Why is Swan Energy falling/rising?
As of 17-Jul, Swan Energy Ltd. is facing a stock price decline to Rs 506.75, down 2.87%, with a concerning long-term performance of -29.67% over the past year despite a recent short-term gain of 19.78%. The company struggles with weak fundamentals and high debt, leading to a perception of it being a strong sell.
As of 17-Jul, Swan Energy Ltd. is experiencing a decline in its stock price, currently at Rs 506.75, which reflects a decrease of Rs 15.0 or 2.87%. The stock has underperformed its sector by 3.15% today and has seen a trend reversal after two consecutive days of gains. It touched an intraday low of Rs 505.2, indicating a drop of 3.17%. Over the past week, the stock has shown a positive return of 8.43%, but it has significantly underperformed over the last year with a return of -29.67%. The company has high institutional holdings at 23.5%, but it also faces challenges such as a weak long-term fundamental strength, evidenced by a -250.37% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 28.07 times.In the broader market context, while the Sensex has generated a return of 0.83% over the past month, Swan Energy's return of 19.78% in the same period indicates a strong short-term performance relative to the benchmark. However, the stock's long-term performance has been concerning, with a significant decline of -29.62% year-to-date compared to the Sensex's gain of 5.27%. The company's recent flat results and negative EBITDA further contribute to its risk profile, leading to a perception of it being a strong sell despite the recent increase in investor participation and liquidity.
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