SWANENERGY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.9

📊 Core Financials Analysis

Profitability & Growth

Sharp decline in quarterly PAT from ₹562 Cr. to a loss of ₹16.9 Cr. (QoQ drop of 163%) raises concerns about earnings volatility.

ROCE at 14.3% and ROE at 11.1% are modest — not poor, but below top-tier benchmarks.

EPS of ₹24.1 is decent, but inconsistent earnings make it unreliable for valuation.

Debt & Liquidity

Debt-to-equity ratio of 0.38 is manageable, though higher than peers in the energy space.

Dividend yield is negligible at 0.02%, indicating limited shareholder payouts.

Cash Flow

Lack of consistent profitability suggests cash flows may be erratic or under pressure.

📉 Valuation Metrics

Metric Value Remarks

P/E Ratio 20.0 Fairly valued vs. industry PE of 20.2

P/B Ratio ~2.06 Reasonable given book value of ₹234

PEG Ratio 0.22 Attractive, but distorted by volatile earnings

Intrinsic Value Unclear Due to inconsistent profit trajectory

Valuation appears reasonable, but the recent earnings collapse undermines confidence in growth metrics.

⚙️ Business Model & Competitive Edge

Swan Energy operates in energy infrastructure, including LNG terminals and real estate — a hybrid model that lacks clarity and focus.

Competitive advantage is limited due to fragmented operations and inconsistent financial performance.

The company has potential in LNG infrastructure, but execution risk remains high.

📌 Entry Zone & Investment Guidance

Entry Zone: ₹400–₹440 range — below 50 DMA and closer to recent low of ₹362, offering a margin of safety.

Current Price: ₹482 — near 50 DMA, but below 200 DMA, suggesting neutral momentum.

Long-Term View

Cautious stance recommended — wait for stabilization in earnings before considering long-term holding.

Not ideal for conservative investors; suitable only for high-risk, speculative positioning.

Would you like a breakdown of Swan Energy’s LNG business prospects or a comparison with Adani Total Gas or Petronet LNG?

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