Fundamental Analysis of Sterling & Wilson Renewable Energy Ltd

Share Price and Basic Stock Data

Last Updated: September 6, 2024, 11:04 pm

Market Cap	16,458 Cr.
Current Price	705
High / Low	828/253
Stock P/E
Book Value	41.6
Dividend Yield	0.00 %
ROCE	3.77 %
ROE	56.7 %
Face Value	1.00
PEG Ratio	0.00

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

Competitors of Sterling & Wilson Renewable Energy Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
GTV Engineering Ltd	134 Cr.	428	640/290	21.1	116	0.00 %	15.4 %	16.1 %	10.0
Galaxy Agrico Exports Ltd	13.7 Cr.	50.3	59.9/21.6		15.1	0.00 %	11.0 %	12.8 %	10.0
GG Engineering Ltd	309 Cr.	1.95	2.97/1.14	67.5	1.41	0.00 %	5.90 %	3.98 %	1.00
GG Automotive Gears Ltd	124 Cr.	148	180/63.0	25.5	35.1	0.00 %	14.9 %	16.8 %	10.0
Forbes & Company Ltd	858 Cr.	665	796/241	38.0	109	0.00 %	3.89 %	9.62 %	10.0
Industry Average	4,430.09 Cr	653.79		53.29	109.84	0.26%	29.15%	18.97%	6.68

Quarterly Result

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Sales	1,364.54	1,194.63	1,438.42	1,494.86	1,071.03	1,206.93	312.69	406.96	88.43	514.96	759.52	582.88	1,178.01
Expenses	1,788.85	1,298.34	1,732.87	1,885.94	1,195.27	1,550.80	682.88	470.77	440.55	552.17	758.05	599.06	1,148.66
Operating Profit	-424.31	-103.71	-294.45	-391.08	-124.24	-343.87	-370.19	-63.81	-352.12	-37.21	1.47	-16.18	29.35
OPM %	-31.10%	-8.68%	-20.47%	-26.16%	-11.60%	-28.49%	-118.39%	-15.68%	-398.19%	-7.23%	0.19%	-2.78%	2.49%
Other Income	51.79	32.57	31.32	7.37	23.44	4.13	98.11	10.69	-2.07	7.39	17.21	27.43	33.39
Interest	22.93	12.52	17.11	28.25	18.83	14.66	32.84	37.91	59.50	62.09	64.34	67.55	24.54
Depreciation	5.01	3.08	3.28	4.49	3.82	3.46	3.30	4.11	3.83	3.42	4.29	4.49	4.46
Profit before tax	-400.46	-86.74	-283.52	-416.45	-123.45	-357.86	-308.22	-95.14	-417.52	-95.33	-49.95	-60.79	33.74
Tax %	13.90%	12.36%	-0.29%	-2.96%	-2.56%	0.52%	3.09%	-4.21%	-0.86%	0.01%	-9.13%	-2.63%	95.85%
Net Profit	-344.80	-76.02	-284.35	-428.78	-126.61	-355.99	-298.71	-99.15	-421.11	-95.32	-54.51	-62.39	1.40
EPS in Rs	-21.63	-4.75	-17.75	-22.27	-6.66	-18.66	-15.65	-5.34	-22.01	-5.03	-2.86	-2.73	0.06

Last Updated: August 10, 2024, 2:58 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: August 24, 2024, 11:51 am

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	6,872	8,240	5,575	5,081	5,199	2,015	3,035	3,435
Expenses	6,330	7,582	5,246	5,458	6,102	3,139	3,058	3,396
Operating Profit	542	658	329	-377	-903	-1,124	-23	39
OPM %	8%	8%	6%	-7%	-17%	-56%	-1%	1%
Other Income	13	209	303	158	95	111	85	91
Interest	23	100	220	105	87	151	219	175
Depreciation	3	8	14	17	15	15	17	17
Profit before tax	529	759	398	-340	-910	-1,179	-172	-62
Tax %	15%	16%	24%	-15%	1%	-0%	22%
Net Profit	451	638	304	-290	-916	-1,175	-211	-111
EPS in Rs	281.98	39.85	19.34	-17.80	-47.94	-61.65	-9.09	-5.35
Dividend Payout %	0%	0%	31%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	41.46%	-52.35%	-195.39%	-215.86%	-28.28%	82.04%
Change in YoY Net Profit Growth (%)	0.00%	-93.81%	-143.04%	-20.47%	187.59%	110.32%

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	-18%
3 Years:	-16%
TTM:	160%

Compounded Profit Growth
10 Years:	%
5 Years:	%
3 Years:	8%
TTM:	88%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	32%
1 Year:	67%

Return on Equity
10 Years:	%
5 Years:	-68%
3 Years:	-152%
Last Year:	-57%

Last Updated: August 3, 2024, 5:22 pm

Balance Sheet

Last Updated: August 10, 2024, 2:58 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Equity Capital	16	16	16	16	19	19	23
Reserves	181	825	1,065	646	898	-244	946
Borrowings	184	2,228	1,234	479	446	2,030	516
Other Liabilities	4,540	2,323	2,719	2,568	2,137	1,386	2,816
Total Liabilities	4,920	5,392	5,034	3,709	3,500	3,190	4,301
Fixed Assets	21	31	45	46	42	44	56
CWIP	3	0	4	0	0	0	0
Investments	0	0	0	0	0	0	0
Other Assets	4,896	5,360	4,985	3,663	3,457	3,146	4,244
Total Assets	4,920	5,392	5,034	3,709	3,500	3,190	4,301

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	251	-723	338	201	-1,690	-1,829	538
Cash from Investing Activity	-15	-924	1,018	409	949	-12	-5
Cash from Financing Activity	-141	1,972	-1,313	-853	978	1,431	-286
Net Cash Flow	95	325	43	-243	238	-410	248

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	358.00	656.00	328.00	-856.00	-1,349.00	-3.00	-539.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	97	84	133	61	55	143	100
Inventory Days	1						0
Days Payable	253						283
Cash Conversion Cycle	-155	84	133	61	55	143	-183
Working Capital Days	13	113	113	47	48	271	117
ROCE %		50%	23%	-14%	-66%	-65%	3%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Promoters	69.36%	69.36%	69.36%	74.10%	78.56%	78.56%	76.69%	72.73%	72.73%	69.03%	67.56%	52.99%
FIIs	6.58%	6.10%	8.56%	6.76%	2.33%	2.05%	2.65%	3.53%	4.13%	4.26%	3.37%	11.91%
DIIs	4.40%	4.19%	3.62%	3.00%	3.17%	3.38%	3.90%	4.74%	5.55%	5.57%	5.94%	9.75%
Public	19.66%	20.35%	18.46%	16.14%	15.94%	16.00%	16.76%	19.01%	17.61%	21.14%	23.14%	25.34%
No. of Shareholders	43,209	71,206	65,779	1,41,716	1,56,594	1,63,804	1,62,383	1,58,002	1,54,150	1,53,128	1,58,649	1,48,994

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Focused Equity Fund	2,921,256	2.13	165.55	600,000	2024-09-05	386.88%
HDFC Large and Mid Cap Fund - Regular Plan	1,675,000	0.59	94.92	600,000	2024-09-05	179.17%
Nippon India Power & Infra Fund	1,400,000	2.04	79.34	600,000	2024-09-05	133.33%
Nippon India Value Fund	1,352,737	1.1	76.66	600,000	2024-09-05	125.46%
Bandhan Sterling Value Fund	1,000,000	0.69	56.67	600,000	2024-09-05	66.67%
Sundaram Small Cap Fund	815,770	1.51	46.23	600,000	2024-09-05	35.96%
Nippon India Retirement Fund - Wealth Creation Scheme	600,000	1.17	34	600,000	2024-09-05	0%
Bandhan Multi Cap Fund	500,000	1.5	28.34	600,000	2024-09-05	-16.67%
JM Flexicap Fund	481,000	1.9	27.26	600,000	2024-09-05	-19.83%
HSBC Infrastructure Fund	386,000	0.99	21.87	600,000	2024-09-05	-35.67%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	-10.40	-61.65	-54.21	-17.80	19.33
Diluted EPS (Rs.)	-10.39	-61.65	-54.21	-17.80	19.33
Cash EPS (Rs.)	-8.32	-61.16	-47.50	-17.05	19.86
Book Value[Excl.RevalReserv]/Share (Rs.)	40.95	-12.67	47.75	41.01	66.87
Book Value[Incl.RevalReserv]/Share (Rs.)	40.95	-12.67	47.75	41.01	66.87
Revenue From Operations / Share (Rs.)	130.16	106.22	274.06	316.76	347.59
PBDIT / Share (Rs.)	2.70	-53.72	-43.16	-14.37	37.88
PBIT / Share (Rs.)	1.98	-54.50	-43.94	-15.40	37.00
PBT / Share (Rs.)	-7.39	-62.14	-47.98	-21.20	24.84
Net Profit / Share (Rs.)	-9.04	-61.94	-48.27	-18.08	18.97
NP After MI And SOA / Share (Rs.)	-9.09	-61.65	-47.94	-17.79	19.33
PBDIT Margin (%)	2.07	-50.57	-15.74	-4.53	10.89
PBIT Margin (%)	1.52	-51.30	-16.03	-4.86	10.64
PBT Margin (%)	-5.67	-58.49	-17.50	-6.69	7.14
Net Profit Margin (%)	-6.94	-58.31	-17.61	-5.70	5.45
NP After MI And SOA Margin (%)	-6.98	-58.04	-17.49	-5.61	5.56
Return on Networth / Equity (%)	-21.86	0.00	-99.20	-43.11	28.68
Return on Capital Employeed (%)	3.68	-210.97	-88.73	-35.63	54.29
Return On Assets (%)	-4.92	-36.65	-25.98	-7.69	6.15
Long Term Debt / Equity (X)	0.25	-3.11	0.00	0.00	0.00
Total Debt / Equity (X)	0.49	-8.95	0.47	0.70	1.13
Asset Turnover Ratio (%)	0.81	0.38	0.90	0.72	0.97
Current Ratio (X)	1.35	1.10	1.29	1.16	1.25
Quick Ratio (X)	1.35	1.10	1.29	1.15	1.25
Inventory Turnover Ratio (X)	0.00	329.26	481.17	230.66	196.62
Dividend Payout Ratio (NP) (%)	0.00	0.00	0.00	0.00	31.01
Dividend Payout Ratio (CP) (%)	0.00	0.00	0.00	0.00	29.65
Earning Retention Ratio (%)	0.00	0.00	0.00	0.00	68.99
Cash Earning Retention Ratio (%)	0.00	0.00	0.00	0.00	70.35
Interest Coverage Ratio (X)	0.28	-7.03	-10.67	-2.48	3.12
Interest Coverage Ratio (Post Tax) (X)	0.03	-7.11	-10.94	-2.12	2.56
Enterprise Value (Cr.)	12339.49	7446.64	5941.17	4305.20	1949.81
EV / Net Operating Revenue (X)	4.07	3.70	1.14	0.84	0.34
EV / EBITDA (X)	196.33	-7.31	-7.26	-18.68	3.21
MarketCap / Net Operating Revenue (X)	4.02	2.75	1.16	0.81	0.22
Retention Ratios (%)	0.00	0.00	0.00	0.00	68.98
Price / BV (X)	12.60	-24.62	6.57	6.24	1.14
Price / Net Operating Revenue (X)	4.02	2.75	1.16	0.81	0.22
EarningsYield	-0.01	-0.21	-0.15	-0.06	0.25

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹360.88

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 48.81% compared to the current price ₹705.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value: 606.89

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 13.92% compared to the current price ₹705.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 68.17%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has shown consistent growth in sales (4.63 cr) and profit (25.13 cr) over the years.	The stock has a low average ROCE of -9.86%, which may not be favorable. The stock has a high average Working Capital Days of 103.14, which may not be favorable. The stock has a high average Cash Conversion Cycle of 19.71, which may not be favorable. The company has higher borrowings (1,016.71) compared to reserves (616.71), which may suggest financial risk.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sterling & Wilson Renewable Energy Ltd:
1. Net Profit Margin: -6.94%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 3.68% (Industry Average ROCE: 29.15%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: -21.86% (Industry Average ROE: 18.97%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 0.03
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.35
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 0 (Industry average Stock P/E: 53.29)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.49
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company

INDUSTRY	ADDRESS	CONTACT
Industry not found	Address not found	Contact not found

Management Data not Available

FAQ

What is the latest fair value of Sterling & Wilson Renewable Energy Ltd?

The latest fair value of Sterling & Wilson Renewable Energy Ltd is ₹360.88.

What is the Market Cap of Sterling & Wilson Renewable Energy Ltd?

The Market Cap of Sterling & Wilson Renewable Energy Ltd is 16,458 Cr..

What is the current Stock Price of Sterling & Wilson Renewable Energy Ltd as on 07 September 2024?

The current stock price of Sterling & Wilson Renewable Energy Ltd as on 07 September 2024 is 705.

What is the High / Low of Sterling & Wilson Renewable Energy Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sterling & Wilson Renewable Energy Ltd stocks is 828/253.

What is the Stock P/E of Sterling & Wilson Renewable Energy Ltd?

The Stock P/E of Sterling & Wilson Renewable Energy Ltd is .

What is the Book Value of Sterling & Wilson Renewable Energy Ltd?

The Book Value of Sterling & Wilson Renewable Energy Ltd is 41.6.

What is the Dividend Yield of Sterling & Wilson Renewable Energy Ltd?

The Dividend Yield of Sterling & Wilson Renewable Energy Ltd is 0.00 %.

What is the ROCE of Sterling & Wilson Renewable Energy Ltd?

The ROCE of Sterling & Wilson Renewable Energy Ltd is 3.77 %.

What is the ROE of Sterling & Wilson Renewable Energy Ltd?

The ROE of Sterling & Wilson Renewable Energy Ltd is 56.7 %.

What is the Face Value of Sterling & Wilson Renewable Energy Ltd?

The Face Value of Sterling & Wilson Renewable Energy Ltd is 1.00.