A Reliance-backed renewable EPC major — is back in the spotlight, with analysts projecting up to 76% upside potential in its stock, riding on a wave of fresh project wins, a healthier balance sheet, and operational turnaround.
Brokerage Calls and Target Price
Leading brokerage Nuvama Institutional Equities has maintained a bullish stance on Sterling and Wilson Renewable Energy, assigning it a “Buy” rating with a 12-month target price of INR 470 per share. This implies a potential upside of approximately 76% from the stock’s closing price of INR 266.20 on 1 April 2025.
Nuvama’s optimism stems from strong site-level progress at SWREL’s flagship Khavda project in Gujarat, improved financial visibility, and upcoming order inflows expected in FY26.
“At current levels, the stock trades at just 12x its FY27E EPS, significantly lower than the 20–27x P/E multiples of its listed peers — making it an attractive long-term bet,” said Nuvama in its recent report.
Operational Turnaround
SWREL has staged a remarkable turnaround over the last few quarters. In Q3 FY25 (Dec 2024), the company reported:
- Revenue: INR 1,837 crore (YoY growth of 215%)
- EBITDA: INR 70.5 crore (vs INR 16 crore YoY)
- PAT: INR 14.8 crore (vs loss of INR 63.7 crore YoY)
- EBITDA Margin: Improved to 3.8%
This recovery is a sharp contrast to its financial position a year ago, when it posted steep losses and was grappling with debt servicing challenges. Notably, the stock price had plummeted to INR 218 in March 2024 after loan defaults in late 2023. However, SWREL has since worked toward deleveraging and is now reported to be close to debt-free.
Strong Order Book and Winning Streak
On 1 April 2025, Sterling and Wilson announced a major order win of INR 1,470 crore, comprising:
- A hybrid wind-solar EPC project in Rajasthan (its first-ever wind EPC order)
- A 260 MW solar project in Gujarat from a PSU
- A third PV project in Rajasthan from a private IPP
The hybrid project includes a 69.3 MW wind BoP and 58 MW solar BoS, along with a 132 kV/33 kV substation, marking the company’s formal entry into wind EPC — a strategic diversification beyond solar and BESS.
SWREL’s order book now stands at over INR 10,167 crore, with ~80% of revenues driven by domestic EPC projects. The management has guided for an order inflow of INR 6,000–8,000 crore in FY26, with multiple project tenders in the pipeline.
Sterling and Wilson Post-IPO Performance
Sterling and Wilson launched its IPO on 6 August 2019 with an issue size of INR 3,125 crore. The issue was completely an offer-for-sale, and was subscribed 85%. SWREL IPO landed in red with a loss of 6.9% on listing day.
However, post-listing the stock sunk more deeper to a lowest level of INR 77.20 per share, reflecting a loss of 87%. Notably, the shares of SWREL recovers impressively and reached their all-time of INR 820.65 per share, reflecting a multibagger 10X returns on investment.
Institutional Moves Signal Confidence
In February 2025, Morgan Stanley Asia Singapore acquired a 1.56% stake in SWREL via open market transactions worth INR 103 crore. Meanwhile, Goldman Sachs offloaded a similar stake. The buy-in from a heavyweight like Morgan Stanley underlines institutional confidence in the company’s turnaround.
Strategic Backing and Market Presence
A part of the Shapoorji Pallonji Group, SWREL now has significant support from Reliance Industries, which holds a 32.6% stake through its clean energy arm. The company boasts:
- 18 GWp+ EPC portfolio
- 7.8 GWp under O&M
- Presence in 28 countries
The company has also been expanding its capabilities in hybrid and floating solar, as well as Battery Energy Storage Systems (BESS).
Valuation vs Peers
Despite the recent run-up, Sterling and Wilson continues to trade at a deep discount to peers, both in terms of P/E ratio and valuation multiples. As per some reports, SWREL’s trailing PE is ~183x (likely reflecting earnings normalization ahead), but its forward PE of 12x based on FY27E earnings makes it an undervalued growth pick in the renewable space.
In contrast, the industry average PE stands at 31.5x, and many listed EPC peers trade at even higher multiples.
Stock Price Snapshot
- Current Price: INR 256.8 (1 April 2025)
- 52-week High: INR 805.15
- 52-week Low: INR 219.6
- 1-Year Return: -52.18%
- 3-Year Return: -24.57%
- Market Cap: INR 5,849 crore
Analyst Takeaway
Despite short-term underperformance, Sterling and Wilson Renewable Energy seems to have entered a transformational phase. With:
- Positive earnings turnaround,
- Entry into wind EPC,
- Strong backing from Reliance,
- A healthy and growing order book, and
- Promising FY26 guidance,
analysts believe the stock could stage a strong re-rating in the coming quarters.
“From being a default-prone stock to now clocking profits and diversifying into wind energy, the journey of SWREL is becoming a case study in turnaround investing,” noted a senior analyst at a domestic fund house.
Verdict
For long-term investors with a risk appetite for small-cap turnaround stories in the clean energy sector, Sterling and Wilson Renewable appears well-positioned. The up to 76% upside target is not without merit — provided execution risks are managed, and order inflows stay strong.
Disclaimer: This content is for informational purposes only. Please consult a financial advisor before making any investment decisions. Market risks apply.