Swaraj Engines Limited

OPM at 13.56% is thin—5–10% revenue shock or input-cost spike swings profit materially.

Stock down 7.98% YoY while revenue up 21.5% (Jun 2025–26); valuation compression at 21.81 PE—verify if justified.

ROE 43.23% exceptional; verify if repeatable or cyclical peak unsustainable next cycle.

Compressors, pumps, diesel engines serve cyclical sectors (agriculture, construction, manufacturing)—verify if 70% revenue growth is structural shift or cycle recovery.

Revenue grew 70% in 18 months (Dec 2024 ₹345.5 Cr → Jun 2026 ₹588.39 Cr), YoY growth +21.5% (Jun 2025–26)—verify if demand momentum holds.

Net profit grew 74% same span (₹31.95 Cr → ₹55.53 Cr) at stable 13.56% OPM—consistent profitability scaling.

OPM held 13–13.9% across 8 quarters despite 70% growth, indicating scalable cost structure—verify if fixed-cost absorption can drive margin expansion.

Zero debt (D/E = 0) with ₹55.53 Cr profit (Jun 2026) and regular annual dividends show cash generation; verify if capex or R&D deployment planned for growth.