SWANENERGY - Investment Analysis

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

Investment Rating: 3.6

📊 Fundamental & Valuation Analysis

Swan Energy Ltd presents a mixed investment case with strong long-term potential but short-term volatility

P/E Ratio: 20.0 — fair valuation compared to industry PE of 20.2

PEG Ratio: 0.22 — attractive for growth investors

ROE / ROCE: 11.1% / 14.3% — moderate efficiency, not industry-leading

Debt to Equity: 0.38 — manageable leverage

Dividend Yield: 0.02% — negligible, not suitable for income investors

Book Value: ₹234 vs Current Price ₹482 — Price to Book ~2.06, reasonable

However, the quarterly profit dropped drastically from ₹562 Cr to a loss of ₹16.9 Cr, raising concerns about earnings consistency.

📉 Technical & Trend Analysis

Current Price: ₹482

DMA 50 / DMA 200: ₹463 / ₹496 — trading near key averages

RSI: 53.1 — neutral zone

MACD: 11.9 — bullish momentum

Volume: Below 1-week average — declining interest

The stock has corrected ~40% from its 52-week high of ₹810, suggesting potential value but not yet a confirmed reversal.

✅ Ideal Entry Price Zone

Based on technical and valuation indicators, the ideal entry zone is

₹440–₹470 range

This aligns with support near the 200 DMA and recent consolidation levels

Wait for RSI to dip below 45 and MACD to flatten for a safer entry

📈 Long-Term Holding Strategy

If you already hold the stock

Holding Period: 3–5 years, considering its LNG infrastructure and textile diversification

Exit Strategy

Partial exit near ₹620–₹650 if valuation stretches or RSI > 75

Full exit if ROE/ROCE deteriorates below 10% or PAT remains negative for 2+ quarters

Reassess if quarterly volatility continues or debt levels rise

Long-term forecasts suggest potential upside to ₹870 by 2026 and ₹1,200+ by 2028

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🔍 Summary

Metric Value Verdict

ROE / ROCE 11.1% / 14.3% Moderate

PEG Ratio 0.22 Undervalued

Dividend Yield 0.02% Negligible

Debt to Equity 0.38 Acceptable

RSI / MACD 53.1 / 11.9 Neutral / Bullish

PAT Trend -163% QoQ Concerning

Swan Energy is a mid-cap turnaround candidate, ideal for patient investors who believe in its LNG and infrastructure story. Not a buy for conservative or income-focused portfolios.

Would you like me to compare Swan Energy with peers like Trident or Welspun to see how it stacks up in textiles and energy?

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dailybulls.in

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stockpricearchive.com

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