The stock of this company surged over 8 percent on Tuesday after the company announced that it had formed a special purpose vehicle (SPV) along with Balu Forge Ltd to explore defence and nuclear capabilities.
With a market capitalisation of Rs 14,309 crores, the shares of Swan Energy Ltd are currently trading at Rs 456 per share, down by 43.7 percent from its 52-week high of Rs 809.70 per share. Over the past five years, the stock has delivered a return of 254 percent.
On Tuesday, both Swan Energy and Balu Forge, through a stock exchange filing, announced that they have formed a Special Purpose Vehicle (SPV) to tap into high-growth segments including defence, aerospace, railways, and nuclear industries. The name of the newly formed unit is Swan Balu Heavy Industries Private Limited (SBHIPL).
Swan Energy and Balu Forge hold 60 percent and 40 percent equity stakes, respectively, in SBHIPL, making it a subsidiary of Swan Energy. Accordingly, Swan Energy is entitled to 60,000 equity shares, while Balu Forge holds 40,000 equity shares.
Financial Highlights
The company reported a revenue of Rs 4,938 crores, down by 1.57 percent from its FY24 revenue of Rs 5,017 crores. Additionally, it reported a net profit growth of 49 percent to Rs 874 crore in FY25 from Rs 586 crores in FY24.
However, it is important to note that despite a negative operating profit in FY25, the company’s overall profitability surged due to a sharp rise in other income, which jumped 2,271 percent year-on-year to Rs 1,944 crore.
The stock delivered an ROE and ROCE of 11.11 percent and 14.29 percent and is currently trading at a P/E of 18.88x as compared to its industry peers of 18.16x. Swan Energy Limited operates in textiles, real estate, and energy sectors both domestically in India and internationally.
Swan Energy is involved in the manufacturing and marketing of a diverse range of fabric products, including cotton, polyester-cotton, linen and viscose fabrics. Swan Energy develops both commercial and residential property.
Swan Energy operates a 10MMTPA LNG port terminal at Jafrabad, Gujarat. Swan Energy also has operations in petrochemical trading, power generation, and warehousing services.
Written by Satyajeet Mukherjee
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