Swan Corp (SWANCORP)

FairStock Score: 4/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Swan Corp as a petrochemicals business priced at ₹304.60, market cap ₹9,548 Cr, against book value ₹224.96. That is 1.35x book, not demanding, but the earnings tell a harsher story. ROE is -0.17% and ROCE -1.44%; latest quarter sales were ₹1,150 Cr but net profit was ₹-1 Cr. Sales growth is -16.40% and profit growth -101.69%, so the reported P/E of 43.27 is not a margin of safety—it reflects a shrinking or barely profitable base. The five-year revenue CAGR of 70.67% is impressive, but a Graham-style investor must ask whether that growth was durable or merely cyclical. Current numbers suggest petrochemical cyclicality and poor profitability. The balance sheet offers some comfort: debt/equity is only 0.25 and free cash flow is ₹817 Cr. Promoter holding is 53.96%, so skin in the game is meaningful. Yet Altman Z-score of 1.40 and Piotroski F-score 2/9 point to financial fragility. EV/EBITDA is 707.13, DCF intrinsic value is ₹-0.39, and FairStock score is 4/100 RISKY. A 0.05% dividend yield gives little income support. At 1.35x book, an asset-based buyer might be tempted, but negative ROE/ROCE means book value is not currently compounding. I would classify this as a cyclical turnaround candidate, not a steady compounder. I need evidence of sustained positive profits and improving ROCE before paying a premium to book. Until then, I'll watch from the sidelines.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer