At CMP of Rs 1,966, SEL trades at 28.0/25.3/22.3x FY18/FY19/20E EPS. Our fair value for the stock is Rs 2,489 (30x Sept - 19E EPS). We recently interacted with management of Swaraj Engines Ltd (SEL). The company manufactures and supplies diesel engines in the range of 20 HP to 60 HP to Swaraj Tractors, owned by Mahindra & Mahindra (M&M;). SEL is a joint holding of Kirloskar Industries (17.4% stake) and M&M; (33.2% stake).