Check Before You Invest : Swan Defence and Heavy Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Swan Defence and Heavy Industries Ltd belong to?

Swan Defence and Heavy Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ship Building segment.

Q.2 Is Swan Defence and Heavy Industries Ltd a good quality company?

Swan Defence and Heavy Industries Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Swan Defence and Heavy Industries Ltd undervalued or overvalued?

Swan Defence and Heavy Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Swan Defence and Heavy Industries Ltd a good buy now?

Swan Defence and Heavy Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -37.8%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Return on capital employed is -6.02% for FY-2025, which is in line with its 5-year historical median of -6.02%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Return on Asset is -6.45%, which is in line with its 5-year historical median of -6.45%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Return on equity is -50.75% for FY-2025, which is below its 5-year historical median of -36.54%, indicating the business is making worse use of its shareholders capital.

Q.5 Gross Profit margin of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -1682.9% for FY-2025, which is below its 5-year median of -715.9%, indicating decreasing margins.

Q.6 Operating Profit Margin of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1534.69% for FY-2025, which is below its 5-year median of -420.53% indicating decreasing margins.

Q.7 Net Profit Margin of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Net Profit Margin is -2580% for FY-2025, is in line with with its 5-year median of -2580%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-1682.9	-715.9
Operating Profit Margin	-1534.69	-420.53
Net Profit Margin	-2580	-2580

Q.8 Debt to Equity ratio of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Debt-to-Equity ratio is 8.33, which is above with the industry average of 2.12, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Swan Defence and Heavy Industries Ltd?

Swan Defence and Heavy Industries Ltd Debt to cash flow from operations is -25.12, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Swan Defence and Heavy Industries Ltd?

Promoters hold 89.90% of the Swan Defence and Heavy Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Swan Defence and Heavy Industries Ltd vs industry peers?

Swan Defence and Heavy Industries Ltd revenue CAGR is -37.80%, compared to the industry median CAGR of 19.16%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	19.2
Gross Profit Growth	0	40.4
Operating Profit Growth	0	42.1
Net Profit Growth	0	41.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	-	0.82
ROE	-50.75	4.12
ROCE	-6.02	7.58
Cash Conversion Cycle (days)	72668.38	76

Valuation & price assessment

Q.1 Stock return of Swan Defence and Heavy Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 39.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	39.5%	263.5%	854.2%	1221.3%

Q.3 Valuation ratios of Swan Defence and Heavy Industries Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-3.84	32.41
Price to Book	47.04	-0.01	6.51
Price to Sales	191.76	28.41	4.99
EV to EBITDA	-362.35	-317.34	12.82

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