Smallcap stock jumps 5% after resuming its shipyard operations
Smallcap stock jumps 5% after resuming its shipyard operations
A leading maritime engineering firm has demonstrated remarkable resilience and strategic growth in the competitive shipyard industry. Recent developments highlight the company’s operational excellence and strategic expansion capabilities.
The organisation has successfully completed a critical refit project for a Coast Guard vessel, showcasing its technical expertise and commitment to timely delivery. This achievement comes on the heels of a significant management transition.
Share Price Movement
The share price of Swan Energy Limited went up by 5.2 percent to Rs. 642 per share on Monday, an increase from its previous close of Rs. 610.95 per share. The market capitalisation now stands at approximately Rs. 20,001 crore as of December 02, 2024.
What happened
Swan Energy Limited announced the resumption of operations at its shipyard, Reliance Naval and Engineering Limited, on December 2, 2024. The shipyard successfully completed the refit of the Indian Coast Guard’s fast patrol vessel, Raj Ratan, ahead of schedule. SEL took over the facility earlier this year and plans to expand shipbuilding operations. The shipyard features India’s largest dry dock and state-of-the-art facilities for ship repair and construction.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Swan Energy’s consolidated revenue from operations has decreased by 15.6 percent YOY from Rs. 1,223 crore in Q2 FY24 to Rs. 1,032 crore in Q2 FY25 and decreased by 9.6 percent QoQ from Rs. 1,142 crore in Q4 FY24.
The company’s consolidated net profit has decreased by 56 percent, from Rs. 166 crore in Q2 FY24 to Rs. 67 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 75 percent QoQ from Rs. 268 crore.
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Market Outlook
The industry outlook covers several key sectors. In the energy sector, India’s energy demand is expected to grow by 25 billion cubic meters (BCM) to reach 1,009 BCM by 2050, registering an average annual growth of 9% until 2024. The government’s focus is on transitioning to cleaner energy sources, with LNG playing a crucial role.
The textile sector is one of the largest producers of cotton and jute globally, contributing 4% to India’s GDP, 13% to industrial production, and 12% to exports. The real estate sector is the second-highest employment generator, after the agriculture sector. The shipbuilding sector is undergoing reforms to enhance domestic capabilities and increase employment opportunities.
Shareholding Pattern
As of the November 2024 shareholding pattern, Swan Energy Limited is primarily held by the promoters at 53.96 percent, foreign institutional investors hold 11.79 percent, and the public with 20.58 percent.
About Company
Founded in 1909 as Swan Mills Ltd., Swan Energy Limited (SEL) has transformed from a textile manufacturer into a diversified player in real estate and energy. Originally focused on cotton and polyester products, the company has adapted to changing market trends. Today, it is a key player in developing an LNG import terminal in Gujarat.
With headquarters in Mumbai, SEL operates across various sectors, including energy, real estate, and textiles. In the energy sector, it has seen significant growth, with a revenue of ₹632.05 crores in FY 2024 from LNG terminals and power generation. In contrast, the textile segment has experienced a decline in revenue, contributing ₹215.71 Crores. Additionally, SEL is involved in warehousing and construction.
In conclusion, Swan Energy Limited has successfully navigated industry shifts, emerging as a major force in India’s energy sector. Despite reduced textile revenue, it remains a resilient and adaptable company.
Written By Fazal Ul Vahab C H
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