Why is Swan Corp falling/rising?
As of 11-Sep, Swan Corp Ltd's stock price has risen to Rs 472.90, reflecting a 3.34% increase, outperforming its sector recently. However, the company faces significant long-term challenges, including weak operating profit growth and high debt levels, raising concerns about its sustainability despite short-term gains.
As of 11-Sep, Swan Corp Ltd is experiencing a price increase, currently at Rs 472.90, reflecting a rise of Rs 15.3 or 3.34%. The stock has shown strong performance recently, outperforming its sector by 2.85% today and has gained 5.75% over the last two days. In the past week, the stock has risen by 6.44%, and over the past month, it has increased by 10.16%. However, despite these short-term gains, the company has significant long-term challenges, including a weak fundamental strength indicated by a -284.34% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 28.07 times. Additionally, the company has reported a negative EBITDA and has underperformed the market over the past year with a return of -22.79%.In the broader market context, while the Sensex has only increased by 1.03% over the past week, Swan Corp's short-term performance has significantly outpaced this benchmark. The stock's recent rise can be attributed to increased investor participation, with delivery volume rising by 63.18% against the five-day average, suggesting growing interest despite the company's underlying financial issues. The high institutional holdings at 22.59% may also indicate confidence from more knowledgeable investors, although the company's flat results in June and low profitability per unit of shareholders' funds raise concerns about its sustainability in the long term.
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