Shares of Swan Energy appreciated to the tune of 11 percent on Thursday’s early trades to reach a fresh intraday high of ₹ 273.00 apiece, following an update about a meeting of its board of directors. At 01:39 PM, its shares were trading at ₹ 267.55 apiece up 8.58 per cent.
Swan Energy is a manufacturer and marketer of cotton and polyester textile products in India. Over the years, it has diversified into Real estate and is developing a floating storage and regasification units-based liquid natural gas (LNG) import terminal at Jafrabad in Gujarat.
In an exchange filing, the company said that a meeting of its board of directors will be held on Tuesday, June 27, 2023, to consider and evaluate the proposal for raising funds.
With a market capitalization of ₹ 6,503 crores, Swan Energy is a small-cap company. It has a negative return on equity of 1.89 per cent and a high debt-to-equity ratio of 2.25. Its shares were trading at a price-to-earnings ratio (P/E) of 425.62, which is significantly higher than the industry P/E of 26.77, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 64.09 per cent stake in it followed by foreign institutions with 17.14 per cent, retail investors with 15.85 per cent, domestic institutions with 2.89 per cent and mutual funds with 0.03 per cent.
Swan Energy’s net loss narrowed to ₹ 66.47 crores in FY23 from 157.78 crores in FY22. Its revenue from operations grew by a whopping 195 per cent to ₹ 1,438.14 crores in FY 23 against ₹ 487.20 crores in FY22.
Written By Simran Bafna
