Is Swan Defence overvalued or undervalued?

Swan Defence is currently considered overvalued and risky due to troubling financial ratios, including a PE ratio of -5.27 and an ROE of -48.76%, despite its impressive stock performance compared to the Sensex.

As of 8 June 2020, Swan Defence's valuation grade has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, primarily due to its troubling financial ratios. The PE ratio stands at -5.27, while the EV to EBITDA ratio is an alarming -30.43, reflecting negative earnings and operational challenges. Additionally, the ROE is at a staggering -48.76%, suggesting that the company is not generating returns for its shareholders.<BR><BR>In comparison to its peers, Swan Defence's valuation metrics are starkly unfavorable. For instance, Mazagon Dock has a PE ratio of 56.89, while Cochin Shipyard's PE ratio is 76.08, both indicating a premium valuation in the industry. Furthermore, despite Swan Defence's recent stock performance, which has significantly outpaced the Sensex with a YTD return of 8197.36% compared to the Sensex's 5.58%, the underlying financial health raises concerns about sustainability. Overall, the combination of negative ratios and poor returns on equity leads to the conclusion that Swan Defence is overvalued in the current market environment.

Who are the top shareholders of the Swan Defence?

The top shareholder of Swan Defence is Hazel Infra Limited, holding 94.91% of the shares. Other shareholders include six foreign institutional investors with 0.02%, Vistra Itcl India Limited at 1%, and individual investors with a combined 3.25%.

The top shareholders of Swan Defence primarily include its promoters, with Hazel Infra Limited holding the largest stake at 94.91%. There are no pledged promoter holdings, and the company has no mutual fund investments. Additionally, six foreign institutional investors (FIIs) hold a total of 0.02% of the shares. The highest public shareholder is Vistra Itcl India Limited, which owns 1%. Individual investors collectively hold 3.25% of the shares.

how big is Swan Defence?

As of October 2023, Swan Defence and Heavy Industries Ltd has a market capitalization of 945.00 Cr and reported net sales of 7.03 Cr with a net profit of -181.51 Cr over the last four quarters. Shareholder's funds are 476.65 Cr, and total assets amount to 2,743.42 Cr.

Market Cap: Swan Defence and Heavy Industries Ltd has a market capitalization of 945.00 Cr and is classified as a Micro Cap.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters, which includes data from Mar'25, Dec'24, Sep'24, and Jun'24, is 7.03 Cr. The sum of Net Profit for the same period is -181.51 Cr. This data is Consolidated.<BR><BR>Balance Sheet Snapshot: This is Consolidated data for the latest annual period ending in Mar'24. Shareholder's Funds are reported at 476.65 Cr, while Total Assets amount to 2,743.42 Cr.

Who are in the management team of Swan Defence?

As of March 2019, the management team of Swan Defence includes Debashis Bir (CEO), Pankaj Pandaya (Independent Director), Venkata Rachakonda, Shiby Jobby (Directors), Avinash Godse, Rakesh Moreshar Kanzode (Company Secretaries), and Ranjit Lahiry, Vishant Shetty (Additional Independent and Compliance Officers). They oversee the company's operations and governance.

As of March 2019, the management team of Swan Defence includes the following individuals:<BR><BR>1. Debashis Bir - Whole Time Director & CEO<BR>2. Pankaj Pandaya - Independent Director<BR>3. Venkata Rachakonda - Director<BR>4. Shiby Jobby - Director<BR>5. Avinash Godse - Company Secretary<BR>6. Ranjit Lahiry - Additional Independent Director<BR>7. Rakesh Moreshar Kanzode - Company Secretary<BR>8. Vishant Shetty - Company Secretary & Compliance Officer<BR><BR>This team is responsible for overseeing the operations and governance of Swan Defence.

What does Swan Defence do?

Swan Defence and Heavy Industries Ltd operates in the Aerospace & Defense sector as a Micro Cap company, reporting net sales of 5 Cr and a net loss of 23 Cr for the quarter ending March 2025. The company, formerly known as Pipavav Shipyard, has a market cap of Rs 945 Cr and significant debt with a debt-equity ratio of 6.37.

Overview:<BR>Swan Defence and Heavy Industries Ltd operates in the Aerospace & Defense industry and is categorized as a Micro Cap company.<BR><BR>History:<BR>The company was incorporated in 1997 as 'Pipavav Ship Dismantling and Engineering Limited' and later changed its name to Pipavav Shipyard Limited in 2005. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>- Most recent Net Sales: 5 Cr (Quarterly Results - Mar 2025)<BR>- Most recent Net Profit: -23 Cr (Quarterly Results - Mar 2025)<BR>- Market-cap value: Rs 945 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: N/A (Loss Making)<BR>- Industry P/E: 194<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: 6.37<BR>- Return on Equity: -48.76%<BR>- Price to Book: 2.45<BR><BR>Contact Details:<BR>Address: Pipavav Port, Post Ucchaiya Via-Rajula Amreli Gujarat : 365560<BR>Tel: 91-2794-305000<BR>Email: rdel.investors@relianceada.com<BR>Website: http://www.rnaval.co.in

Has Swan Defence declared dividend?

No Dividend History Available

Who are the peers of the Swan Defence?

Swan Defence's peers include Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, High Energy Bat., Laxmipati Engg, C2C Advanced, Techera, and Anlon Tech. Management risk varies from excellent to below average, with Swan Defence showing below average growth and capital structure, while it boasts a significantly high 1-year return of 7803.08%.

Peers: The peers of Swan Defence are Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, High Energy Bat., Laxmipati Engg, C2C Advanced, Techera, and Anlon Tech.<BR><BR>Quality Snapshot: Excellent management risk is observed at Hind.Aeronautics, Bharat Electron, and Mazagon Dock, while Good management risk is found at Bharat Dynamics, Cochin Shipyard, and Techera. Average management risk is present at High Energy Bat., and Below Average management risk is noted at Swan Defence, Laxmipati Engg, C2C Advanced, and Anlon Tech. For Growth, Excellent growth is seen at C2C Advanced and Techera, while Good growth is noted at Bharat Dynamics and Cochin Shipyard. Below Average growth is observed at Swan Defence, Laxmipati Engg, and High Energy Bat. Lastly, Excellent capital structure is held by Hind.Aeronautics, Bharat Electron, Mazagon Dock, Bharat Dynamics, Cochin Shipyard, and Good capital structure is seen at High Energy Bat., while Below Average capital structure is noted at Swan Defence, Laxmipati Engg, C2C Advanced, and Anlon Tech.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Mazagon Dock at 111.91%, while the peer with the lowest is High Energy Bat. at -8.46%. Swan Defence's 1-year return is significantly higher at 7803.08%. Additionally, Laxmipati Engg and High Energy Bat. have negative six-month returns.

When is the next results date for Swan Defence?

The next results date for Swan Defence is 01 August 2025.

The next results date for Swan Defence is scheduled for 01 August 2025.

Are Swan Defence latest results good or bad?

Swan Defence's latest results are concerning, with a 91.45% drop in net sales and a 36.17% decrease in standalone net profit for the quarter ending June 2025, leading to a 'Sell' recommendation from MarketsMOJO due to a lack of confidence in its performance and future outlook.

Swan Defence's latest results are concerning. The company reported a significant decline in financial performance for the quarter ending June 2025, with net sales dropping by 91.45% compared to the previous quarter, and standalone net profit decreasing by 36.17%. This marks a stark contrast to the previous quarter's growth figures, which were much more favorable.<BR><BR>While there was a notable increase in non-operating income, reaching Rs 17.95 crore—the highest in five quarters—analysts warn that this boost may not be sustainable. Overall, the company's financial trajectory has led to a 'Sell' recommendation from MarketsMOJO, indicating a lack of confidence in its current performance and future outlook. Stakeholders are likely to remain cautious as they evaluate the implications of these results on Swan Defence's operations moving forward.

How has been the historical performance of Swan Defence?

Swan Defence has experienced significant financial decline, with net sales dropping from 378.56 Cr in March 2018 to 7.03 Cr in March 2025, and operating losses worsening to -107.96 Cr in March 2025. The company faces increasing liabilities and negative cash flow, indicating a challenging financial position.

Answer:<BR>The historical performance of Swan Defence shows significant fluctuations in its financial metrics over the years, particularly in net sales, operating profit, and net profit.<BR><BR>Breakdown:<BR>Swan Defence's net sales have seen a drastic decline from 378.56 Cr in March 2018 to just 7.03 Cr in March 2025, with a notable drop to 0.00 Cr in March 2024. The total operating income followed a similar trend, peaking at 378.56 Cr in March 2018 and falling to 7.03 Cr in March 2025. The company's total expenditure, excluding depreciation, has increased significantly to 114.99 Cr in March 2025 from 28.97 Cr in March 2024, contributing to an operating profit (PBDIT) of -107.96 Cr in March 2025, which is a deterioration from -26.51 Cr in March 2024. The profit before tax also worsened to -181.51 Cr in March 2025 from -121.36 Cr in March 2024, leading to a profit after tax of -181.51 Cr in March 2025. The company's total liabilities increased to 2,891.77 Cr in March 2025, while total assets were reported at 2,891.77 Cr, indicating a challenging financial position. Cash flow from operating activities remained negative at -96.00 Cr in March 2025, although the net cash inflow was positive at 10.00 Cr. Overall, Swan Defence's financial performance has shown a trend of increasing losses and declining revenues over the years.

Should I buy, sell or hold Swan Defence?

Is Swan Defence technically bullish or bearish?

As of December 2, 2025, the trend is mildly bullish due to positive weekly MACD and Bollinger Bands, but caution is advised due to a bearish monthly RSI and mixed signals from the KST.

As of 2 December 2025, the technical trend has changed from bullish to mildly bullish. The current stance is mildly bullish, driven primarily by the weekly MACD and Bollinger Bands, both indicating bullish momentum. However, the monthly RSI is bearish, which suggests some caution. The daily moving averages are bullish, supporting the overall mildly bullish outlook. The KST shows a mildly bearish trend on the weekly timeframe, contrasting with its bullish monthly signal. Overall, while there are bullish indicators, the mixed signals, particularly from the RSI and KST, indicate a cautious approach is warranted.

Why is Swan Defence falling/rising?

As of 21-Dec, the stock price of Swan Defence and Heavy Industries Ltd is stable at 1,322.65, with significant recent gains but underlying risks due to high debt and declining sales growth. Despite strong short-term performance, these factors may affect its long-term stability.

As of 21-Dec, the stock price of Swan Defence and Heavy Industries Ltd is currently stable at 1,322.65, showing no change (0.00%). However, the stock has demonstrated significant upward momentum in recent periods. Over the past week, the stock has risen by 5.00%, and in the last month, it has increased by 21.54%. Year-to-date, the stock has experienced an extraordinary rise of 58166.52%, significantly outperforming the Sensex, which has only increased by 8.69% during the same period.<BR><BR>Today's performance highlights that the stock reached a new 52-week and all-time high of Rs 1,322.65, indicating strong investor interest. It opened with a gap up of 5% and has maintained this price throughout the trading session. Additionally, it outperformed its sector by 4.98%, suggesting positive market sentiment towards the stock.<BR><BR>Despite these positive indicators, there are underlying concerns that could affect the stock's long-term performance. The company has a high debt-to-equity ratio of 10.74 times, indicating weak long-term fundamental strength. Furthermore, the company has shown poor growth in net sales, which has decreased at an annual rate of -2.05% over the last five years, and its operating profit has significantly declined by 219.75%. This high debt level and negative EBITDA position the stock as risky compared to its historical valuations.<BR><BR>Moreover, there is a notable decline in investor participation, with delivery volume falling by 73.98% against the 5-day average. This could signal a lack of confidence among investors, as domestic mutual funds hold no stake in the company, which may reflect their discomfort with the current price or business fundamentals.<BR><BR>In summary, while the stock of Swan Defence and Heavy Industries Ltd is currently rising due to strong short-term performance and significant gains over various periods, the high debt levels and declining sales growth present substantial risks that could impact its future stability.

Which are the latest news on Swan Defence?