Sterling & Wilson Share Price Hits 5% Upper Circuit After Strong Q2 Results

Shares of Sterling & Wilson Renewable Energy Ltd. were locked in a 5% upper circuit on Tuesday after it swung into profit in the second quarter of fiscal 2025. The solar EPC contractor released its earnings for the September 2024 quarter on Monday. The company posted Rs 8.57 crore profit in Q2, compared to a loss of Rs 1.47 crore in the year-ago period.

Opening higher at Rs 564.85 apiece on the NSE, shares of Sterling & Wilson Renewable Energy Ltd. gained sharply to an intraday high of Rs 582.55. In contrast, the benchmark Nifty was down 0.26% at around 12:30 p.m.

Sterling & Wilson Renewable Energy Ltd.’s revenue jumped 35.7% year-on-year to Rs 1,030.49 crore in the July-September period from Rs 759.52 crore in the corresponding period of the previous fiscal.

Its operating income or earnings before interest tax, depreciation and amortisation rose Rs 18.15 crore, while Ebitda margins widened to 1.8% from 0.2% a year ago.

The company's profit after tax for the half year ended Sept. 30, 2024, rose to Rs 13.4 crore from a loss of Rs 149.83 crore in H1 FY24.

Sterling & Wilson Renewable Energy Ltd. received orders worth Rs 2,050 crore during the September 2024 quarter. It secured two solar Engineering, Procurement and Construction orders from private independent power producers worth Rs 512 crore.

This included a 250 MWp DC project in Gujarat and LOA for a 65 MWp DC project in Maharashtra.

The company's promoters Sterling and Wilson Renewables Energy, Shapoorji Pallonji and Co. and Khurshed Yazdi Daruvala, offloaded 7.13% stake for Rs 1,040 crore through open market transactions in September.

Sterling & Wilson Renewable Energy's shares have gained nearly 88% on the NSE in a year. The renewable energy company's shares have given year-to-date returns of over 32%. In six months the stock has climbed over 8% and in a month the stock has declined over 19%.

According to Bloomberg data, all five analysts tracking the company have maintained a 'buy' rating. The average 12-month analyst's consensus price target implies an upside of over 50%.