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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sterling & Wilson Renewable Energy Ltd

About the Company - Sterling & Wilson Renewable Energy Ltd

Sterling and Wilson Renewable Energy Ltd. is a Public Limited Listed company incorporated on 09/03/2017 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74999MH2017PLC292281 and registration number is 292281. Currently Company is involved in the business activities of Construction of utility projects. Company’s Total Operating Revenue is Rs. 3459.58 Cr. and Equity Capital is Rs. 18.97 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - General9th Floor, Universal Majestic, P.L. Lokhande Marg, Mumbai Maharashtra 400043info@sterlingwilson.com
http://www.sterlingandwilsonre.com
Management
NamePosition Held
Mr. Khurshed Yazdi DaruvalaChairman, Non Ind & Non Exe Director
Mr. Pallon Shapoorji MistryNon Exe.Non Ind.Director
Mr. Balanadu NarayanNon Exe.Non Ind.Director
Mr. Saurabh AgarwalNon Exe.Non Ind.Director
Mr. Keki Manchersha ElaviaInd. Non-Executive Director
Ms. Rukhshana Jina MistryInd. Non-Executive Director
Ms. Naina Krishna MurthyInd. Non-Executive Director
Mr. Cherag BalsaraInd. Non-Executive Director

Sterling and Wilson Renewable Energy Ltd. Share Price Update

Share PriceValue
Today₹617.70
Previous Day₹632.75

Basic Stock Data of Sterling & Wilson Renewable Energy Ltd

Market Cap 14,079 Cr.
Current Price 604
High / Low647/253
Stock P/E
Book Value 17.2
Dividend Yield0.00 %
ROCE65.4 %
ROE338 %
Face Value 1.00

Data Source: screener.in

Competitors of Sterling & Wilson Renewable Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Somi Conveyor Beltings Ltd 118 Cr. 100117/32.225.5 58.10.00 %7.92 %5.31 % 10.0
McNally Bharat Engineering Company Ltd 123 Cr. 5.807.23/2.90 1770.00 %28.3 %% 10.0
Marshall Machines Ltd 93.7 Cr. 39.262.8/35.0 15.00.00 %5.59 %16.1 % 10.0
Skipper Ltd 4,016 Cr. 356362/85.256.0 70.90.03 %11.9 %4.33 % 1.00
Premier Ltd 9.87 Cr. 3.254.52/1.80 1070.00 %%% 10.0
Industry Average69.71 Cr100.8516.385.60.01%10.74%5.15%8.2

Sterling & Wilson Renewable Energy Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,3121,3651,1951,4381,4951,0711,20731340788515760583
Expenses1,2971,7891,2981,7331,8861,1951,551683471441552758599
Operating Profit14-424-104-294-391-124-344-370-64-352-371-16
OPM %1%-31%-9%-20%-26%-12%-28%-118%-16%-398%-7%0%-3%
Other Income3652333172349811-271727
Interest23231317281915333860626468
Depreciation4533443344344
Profit before tax23-400-87-284-416-123-358-308-95-418-95-50-61
Tax %4%14%12%-0%-3%-3%1%3%-4%-1%0%-9%-3%
Net Profit22-345-76-284-429-127-356-299-99-421-95-55-62
EPS in Rs1.35-21.63-4.75-17.75-22.27-6.66-18.66-15.65-5.34-22.01-5.03-2.86-2.73

Sterling & Wilson Renewable Energy Ltd Quarterly Chart

Sterling & Wilson Renewable Energy Ltd Profit & Loss

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,8728,2405,5755,0815,1992,0151,946
Expenses6,3307,5825,2465,4586,1023,1392,350
Operating Profit542658329-377-903-1,124-404
OPM %8%8%6%-7%-17%-56%-21%
Other Income132093031589511150
Interest2310022010587151253
Depreciation381417151516
Profit before tax529759398-340-910-1,179-624
Tax %15%16%24%15%-1%0%
Net Profit451638304-290-916-1,175-633
EPS in Rs281.9839.8519.34-17.80-47.94-61.65-32.63
Dividend Payout %0%0%31%0%0%0%

Sterling & Wilson Renewable Energy Ltd Profit & Loss Yearly Chart

Sterling & Wilson Renewable Energy Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:-22%
3 Years:-29%
TTM:-35%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:28%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:38%
1 Year:100%
Return on Equity
10 Years:%
5 Years:-41%
3 Years:-118%
Last Year:-338%

Sterling & Wilson Renewable Energy Ltd Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital16161616191919
Reserves1818251,065646898-244-419
Borrowings1842,2281,2344794462,0302,220
Other Liabilities4,5402,3232,7192,5682,1371,3862,193
Total Liabilities4,9205,3925,0343,7093,5003,1904,013
Fixed Assets21314546424464
CWIP3040000
Investments0000000
Other Assets4,8965,3604,9853,6633,4573,1463,949
Total Assets4,9205,3925,0343,7093,5003,1904,013

Sterling & Wilson Renewable Energy Ltd Reserves and Borrowings Chart

Sterling & Wilson Renewable Energy Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 251-723338201-1,690-1,829
Cash from Investing Activity -15-9241,018409949-12
Cash from Financing Activity -1411,972-1,313-8539781,431
Net Cash Flow9532543-243238-410

Sterling & Wilson Renewable Energy Ltd Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days97841336155143
Inventory Days1
Days Payable253
Cash Conversion Cycle-155841336155143
Working Capital Days131131134748271
ROCE %50%23%-14%-66%-65%

Sterling & Wilson Renewable Energy Ltd Financial Efficiency Indicators Chart

Sterling & Wilson Renewable Energy Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.36%69.36%69.36%74.10%78.56%78.56%76.69%72.73%72.73%69.03%67.56%52.99%
FIIs6.58%6.10%8.56%6.76%2.33%2.05%2.65%3.53%4.13%4.26%3.37%11.91%
DIIs4.40%4.19%3.62%3.00%3.17%3.38%3.90%4.74%5.55%5.57%5.94%9.75%
Public19.66%20.35%18.46%16.14%15.94%16.00%16.76%19.01%17.61%21.14%23.14%25.34%
No. of Shareholders43,20971,20665,7791,41,7161,56,5941,63,8041,62,3831,58,0021,54,1501,53,1281,58,6491,48,994

Sterling & Wilson Renewable Energy Ltd Shareholding Pattern Chart

No. of Sterling & Wilson Renewable Energy Ltd Shareholders

Sterling & Wilson Renewable Energy Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Focused Equity Fund29212561.62126.3
Nippon India Power & Infra Fund18000002.2577.82
HDFC Large and Mid Cap Fund - Regular Plan16750000.4872.42
Nippon India Value Fund11527370.7349.84
Nippon India Retirement Fund - Wealth Creation Scheme10000001.4943.24
Bandhan Sterling Value Fund9000000.538.91
Sundaram Small Cap Fund8157701.1735.27
Bandhan Multi Cap Fund5000001.1921.62
Bandhan Infrastructure Fund3079271.5113.31
ITI Focused Equity Fund2593653.9911.21

Sterling & Wilson Renewable Energy Ltd ROCE Trend

Sterling & Wilson Renewable Energy Ltd EPS Trend

Sterling & Wilson Renewable Energy Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-61.65-54.21-17.8019.3339.85
Diluted EPS (Rs.)-61.65-54.21-17.8019.3339.85
Cash EPS (Rs.)-61.16-47.50-17.0519.8640.29
Book Value[Excl.RevalReserv]/Share (Rs.)-12.6747.7541.0166.8752.23
Book Value[Incl.RevalReserv]/Share (Rs.)-12.6747.7541.0166.8752.23
Revenue From Operations / Share (Rs.)106.22274.06316.76347.59513.87
PBDIT / Share (Rs.)-53.72-43.16-14.3737.8853.11
PBIT / Share (Rs.)-54.50-43.94-15.4037.0052.62
PBT / Share (Rs.)-62.14-47.98-21.2024.8447.34
Net Profit / Share (Rs.)-61.94-48.27-18.0818.9739.80
NP After MI And SOA / Share (Rs.)-61.65-47.94-17.7919.3339.85
PBDIT Margin (%)-50.57-15.74-4.5310.8910.33
PBIT Margin (%)-51.30-16.03-4.8610.6410.24
PBT Margin (%)-58.49-17.50-6.697.149.21
Net Profit Margin (%)-58.31-17.61-5.705.457.74
NP After MI And SOA Margin (%)-58.04-17.49-5.615.567.75
Return on Networth / Equity (%)0.00-99.20-43.1128.6875.97
Return on Capital Employeed (%)-210.97-88.73-35.6354.2999.72
Return On Assets (%)-36.65-25.98-7.696.1511.85
Long Term Debt / Equity (X)-3.110.000.000.000.00
Total Debt / Equity (X)-8.950.470.701.132.65
Asset Turnover Ratio (%)0.380.900.720.971.73
Current Ratio (X)1.101.291.161.251.17
Quick Ratio (X)1.101.291.151.251.17
Inventory Turnover Ratio (X)329.26481.17230.66196.62393.29
Dividend Payout Ratio (NP) (%)0.000.000.0031.010.00
Dividend Payout Ratio (CP) (%)0.000.000.0029.650.00
Earning Retention Ratio (%)0.000.000.0068.990.00
Cash Earning Retention Ratio (%)0.000.000.0070.350.00
Interest Coverage Ratio (X)-7.03-10.67-2.483.1210.06
Interest Coverage Ratio (Post Tax) (X)-7.11-10.94-2.122.568.54
Enterprise Value (Cr.)7446.645941.174305.201949.810.00
EV / Net Operating Revenue (X)3.701.140.840.340.00
EV / EBITDA (X)-7.31-7.26-18.683.210.00
MarketCap / Net Operating Revenue (X)2.751.160.810.220.00
Retention Ratios (%)0.000.000.0068.980.00
Price / BV (X)-24.626.576.241.140.00
Price / Net Operating Revenue (X)2.751.160.810.220.00
EarningsYield-0.21-0.15-0.060.250.00

Sterling & Wilson Renewable Energy Ltd Profitability Ratios (%)

Sterling & Wilson Renewable Energy Ltd Liquidity Ratios

Sterling & Wilson Renewable Energy Ltd Liquidity Ratios (%)

Sterling & Wilson Renewable Energy Ltd Interest Coverage Ratios (X)

Sterling & Wilson Renewable Energy Ltd Valuation Ratios

YoY Net Profit Growth
Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)41.46%-52.35%-195.39%-215.86%-28.28%
Change in YoY Net Profit Growth (%)0.00%-93.81%-143.04%-20.47%187.59%

Fair Value / Intrinsic Value of Sterling & Wilson Renewable Energy Ltd

Fair Value: ₹889.48

The stock is undervalued by 47.27% compared to the current price ₹604

*Investments are subject to market risks

Strength and Weakness of Sterling & Wilson Renewable Energy Ltd

StrengthWeakness
    1. The stock is trading at a high valuation with an average P/B ratio of -4.84 and average Dividend Yield of -10.26%.
    2. The stock has a low average ROCE of -12.00%, which may not be favorable.
    3. The stock has a high average Working Capital Days of 100.83, which may not be favorable.
    4. The stock has a high average Cash Conversion Cycle of 53.50, which may not be favorable.
    5. The company has higher borrowings (1,260.14) compared to reserves (421.71), which may suggest financial risk.
    6. The company has not shown consistent growth in sales (4.57) and profit (-27.00).

    Should I Buy Sterling & Wilson Renewable Energy Ltd Share Now?

    • Considering various financial indicators, investors might exercise caution regarding investment in Sterling & Wilson Renewable Energy Ltd:
      1. Net Profit Margin: -58.31%
        • 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: -210.97% (Industry Average ROCE: 10.52%)
        • 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. Interest Coverage Ratio (Post Tax): -7.11
        • 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.
      4. Quick Ratio: 1.10
        • 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.
      5. ✓ Stock P/E of N/A (Industry average Stock P/E: 26.38)
        • 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.
      6. ✓ Total Debt / Equity: -8.95
        • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sterling & Wilson Renewable Energy Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE