Sterling & Wilson Renewable Energy Ltd (SWSOLAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PSP Projects

Ceigall India

Ahluwalia Contr.

Hind.Construct.

J Kumar Infra

Sterling & Wils.

KNR Construct.

H.G. Infra Engg.

ISGEC Heavy

Man Infra

Energy InfrTrust

Why is Sterling & Wilson Renewable Energy Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.22%

Poor long term growth as Net Sales has grown by an annual rate of 7.21% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.94 times

Flat results in Jun 26

OPERATING CF(Y) Lowest at Rs -257.35 Cr
PAT(Q) At Rs 54.22 cr has Fallen at -23.0% (vs previous 4Q average)
INTEREST(9M) At Rs 128.06 cr has Grown at 33.81%

27.62% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Below par performance in long term as well as near term

Along with generating -25.24% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sterling & Wils. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sterling & Wils.

-25.26%

-0.58

43.28%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.21%

EBIT Growth (5y)

20.50%

EBIT to Interest (avg)

-2.97

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

2.91

Tax Ratio

2.45%

Dividend Payout Ratio

Pledged Shares

27.62%

Institutional Holding

9.86%

ROCE (avg)

-36.08%

ROE (avg)

10.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.41

EV to EBIT

19.30

EV to EBITDA

18.53

EV to Capital Employed

4.19

EV to Sales

0.74

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

22.25%

ROE (Latest)

43.33%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

PAT(Latest six months)

At Rs 188.79 cr has Grown at 116.13%

ROCE(HY)

Highest at 26.86%

-12What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -257.35 Cr

PAT(Q)

At Rs 54.22 cr has Fallen at -23.0% (vs previous 4Q average

INTEREST(9M)

At Rs 128.06 cr has Grown at 33.81%

NET SALES(Q)

Lowest at Rs 1,590.13 cr

NON-OPERATING INCOME(Q)

is 35.62 % of Profit Before Tax (PBT

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Here's what is not working for Sterling & Wils.

Profit After Tax (PAT) - Quarterly

At Rs 54.22 cr has Fallen at -23.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 70.39 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -257.35 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

At Rs 1,590.13 cr has Fallen at -15.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,887.01 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Nine Monthly

At Rs 128.06 cr has Grown at 33.81%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 1,590.13 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 35.62 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT