The shares of this smallcap company locked 5 percent upper circuit after receiving the country’s largest battery energy storage project worth Rs. 328 crores. The stock has delivered more than 80 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 16,087 crores, the shares of Sterling & Wilson Renewable Energy Ltd started Friday’s trading session on a higher note at Rs. 659.95 compared to its previous close of Rs. 656.35. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 689.15 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it received a prestigious order for the Engineering, Design, Procurement, Erection, Testing and Commissioning of 500 x 2 (1,000 MWhr) – Standalone BESS plant in Rajasthan, India.
Furthermore, the company stated that this project is India’s largest Battery Energy Storage System (BESS) initiative to date, and one of the few GWhr-scale projects globally to be executed at a single location, with completion expected by 2025.
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As of March 2024, India’s total installed Battery Energy Storage System (BESS) capacity is only around 219 MWh.
According to the National Electricity Plan (NEP) 2023 by the Central Electricity Authority (CEA), the energy storage capacity needed by 2026-27 is projected to be 82.37 GWh (47.65 GWh from Pumped Storage Projects and 34.72 GWh from BESS).
The company also highlighted that with this order, it is poised to secure a leading role in India’s rapidly expanding BESS market.
Additionally, the company also secured a 20 MW Floating Solar project in Karnataka from the same client, which marks the third such floating solar project the company is currently executing in the country. The total order value for both projects including O&M and taxes is approximately Rs. 328 crore.
Financials:
Looking at the company’s financial performance, the revenue decreased by 22 percent from Rs. 1,178.01 crores during the March quarter to Rs. 915.06 crores in the June quarter. On the other hand, the net profits magnified by 245 percent from Rs. 1.40 crores to Rs. 4.83 crores during the same period.
Order Book:
In Q1 FY25, Sterling & Wilson Renewable Energy secured new orders and Letters of Intent (LOIs) amounting to Rs. 2,170 crores. Of this total, Rs. 1,016 crores were domestic orders, while Rs. 1,154 crores came from international markets.
As of June 2024, the company’s unexecuted order value stands at Rs. 9,396 crores, up from Rs. 8,084 crores in March 2024. Additionally, the company boasts a robust project pipeline of 23 gigawatts in India and 5 gigawatts in other regions.
Company Profile:
Sterling and Wilson Solar Ltd is one of the leading end-to-end solar engineering, procurement and construction (EPC) solutions providers globally and is also engaged in the operation and maintenance (O&M) of solar power projects. The company is backed by the strong parentage of Reliance Industries.
Written By Vaibhav Patil
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