SWANCORP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | SWANCORP | Market Cap | 9,968 Cr. | Current Price | 318 ₹ | High / Low | 527 ₹ |
| Stock P/E | 537 | Book Value | 146 ₹ | Dividend Yield | 0.03 % | ROCE | 0.12 % |
| ROE | 0.07 % | Face Value | 1.00 ₹ | DMA 50 | 342 ₹ | DMA 200 | 403 ₹ |
| Chg in FII Hold | 0.71 % | Chg in DII Hold | 0.06 % | PAT Qtr | 2.22 Cr. | PAT Prev Qtr | 5.61 Cr. |
| RSI | 41.3 | MACD | -6.35 | Volume | 4,90,803 | Avg Vol 1Wk | 6,47,613 |
| Low price | 295 ₹ | High price | 527 ₹ | PEG Ratio | -419 | Debt to equity | 0.08 |
| 52w Index | 10.2 % | Qtr Profit Var | 41.4 % | EPS | 0.59 ₹ | Industry PE | 14.7 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹2.22 Cr. vs ₹5.61 Cr. previous quarter, showing steep decline.
- Margins: ROE at 0.07% and ROCE at 0.12% reflect extremely weak efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.08 indicates low leverage, balance sheet is stable but earnings are fragile.
- Cash Flow: Weak due to low profitability, despite minimal debt burden.
💹 Valuation Indicators
- P/E Ratio: 537 vs Industry PE of 14.7 — extremely high, signaling severe overvaluation.
- P/B Ratio: Price ₹318 vs Book Value ₹146 → ~2.18x, moderately expensive relative to assets.
- PEG Ratio: -419 indicates negative growth outlook.
- Intrinsic Value: Current price appears significantly overvalued compared to fundamentals.
🏭 Business Model & Advantage
Swan Energy operates across textiles, real estate, and energy projects. Its diversified presence provides some resilience, but profitability remains weak. Competitive advantage is limited due to fragmented operations and lack of strong market leadership.
📈 Technicals & Entry Zone
- RSI at 41.3 indicates neutral to slightly oversold conditions.
- MACD negative (-6.35) suggests short-term weakness.
- Entry Zone: Attractive only if price corrects to ₹280–₹300 range.
- Long-term Holding: Risky due to poor profitability and extreme valuations; suitable only for high-risk investors.
✅ Positive
- Low debt-to-equity ratio (0.08).
- FII holdings increased (+0.71%).
- DII holdings increased (+0.06%).
⚠️ Limitation
- Extremely high P/E ratio (537).
- Weak ROE (0.07%) and ROCE (0.12%).
- Negative PEG ratio (-419) signals poor growth prospects.
📰 Company Negative News
- Quarterly PAT dropped from ₹5.61 Cr. to ₹2.22 Cr.
- Profitability metrics remain extremely weak.
🌟 Company Positive News
- Minor increase in FII and DII holdings.
- Diversified business presence across multiple sectors.
🏭 Industry
Industry PE at 14.7 reflects moderate valuations. Swan Energy trades at an extreme premium, disconnected from sector fundamentals. The industry outlook is stable, but Swan’s weak profitability limits its ability to benefit.
🔎 Conclusion
Swan Energy shows negligible debt and diversified operations, but profitability is extremely weak and valuations are unsustainably high. Long-term investors should be cautious, with accumulation only in the ₹280–₹300 range if risk appetite allows. Conservative investors may avoid due to poor fundamentals.
For broader context, you could explore a peer comparison or an industry outlook to complement this analysis.