Why is Swan Energy falling/rising?
As of 02-Sep, Swan Energy Ltd. is currently priced at Rs 458.00, reflecting a recent upward trend despite a significant year-to-date decline of -36.39%. While it has shown short-term gains, its long-term performance remains concerning due to weak fundamentals and high debt levels.
As of 02-Sep, Swan Energy Ltd. is experiencing a price increase, currently at Rs 458.00, reflecting a change of 3.65 (0.8%) upward. The stock has been gaining for the last two days, with a total return of 3.03% during this period. It has also outperformed the benchmark Sensex over the past week and month, with returns of +0.89% and +3.37%, respectively. However, the stock has a concerning long-term performance, with a year-to-date decline of -36.39% and a one-year return of -30.84%. The company has high institutional holdings at 22.59%, which may provide some stability, but it also faces significant challenges, including a weak long-term fundamental strength characterized 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.In the broader market context, while the Sensex has shown a slight decline of -0.78% over the past week and -0.55% over the past month, Swan Energy's recent performance indicates a positive divergence from these trends. Despite the stock's short-term gains, it has underperformed the market significantly over the past year, where the BSE500 index recorded a negative return of -4.82%. This underperformance, combined with flat quarterly results and a negative EBITDA, suggests that while the stock may be experiencing a temporary rise, the overall outlook remains risky and uncertain.
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