Why is Swan Corp falling/rising?

Sep 24 2025 09:08 PM IST
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As of 24-Sep, Swan Corp Ltd's stock price is 487.80, up 1.17%, but it faces significant long-term challenges, including a -284.34% CAGR in operating profits over five years and a high Debt to EBITDA ratio of 28.07. Despite short-term gains, the company has underperformed the broader market over the past year, raising concerns about its financial health.
As of 24-Sep, Swan Corp Ltd is experiencing a price increase, currently at 487.80, reflecting a change of 5.65 or 1.17% upward. The stock has outperformed its sector today by 1.6%, reaching an intraday high of Rs 492, which is a 2.04% increase. Over the past week, the stock has shown a return of +5.22%, while its performance over the last month is +2.58%. However, despite this short-term positive movement, the company has significant long-term challenges, including a -284.34% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 28.07 times, indicating a low ability to service its debt. Additionally, the recent financial results have been disappointing, with a substantial drop in both profit before tax and profit after tax, which raises concerns about the company's profitability and financial health.

Broader market context indicates that while Swan Corp has shown some resilience in the short term, it has underperformed the broader market over the past year, with a return of -16.18% compared to the Sensex's decline of only -3.77%. This underperformance is compounded by a significant drop in investor participation, with delivery volume falling by 47.18% against the five-day average. Despite high institutional holdings at 22.59%, which typically suggests a level of confidence from more knowledgeable investors, the overall market sentiment remains cautious due to the company's weak long-term fundamentals and negative EBITDA, making it a risky investment.
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