The Union Cabinet on Wednesday approved changes in the production-linked incentive (PLI) scheme. In addition, it approved the second tranche of solar PV modules.
Shares of Pallonji Group company, Sterling and Wilson Renewable Energy Ltd gained 9.99% on Friday’s morning trades. The shares reached an intraday high of ₹ 362.05 apiece after closing at ₹ 329.15 apiece on Thursday. The markets are in the red, however, the company’s shares escalated by more than 21% in the past four trading sessions.
The second part of the PLI for solar PV modules aims to increase the production of low-cost solar energy and somewhere around ₹ 19,500 crores has been allocated for the second tranche of the Solar PV modules.
This scheme will make solar companies competitive in the next five years as the highest incentive will be in the first year. Brownfield companies can use the scheme for setting up new projects, after the approval.
Sterling & Wilson Renewable Energy Ltd, backed by the strong parentage of the Shapoorji Pallonji Group, is a leading end-to-end solar engineering, procurement and construction (EPC) solutions provider globally. In addition, it is also engaged in the operation and maintenance (O&M) of solar power projects.
Zee Business reported that Sanjiv Bhasin, a market expert and Director at IIFL Securities, has recommended the stock. He has given a buy call on the shares with a target price of ₹ 500. The shares were trading at ₹ 347.80 apiece at 11:35 AM on Thursday and the given target suggests an upside of 43.76%.
Written by Simran Bafna
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