Swan Corp Limited

Industrials — Conglomerates · NSE

₹264.05+₹0.15 (+0.06%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of Swan Corp Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Swan Corp Limited manufactures and markets cotton, polyester cotton, linen and viscose fabrics, and non-lycra products in India and internationally.

IndustryConglomerates

SectorIndustrials

Employees158

Annual revenue₹4,334 Cr

How does it make money?

Turns over ₹4,334 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹-2 left at the operating level before interest, tax and depreciation. Each of its 158 employees supports ₹27.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹27.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +209% while net margin moved -347% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+209%

Margin effect-347%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.0% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of -1.6% is thin — little cushion if costs rise
✗ Net margin of 5.4% is slim
• Revenue has compounded at 45.6% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.9x

2Y Median

32.4x

28 monthly readings · mean 30.3x · range 10.8x–64.1x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 20% above its 2y median of 32.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 56% below the peer median of 88.8x.

vs. its own history

Expensive

32.4x median over 28 months · +20%

vs. sector peers

Cheap

88.8x median of 3 peers · -56%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 55% over 3 years.
Return on equity is rising
ROE has improved from -1.6% to 3.6%.
Return on capital is rising
ROCE has improved from 2.0% to 4.0%.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.4 points, from 16.8% to -1.6%.
🔴Inventory building faster than salesFinancial
Inventory up 366% against revenue up 209% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.7x to 5.6x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 55% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.8% to -1.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 20% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 34% a year✓ 45.6% CAGR
Latest reported year was -16.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -4%✓ -1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹224 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹8,277 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.10x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.79

Profitable

Profitable on a per-share basis

ROE

3.6%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

-16.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-63.7%

Falling

Profits are shrinking

Dividend Yield

0.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹224 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-3.4%

Weak

Thin margins leave little room for error

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

279.0 / 290.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,404 Cr	₹4,982 Cr	₹4,902 Cr	₹4,334 Cr	+45.6%
EBITDA	₹236 Cr	₹943 Cr	-₹36 Cr	-₹69 Cr	—
EBITDA Margin	16.8%	18.9%	-0.7%	-1.6%	—
PAT (Net Profit)	-₹36 Cr	₹301 Cr	₹755 Cr	₹274 Cr	—
EPS	₹-2.52	₹11.23	₹27.9	₹8.65	—
ROE	-1.6%	4.8%	10.3%	3.6%	—
ROCE	2.0%	7.7%	15.0%	4.0%	—
Total Debt	₹5,037 Cr	₹3,521 Cr	₹2,966 Cr	₹2,258 Cr	-23.5%
Free Cash Flow	-₹3,168 Cr	-₹422 Cr	-₹2,108 Cr	-₹224 Cr	—

🟢 Revenue has grown at 45.6% a year over 3 years.

🔴 EBITDA has turned negative, from ₹236 Cr to -₹69 Cr.

🔴 EBITDA Margin has fallen from 16.8% to -1.6% over 3 years (-18.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹36 Cr to ₹274 Cr.

🟢 EPS has turned positive, from ₹-2.52 to ₹8.65.

🟢 ROE has risen from -1.6% to 3.6% over 3 years (+5.2 pts).

🟢 ROCE has risen from 2.0% to 4.0% over 3 years (+2.1 pts).

🟢 Total Debt has shrunk at 23.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,853 Cr

Total Liabilities

₹4,658 Cr

Cash & Equivalents

₹665 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹210 Cr

Shareholding (proxy)

Institutional Holding

18.4%

Insider Holding

55.6%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

28 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed3 negative2 general

SWAN CORP Share Price Outlook: Where It Could Be in 3 Years

Univest, 03 Aug

Swan Corp promoter pledges 15 lakh shares for ₹1,150 crore facility

scanx.trade, 16 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Swan Corp, Aegis Vopak, Allied Blenders shares surge over 7% amid spike in volumes; check full list

Upstox, 06 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Swan Corp Limited's (NSE:SWANCORP) Business Is Yet to Catch Up With Its Share Price

Simply Wall Street, 16 Dec

Swan Corp reports ₹31 crore loss in Q1 as revenues fall

BusinessLine, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Swan Corp - 9 stocks with rising promoter pledges in March '26

The Economic Times, 28 AprOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

Revenue growth is negative (-16.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation · Risk

WeakBusiness Quality

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑