Jan 9: Swaraj Engines Ltd which has seen steady growth in its share price in recent weeks is expected to attract investor attention following the offer to buy back shares by the company.
In a document filed with Securities and Exchange Board of India (SEBI), the company has offered to buyback 2,94,746 shares at a price of Rs 2,400. The buyback will be undertaken on a proportionate basis from the shareholders as of January 12, 2018.
The aggregate paid up capital and free reserves of the company as on 31 March 2017 was Rs 282 cr. The company was established in 1989 as Punjab Tractors Ltd which was merged with Mahindra & Mahindra Ltd and Kirloskar Engines Ltd in 1985. The primary business of Swaraj Engines is the manufacture and sale of engines in the range of 22 HP to above 54 HP.
The company has reported a net profit of Rs 68.83 cr in 2017 as against Rs 51.31 cr in 2016. In September quarter, net profits rose 22% to Rs 23.50 cr while sales rose 17.18% to Rs 208.66 on annualised basis. Shares are trading at 2195 levels at a PE of 36 indicative of moderate valuation by market.
On technical charts, RSI of 82.46 indicates bullish overbought position, while MACD has witnessed a bullish crossover signalling buying opportunity and ADX of 50 indicates uptrend