Why is Swan Energy falling/rising?

Sep 05 2025 09:02 PM IST
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As of 05-Sep, Swan Energy Ltd's stock price is rising at 455.15, reflecting a short-term positive trend despite a concerning long-term outlook with significant declines in operating profits and high debt levels. The stock has outperformed its sector recently but has underperformed the market over the past year, indicating volatility and associated risks.
As of 05-Sep, Swan Energy Ltd's stock price is rising, currently at 455.15, reflecting an increase of 10.85 or 2.44%. The stock has outperformed its sector today by 2.42%, opening with a gain of 2.39% and reaching an intraday high of Rs 458.75. Over the past week, the stock has shown a return of +2.38%, and +5.63% over the last month, indicating a positive short-term trend. However, despite this recent uptick, the company has a concerning long-term outlook, with a -284.34% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 28.07 times, which raises questions about its ability to service debt. Additionally, the company has reported weak financial results, including a significant drop in profit before tax and net profit, which could be affecting investor sentiment.

In the broader market context, while the Sensex has gained +1.13% over the past week, Swan Energy's performance has been notably stronger in the short term. However, it is essential to note that the stock has underperformed the market over the last year, with a return of -29.54% compared to the market's -1.81%. This discrepancy highlights the stock's volatility and the risks associated with its weak long-term fundamentals, despite the recent positive movement. The high institutional holdings at 22.59% suggest that more knowledgeable investors are backing the stock, but the overall weak financial indicators and declining investor participation could temper enthusiasm moving forward.
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