⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SWANCORP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | SWANCORP | Market Cap | 10,901 Cr. | Current Price | 347 ₹ | High / Low | 527 ₹ |
| Stock P/E | 587 | Book Value | 146 ₹ | Dividend Yield | 0.03 % | ROCE | 0.12 % |
| ROE | 0.07 % | Face Value | 1.00 ₹ | DMA 50 | 393 ₹ | DMA 200 | 441 ₹ |
| Chg in FII Hold | 0.81 % | Chg in DII Hold | -0.08 % | PAT Qtr | 2.22 Cr. | PAT Prev Qtr | 5.61 Cr. |
| RSI | 38.0 | MACD | -18.6 | Volume | 16,62,355 | Avg Vol 1Wk | 12,14,564 |
| Low price | 326 ₹ | High price | 527 ₹ | PEG Ratio | -459 | Debt to equity | 0.08 |
| 52w Index | 10.7 % | Qtr Profit Var | 41.4 % | EPS | 0.59 ₹ | Industry PE | 14.6 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT dropped from ₹5.61 Cr. to ₹2.22 Cr., showing weak earnings momentum.
- Margins: ROE at 0.07% and ROCE at 0.12% reflect extremely poor profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.08 indicates low leverage, but weak returns limit attractiveness.
- Cash Flow: Limited due to low profitability, raising sustainability concerns.
💹 Valuation Indicators
- P/E Ratio: 587 vs Industry PE of 14.6 → extremely overvalued compared to peers.
- P/B Ratio: Current Price ₹347 vs Book Value ₹146 → ~2.37x, moderate but not justified given weak fundamentals.
- PEG Ratio: -459 → indicates severe overvaluation and negative growth outlook.
- Intrinsic Value: Estimated fair value near ₹250–270, suggesting current price is significantly overvalued.
🏭 Business Model & Competitive Advantage
- Operates in diversified chemicals and fertilizers with exposure to agriculture-related demand.
- Competitive advantage is limited due to weak profitability and lack of scale compared to peers.
- Highly dependent on commodity cycles and government policies.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only below ₹250–270, closer to intrinsic value.
- Long-Term Holding: Risky for long-term investors; only suitable for speculative positions due to poor fundamentals.
✅ Positive
- Debt-to-equity ratio of 0.08 indicates low leverage.
- FII holdings increased (+0.81%), showing some foreign investor interest.
- Stock trading near 52-week low offers potential entry for high-risk investors.
⚠️ Limitation
- Extremely high P/E ratio (587) compared to industry average.
- ROE (0.07%) and ROCE (0.12%) show poor efficiency and returns.
- Negative PEG ratio (-459) signals weak growth outlook.
📉 Company Negative News
- Sharp decline in quarterly profits from ₹5.61 Cr. to ₹2.22 Cr.
- DII holdings decreased (-0.08%), showing reduced domestic institutional confidence.
📈 Company Positive News
- FII holdings increased, reflecting some foreign investor trust.
- Low debt levels provide resilience despite weak profitability.
🏭 Industry
- Chemicals and fertilizer industry is cyclical, driven by agriculture demand and raw material costs.
- Industry PE at 14.6 shows sector is moderately valued compared to Swan Energy’s extreme premium.
- Government policies on agriculture and subsidies influence demand stability.
🔎 Conclusion
Swan Energy (SWANCORP) shows very weak fundamentals with poor ROE, ROCE, and declining profits. Despite low debt, its extremely high P/E and negative PEG ratio highlight severe overvaluation. Entry is only attractive below ₹250–270 for speculative investors. Long-term holding is risky given weak profitability and dependence on external factors like commodity cycles and government policies.