SWANCORP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | SWANCORP | Market Cap | 10,484 Cr. | Current Price | 334 ₹ | High / Low | 527 ₹ |
| Stock P/E | 565 | Book Value | 146 ₹ | Dividend Yield | 0.03 % | ROCE | 0.12 % |
| ROE | 0.07 % | Face Value | 1.00 ₹ | DMA 50 | 353 ₹ | DMA 200 | 414 ₹ |
| Chg in FII Hold | 0.71 % | Chg in DII Hold | 0.06 % | PAT Qtr | 2.22 Cr. | PAT Prev Qtr | 5.61 Cr. |
| RSI | 47.6 | MACD | -1.24 | Volume | 10,00,998 | Avg Vol 1Wk | 24,08,874 |
| Low price | 295 ₹ | High price | 527 ₹ | PEG Ratio | -441 | Debt to equity | 0.08 |
| 52w Index | 17.1 % | Qtr Profit Var | 41.4 % | EPS | 0.59 ₹ | Industry PE | 15.3 |
📊 SWANCORP (Swan Energy Ltd.) shows weak fundamentals with extremely high P/E (565) compared to industry average (15.3), making it severely overvalued. ROCE (0.12%) and ROE (0.07%) are extremely poor, reflecting inefficiency in capital utilization. EPS is negligible (₹0.59), and dividend yield is almost non-existent (0.03%). While debt-to-equity is low (0.08), profitability remains fragile with PAT declining from ₹5.61 Cr to ₹2.22 Cr. Technical indicators show weakness with price below both 50 DMA (₹353) and 200 DMA (₹414), and volumes far below weekly average, indicating reduced market interest.
💰 Ideal Entry Price Zone: ₹310 – ₹320 (closer to support levels).
📈 Exit / Holding Strategy: Suitable only for speculative trades. Long-term holding is not recommended unless fundamentals improve significantly. Exit near ₹350–₹360 if momentum recovers.
✅ Positive
- Low debt-to-equity ratio (0.08) reduces financial risk.
- Institutional confidence with FII (+0.71%) and DII (+0.06%) increases.
- Quarterly profit variation shows some recovery momentum (41.4%).
⚠️ Limitation
- Extremely high P/E (565) compared to industry average (15.3).
- Negative PEG ratio (-441) reflects poor growth relative to valuation.
- ROCE (0.12%) and ROE (0.07%) are extremely weak.
- Trading below DMA levels shows weak technical strength.
- Volumes far below weekly average, showing reduced participation.
📉 Company Negative News
- PAT declined sharply from ₹5.61 Cr to ₹2.22 Cr.
- Dividend yield negligible (0.03%), offering no income support.
- Weak trading volumes indicate poor market interest.
📈 Company Positive News
- Institutional investors marginally increased holdings.
- Quarterly profit variation shows some recovery momentum.
- Low debt levels provide financial stability.
🏭 Industry
- Industry P/E is much lower (15.3), meaning SWANCORP trades at an extreme premium.
- Sector outlook remains modest, with limited growth visibility.
🔎 Conclusion
SWANCORP is a weak candidate for long-term investment due to poor fundamentals, extreme overvaluation, and weak technical signals. Entry only near ₹310–₹320 if risk appetite is high, and exit around ₹350–₹360 to limit exposure. Best suited for speculative short-term trades rather than long-term holding.