Maintain BUY with a reduced TP of Rs 1828 (20x Dec-20E EPS). Swaraj Engines Ltd (SEL)s 3QFY19 revenue was in line with estimate (Rs 1.99bn, +8% YoY) while operating margin saw a dip of 17bps YoY/-241bps QoQ to 13.8% owing to 104bps contraction in gross margin. APAT stood at Rs 173mn (flat YoY). Engine volumes grew by 2.7% YoY to 22.569k units while tractor sales at the parent level (M&M;) were at 90.72k units (+11% YoY). During 9MFY19, M&M;s tractor production grew by 9% YoY and sales grew 8.5%, inventory is at normal level.