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

NDR INVIT Trust

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Ashoka Buildcon

PNC Infratech

Man Infra

Indus Inf. Trust

Sterling & Wils.

Energy InfrTrust

Oriana Power Ltd

Bondada Engineer

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 8.24% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.94 times

27.62% of Promoter Shares are Pledged

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.81% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.93% returns

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.

-18.89%

-0.43

43.89%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.24%

EBIT Growth (5y)

22.13%

EBIT to Interest (avg)

-3.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

2.91

Tax Ratio

9.45%

Dividend Payout Ratio

Pledged Shares

27.62%

Institutional Holding

10.16%

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

7.78

EV to EBIT

19.65

EV to EBITDA

18.91

EV to Capital Employed

4.37

EV to Sales

0.76

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

22.25%

ROE (Latest)

43.33%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

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

23What is working for the Company

ROCE(HY)

Highest at 26.86%

PBDIT(Q)

Highest at Rs 145.76 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 7.49%

PBT LESS OI(Q)

Highest at Rs 101.18 cr.

PAT(Q)

Highest at Rs 134.57 cr.

EPS(Q)

Highest at Rs 5.76

-5What is not working for the Company

INTEREST(Latest six months)

At Rs 89.14 cr has Grown at 37.90%

NON-OPERATING INCOME(Q)

is 34.35 % of Profit Before Tax (PBT

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Here's what is working for Sterling & Wils.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 101.18 cr has Grown at 199.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 33.81 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 134.57 cr has Grown at 166.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 50.59 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 145.76 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 7.49%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 101.18 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 134.57 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.76

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

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

Interest - Latest six months

At Rs 89.14 cr has Grown at 37.90%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 34.35 % 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