Swaraj Engines And Two More Top Dividend Stocks On The Indian Exchange

In the past year, the Indian stock market has experienced a robust growth of 43%, despite a recent dip of 1.3% over the last seven days. In this dynamic environment, dividend stocks like Swaraj Engines can appeal to investors looking for potential income combined with earnings growth prospects, which are anticipated to increase by 16% annually.

Top 10 Dividend Stocks In India

Name	Dividend Yield	Dividend Rating
Balmer Lawrie Investments (BSE:532485)	3.93%	★★★★★★
D. B (NSEI:DBCORP)	3.72%	★★★★★☆
HCL Technologies (NSEI:HCLTECH)	3.29%	★★★★★☆
Indian Oil (NSEI:IOC)	8.32%	★★★★★☆
VST Industries (BSE:509966)	3.26%	★★★★★☆
Bharat Petroleum (NSEI:BPCL)	6.81%	★★★★★☆
NMDC (BSE:526371)	3.10%	★★★★★☆
Redington (NSEI:REDINGTON)	3.07%	★★★★★☆
Bank of Baroda (NSEI:BANKBARODA)	3.00%	★★★★★☆
PTC India (NSEI:PTC)	3.62%	★★★★★☆

Click here to see the full list of 18 stocks from our Top Indian Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Swaraj Engines (NSEI:SWARAJENG)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Swaraj Engines Limited, based in India, specializes in manufacturing and selling diesel engines, diesel engine components, and spare parts for tractors, with a market capitalization of approximately ₹35.50 billion.

Operations: Swaraj Engines Limited generates its revenue primarily from the sale of diesel engines, components, and spare parts, totaling ₹14.37 billion.

Dividend Yield: 3.3%

Swaraj Engines has shown robust growth with earnings increasing by 15.6% annually over the past five years, and a recent quarterly report indicating continued revenue and net income improvements. Despite its attractive price-to-earnings ratio of 25.3x, which is below the Indian market average, dividend sustainability is a concern due to a high cash payout ratio of 122% and volatile dividend history over the last decade. The company's recent penalty for GST violations is not expected to impact financials significantly.

• Delve into the full analysis dividend report here for a deeper understanding of Swaraj Engines.
• In light of our recent valuation report, it seems possible that Swaraj Engines is trading behind its estimated value.

Ujjivan Small Finance Bank (NSEI:UJJIVANSFB)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Ujjivan Small Finance Bank Limited offers a range of banking and financial services across India, with a market capitalization of approximately ₹86.11 billion.

Operations: Ujjivan Small Finance Bank Limited generates revenue primarily through three segments: Treasury (₹7.15 billion), Retail Banking (₹56.18 billion), and Wholesale Banking (₹1.31 billion).

Dividend Yield: 3.4%

Ujjivan Small Finance Bank has recently increased its dividend to INR 1.50, reflecting a commitment to returning value to shareholders amidst robust earnings growth, with net income rising to INR 12.82 billion from INR 11 billion the previous year. However, the bank's dividend sustainability may be of concern given its relatively high bad loans ratio at 2.3%. Recent executive changes and the upcoming AGM suggest potential strategic shifts that could impact future performance and dividend policies.

• Click to explore a detailed breakdown of our findings in Ujjivan Small Finance Bank's dividend report.
• Our valuation report unveils the possibility Ujjivan Small Finance Bank's shares may be trading at a discount.

Uniparts India (NSEI:UNIPARTS)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Uniparts India Limited is a global manufacturer and supplier of engineering systems and components for off-highway vehicles, operating in regions including India, the US, Europe, Asia Pacific, and Japan, with a market capitalization of approximately ₹22.02 billion.

Operations: Uniparts India Limited generates revenue primarily through its linkage parts and components segment for off-highway vehicles, totaling ₹11.40 billion.

Dividend Yield: 4%

Uniparts India's dividend yield stands at 4.01%, ranking in the top quartile of Indian dividend stocks, supported by a payout ratio of 62.6% and a cash payout ratio of 53.9%. However, its recent financial performance shows a decline, with net income dropping to INR 1.25 billion from INR 2.05 billion year-over-year and sales also decreasing. This raises concerns about the sustainability of dividends despite current coverage by earnings and cash flows, especially as the company has only recently initiated dividend payments.

• Click here to discover the nuances of Uniparts India with our detailed analytical dividend report.
• According our valuation report, there's an indication that Uniparts India's share price might be on the cheaper side.

Key Takeaways

• Take a closer look at our Top Indian Dividend Stocks list of 18 companies by clicking here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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