Stock Performance and Market Context
On 8 December 2025, Sterling & Wilson Renewable Energy's share price touched an intraday low of Rs.210.35, representing a 4.86% decline during the trading session. This movement contributed to an overall day change of -5.95%, underperforming its sector by 4.4%. Over the past four trading days, the stock has recorded a cumulative return of -9.27%, signalling sustained selling pressure.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward trend. This contrasts with the broader market, where the Sensex opened flat but later declined by 0.33%, trading at 85,433.48 points. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 0.85% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, reflecting a generally bullish market environment.
Long-Term Performance and Valuation Metrics
Over the last year, Sterling & Wilson Renewable Energy has recorded a negative return of 59.52%, a stark contrast to the Sensex's positive 4.49% performance during the same period. The stock's 52-week high was Rs.526, highlighting the extent of the recent decline.
From a fundamental perspective, the company exhibits a modest average Return on Capital Employed (ROCE) of 5.08% over the long term. Net sales have shown a compound annual growth rate of 7.26% over the past five years, indicating moderate expansion. However, the company's debt servicing capacity is constrained, with a Debt to EBITDA ratio of -1.00 times, suggesting elevated leverage concerns.
Additionally, 27.62% of promoter shares are pledged, a factor that can exert downward pressure on the stock price during market downturns.
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Recent Financial Results and Profitability
Despite the stock's price challenges, Sterling & Wilson Renewable Energy has reported positive financial results in recent quarters. The company has declared profits for seven consecutive quarters, with the latest quarterly PAT standing at Rs.106.90 crore. This figure reflects a growth rate of 291.5% compared to the previous four-quarter average.
Net sales for the nine-month period reached Rs.6,029.34 crore, indicating a higher revenue base. The company’s ROCE for the recent period is reported at 22.4%, accompanied by an enterprise value to capital employed ratio of 4.8, suggesting an attractive valuation relative to capital utilisation.
Furthermore, the stock is trading at a discount compared to its peers’ average historical valuations. Over the past year, while the stock price has declined by 59.52%, profits have risen by 510%, resulting in a PEG ratio of 0.1.
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Comparative Sector and Market Analysis
Within the construction sector, Sterling & Wilson Renewable Energy's recent performance contrasts with broader market trends. While the Sensex maintains a position near its yearly peak and exhibits bullish moving averages, Sterling & Wilson Renewable Energy's stock remains below all major moving averages, reflecting a divergence from the general market momentum.
The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating challenges in maintaining competitive returns within its sector and the wider market.
Promoter share pledging remains a notable factor, with over a quarter of promoter holdings pledged. This situation can contribute to additional selling pressure during periods of market weakness, potentially influencing the stock's downward movement.
Summary of Key Metrics
To summarise, Sterling & Wilson Renewable Energy's stock has reached a 52-week low of Rs.210.35, following a series of declines over recent sessions. The stock's long-term return over the past year stands at -59.52%, contrasting with the Sensex's positive 4.49% return. The company’s financial indicators show moderate sales growth and a modest average ROCE, alongside a high Debt to EBITDA ratio and significant promoter share pledging.
Despite these challenges, the company has reported consistent profitability in recent quarters, with notable growth in PAT and net sales, and valuation metrics that suggest a discount relative to peers.
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