We recommend BUY with a TP of 2554 (30x Dec FY19E EPS). Swaraj Engines Ltd (SEL) reported good revenue growth of 18.4% YoY for 3QFY18 at Rs 1.83bn. The performance was largely driven by 14.7% YoY engine volume growth to 21,971 units and realization growth of 3.2% YoY to Rs 83,410. EBITDA grew by 11.7% YoY at Rs 257mn and EBITDAM stood at 14.0% (-85bps YoY), was largely due to drop in gross margins by 100 bps YoY and higher other expenditure which might be a one of expenditure. APAT grew by 12.6% YoY at Rs 172mn.