Hidden Gem From SP Group, One of Their Subsidiaries is Making New 52 Week High – EQ Mag Pro
We have identified a Hidden gem from Shapoorji Pallonji Group, one of their subsidiary company is making 52 weeks with excellent growth potential in years to come.
Company background
Sterling and Wilson Solar Ltd (NS:STEN), the Solar EPC Division of Sterling and Wilson Private Limited, commenced operations in 2011 and was subsequently de-merged in 2017. This division was formed to tap into the growing renewable energy market.
The company is the leading solar EPC solutions provider in the world, with a presence across many countries. An impressive portfolio of several solar power projects with an aggregate capacity of 10.6 GWp across geographies has positioned Sterling and Wilson Solar as the leading solar EPC solutions provider in the world. Sterling and Wilson Solar strategically focus on markets that have conducive solar power policies and high solar resources as well as invests in geographies with long-term solar opportunities.
The inception of Sterling and Wilson is deep-rooted in the legendary friendship between Shapoorji Mistry Sr. and Mehervan Daruvala which later evolved into a powerful business partnership. In 1971, Wilson Electric Works merged with Sterling Investments, a group company of the Shapoorji Pallonji Group, to form an EPC powerhouse called Sterling and Wilson. The decision empowered the company to ride on global opportunities and emerge as a leading market player in due course.
The new entity Sterling and Wilson Private Limited commenced its operations in the 1970s with a few large-scale projects in the Middle East, further venturing into the Asian subcontinent and various other countries. Within a short span, it created a strong presence in regions such as the Middle East, Africa, Europe, the Americas, and Australia. Sterling and Wilson currently have operations in many countries.
The business area of the company
Sterling and Wilson Solar is the largest pure-play Solar EPC outside China and offers a complete range of Solar EPC solutions like design, engineering, procurement, construction, project management, and operations and maintenance.
– Sub vertical Utility
– ScaleSolar RooftopFloating SolarSolar PV
– Energy Storage Operation and Maintenance
Recent Awards
2019: Renewables Company of the Year 2
2020: ‘Utility-Scale Solar Project of the Year’ at MESIA Solar Awards2020: ‘Utility-Scale Project of the Year’ at AFSIA Solar Awards2020: MEED Project of the Year2020: Mega Project of the Year
Company Milestones Since inception:
2011: Ventured into Solar EPC business in India
2011: Secured EPC projects of 50 MWp
2013: Completed first turnkey EPC project in Rajasthan, India2013: Started International Solar Operations
2014: Commenced first international solar project (90 MWp) in South Africa
2015: Largest single-axis tracker plant in India (60 MWp)
2015: Recognised as the largest Indian solar EPC player according to an independent industry data provider
2016: Ventured into Rooftop Solar
2016: Started third-party O&M services
2017: Demerger of S&W Solar from S&W Group
2017: Expanded operations in the USA
2017: Incorporated a Subsidiary in Spain to cater to European and Latin American markets
2017: Bagged the world’s largest single-location EPC project order (1177 MWp) in Abu Dhabi
2018: Diversification in Solar + Storage
2018: Expanded operations in Australia by acquiring a controlling stake in GCO Electrical Pty Ltd
2019: Recognized as the world’s largest solar EPC solutions provider by IHS Markit
2019: Emerged as a global player with presence and operations across India, Middle East, Africa, South East Asia, Europe, US, and Australia.2019: Listed on BSE and NSE
2019: Commissioned first floating solar project of 450KW in India2020: Ranked India 1 and Global 2 as per Wood Mackenzie’s 2020 Global Operations & Maintenance Report
Latest Quarterly Announcement in July to September 2021 (ongoing)
On 26th August 2021 Sterling and Wilson Solar’s wholly-owned subsidiary — Sterling and Wilson International Solar FZCO (SWFZCO) has increased its shareholding in Sterling and Wilson Middle East Solar Energy (SWME Solar) from 147 fully paid Equity Shares of United Arab Emirates dirham 1,000 representing 49% to 300 fully paid-up Equity Shares of United Arab Emirates dirham 1,000 representing 100% of shareholding on August 24, 2021, consequent to which SWME Solar is now a wholly-owned subsidiary of SWFZCO.
On 30th July 2021
Sterling and Wilson Solar is planning to expand its renewable energy offerings to include EPC solutions for Hybrid Energy power plants, Energy Storage, and Waste to Energy. Hybrid Energy consists of solutions involving two or more sources of energy with or without energy storage. A large part of the global market is moving towards microgrids which are based on 100% renewable energy. There is a huge demand for decentralized power plants because not only are they environmentally friendly but are also economically viable. The waste-to-energy segment is a large and growing market in developed countries. Sterling and Wilson Solar aims to use their project management skills and strong stakeholder relationships.
We have learned through our prestigious sources that the following Bulk deals were conducted in the Last quarter of Q1 (April to June 2021)
BNP Paribas (PA:BNPP) Arbitrage bought 2303687 shares and increased its stake in SWSOLAR to 2.5% by investing 80.2 cr in the quarter ending JUN-2021
Hdfc Trustee Company Ltd.Bought 2277952 shares and increased its stake in SWSOLAR to 1.4% by investing 79.3 cr in the quarter ending JUN-202.
Individual (KK Daruvala) Bought 13000200 shares and increased stake in SWSOLAR to 8.1% by investing 452.4 cr in the quarter ending JUN-2021
Nippon Life India Trustee Ltd sold 1991273 shares and decreased its stake in SWSOLAR to 2.3% by selling 69.3 cr in the quarter ending JUN-2021
Thus the promoters holding in the company stood at 69.36%, while Institutions and Non-Institutions held 10.29% and 20.35% respectively.
Concluding Remarks:
The company had posted a consolidated net loss of Rs76.02cr for the quarter ending June 2021. Hence we feel the stock will go through a normal correction phase as it’s currently making a new 52-week high price @ 366.95 as of 7th September 2021;
We are also expecting profit booking from retail investors which will drive the stock prices down to 255 ~ 280 levels before a new bull run can be anticipated based on the new announcement as stated above.
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