 50.50% growth in its profit for the fourth quarter ended March 31, 2023 (Q4FY23) and recommended a dividend of ₹ 92 per share.
At 02:11 PM, the company’s shares were trading at ₹ 1730.05 apiece, up 3.97%, as compared to its price of ₹ 1664.05 apiece at Thursday’s closing bell.
According to an exchange filing, Swaraj Engines reported a total income of ₹ 363.49 crores in the January to March quarter of 2023, up 48.58% compared to ₹ 244.64 crores reported in the corresponding quarter last year. Its net profit increased by 50.50% to ₹ 34.96 in the January to March quarter against ₹ 23.23 crores in the corresponding quarter of the previous year.
Its total income grew by 24.91% to ₹ 1,433.77 crore for the financial year 2022-23, as compared to ₹ 1,147.81 crores in the previous year. The company’s net profit rose 22.05% to ₹ 133.61 in FY 2022-23 as compared to ₹ 109.47 crores in FY 2021-22.
The company’s board has recommended a dividend of 920% of the face value or ₹ 92 per share. The dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM. Its register of members and share transfer books will remain closed from 8th July 2023 to 14th July 2023 (both days inclusive) to determine the names of members eligible to receive the dividend.
With a market capitalization of ₹ 2021 crores, Swaraj Engines is a small-cap stock. It has a high return on equity of 37.35% and a high dividend yield of 4.81%. Its shares were trading at a price-to-earnings ratio (P/E) of 16.78 which is lower than the Industry average of 30.97, indicating that the stock is undervalued, compared to its peers.
Swaraj Engines is a joint venture between erstwhile Punjab Tractors (since merged with Mahindra & Mahindra) and Kirloskar Oil Engines. It manufactures and supplies diesel Engines in the range of 22 HP to above 65 HP and hi-tech engine components.
Written by Simran Bafna
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