Swan Energy stock hits 3-month high with 15% jump, zooms 53% in 6 weeks | Stock Market News

Shares of Swan Energy surged by 15.40 per cent in today’s intraday trade on December 4, hitting a three-month high of ₹728.70 apiece, before closing the session with a 12.34 per cent gain at ₹709 apiece. This rally propelled the stock to a 53 per cent gain in just six weeks.

The company’s shares have been buzzing on Dalal Street recently following its announcement that it had resumed operations at its shipyard, formerly known as Reliance Naval and Engineering, which it acquired earlier this year, according to a filing made on Monday to the stock exchanges. 

Swan’s shipyard has initiated the refit of ships, with the Indian Coast Guard’s (ICG) fast patrol vessel, Raj Ratan, being the first repair project. The refit, which began on September 4, 2024, was completed ahead of schedule, on November 30, 2024. The project was carried out in collaboration with Sadhav Offshore Engineering Pvt Ltd.

As part of the comprehensive refit of the ICG vessel, Swan’s shipyard provided end-to-end services, including berthing and dry-docking, as well as critical yard services essential for the vessel’s overhaul. Swan’s shipyard is also preparing to begin shipbuilding operations at the facility.

Swan’s Shipyard boasts the largest dry dock in India and one of the largest in the world, measuring 662 meters by 65 meters.

Vivek Merchant, Director of Swan’s Shipyard, said, “The resumption of operations at our shipyard marks the successful culmination of our dedicated efforts to rejuvenate this strategic facility. Delivering our first Indian Coast Guard vessel underscores our commitment to enhancing India’s ship repair and shipbuilding capabilities. Our vision is to establish our shipyard as a leading maritime hub for the manufacturing of defence and commercial ships and for the heavy engineering sector on a global scale.”

Reliance Naval was the first private sector company in India to obtain a license to build warships. It has India’s largest integrated shipbuilding facility with a 662 m x 65 m drydock.

This business segment is experiencing significant opportunities in defence and commercial shipbuilding, ship repair and upgrades, oil and gas rig repair, and heavy engineering, boasting the world’s second-longest dockyard, as per the analysts.

In recent years, Swan Energy has diversified into oil and gas, petrochemicals, defence and shipyards while maintaining active engagements in the textile and real estate sectors.

Wealth Creator

The company’s shares, valued at ₹120 apiece in November 2021, have surged by 492 per cent to reach the current price of ₹709 per share. In terms of yearly performance, the stock has consistently delivered positive returns over the last five years.

In CY19, it surged 7 per cent, followed by gains of 24.59 per cent and 9 per cent in CY20 and CY21, respectively. CY22 witnessed a remarkable multi-bagger return of 110 per cent, while CY23 concluded with another stellar performance, yielding a return of 67 per cent.

As for the current year, it has seen an increase of 39 per cent thus far. In March, the stock reached an all-time high of ₹772 per share.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.