Despite a strong growth in the India tractor industry, Swaraj Engines (SWE) reported a moderate volume growth. Considering stellar growth reported by M&M;'s tractor division, this performance was below our estimates. 4QFY18 EBITDA/PAT improved 19.0%/17.0% YoY, on the back of 9.8% growth in volumes and 49 bps YoY expansion in EBITDA margin. SWE's EBITDA and PAT were below our expectations on account of a slower than expected volume growth, affecting the topline. We acknowledge that SWE is poised to leverage the continued good growth momentum in tractor industry, with higher return ratios. Considering growth momentum in tractor industry, we maintain our Buy rating on the...