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MomentumDeep Value

Which Solar EPC Stocks Are Deep Value Picks in Week of Jun 14, 2026?

ACCEL

In the Week of Jun 14, 2026, the Solar EPC sector has 2 stocks that are underperforming Nifty 500 but have accelerating quarterly earnings. Average value score is 59/100 with PAT acceleration of +241pp.

Total Stocks
2
deep value
Avg Fundamental
59
/100
Top Pick
Sterling
Score: 66/100
Avg Margin of Safety
Undervalued

Stock Distribution

0 Strong1 Good1 Average0 Weak

Earnings & Valuation Signals

💰

2 of 2 stocks trading below fair value — sector offers value opportunities.

AI Research Summary

Sector Pulse

The Solar EPC sector is entering a phase of hyper-execution, as evidenced by WAAREERTL's Q4 FY26 results. Revenue surged by 131.31% YoY to ₹1,102.40 Cr, driven by the rapid conversion of a massive order book. This performance highlights a sector benefiting from India's aggressive 500 GW renewable energy target. While absolute EBITDA grew 63.71%, margins saw a contraction to 18.76% from the previous year's 26.51%, a shift attributed to project mix and the inclusion of module supplies in turnkey contracts.

Catalysts Playing Out Across the Pack

The primary catalyst is the Order Book Or Contract Wins, with WAAREERTL holding 2,832 MWp in unexecuted orders. This is complemented by Operating Leverage Inflection, where full-year revenue growth of 108.5% significantly outpaced the 65.6% increase in employee expenses. Furthermore, Tam Expansion Changing Consumption is visible through a 29 GW bid pipeline, which includes 5-6 GW of active tenders. The emergence of BESS (Battery Energy Storage Systems) as a New Product Or Brand Launch catalyst is also noteworthy, as storage becomes a standard component in new renewable tenders.

What Managements Are Guiding

Management remains focused on disciplined growth. WAAREERTL has REAFFIRMED its long-term EBITDA margin guidance of 15%+, despite currently operating above that level. They expect to execute the current 2.83 GWp order book within a 12-15 month window. The company is also scaling its IPP segment, with 227.10 MWp under development, aimed at generating high-margin recurring revenue.

Sub-Sector Aggregates

The sector is characterized by massive scale, with an Unexecuted Order Book Mwp of 2,832 MWp for the lead constituent. The Bid Pipeline Gw stands at a staggering 29 GW, indicating that the opportunity set is far larger than current execution capacities. Revenue growth remains triple-digit at 131.31% YoY, although margins are expected to stabilize around the 15% mark as project mixes evolve.

Shared Risks (9-type taxonomy)

The most prominent risk is commodity volatility. The revocation of export rebates by China on solar modules and cells poses a potential threat to input costs. WAAREERTL mitigates this by immediately booking raw materials upon order confirmation. Additionally, regulatory risks regarding transmission capacity constraints are being monitored, though management currently reports no slowdown in the 29 GW pipeline.

Bottom Line

We maintain a BULLISH stance on the Solar EPC sector. The combination of a massive Order Book Or Contract Wins and a 29 GW bid pipeline suggests multi-year growth visibility, while proactive hedging against commodity price risks protects the reaffirmed 15% margin floor.

Last updated Apr 19, 2026

2 stocks in this sector

View:
Strong62/100

KP Green Engineering Ltd

1.8K Cr
Deeply Undervalued
Earnings Pulse
PAT YoY
+67%
Stable
Revenue YoY
+65%
Momentum
Building
↗
Average55/100

Sterling & Wilson Renewable Energy Ltd

4.9K CrAccel
Deeply Undervalued
Earnings Pulse
PAT YoY
+158%
Stable
Revenue YoY
-23%
Momentum
Slowing
↘

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Frequently Asked Questions: Solar EPC

Based on publicly available financial data. This is educational research, not investment advice.

How many Solar EPC stocks are deep value opportunities worth studying?

There are currently 2 stocks in the Solar EPC sector that qualify as deep value opportunities worth studying. These stocks are underperforming the market despite showing improving earnings — a classic contrarian research signal.

Which Solar EPC deep value stocks appear most undervalued?

The most undervalued Solar EPC deep value stocks based on fair value analysis

  • KP Green Engineering Ltd — Significantly Undervalued
  • Sterling & Wilson Renewable Energy Ltd — Significantly Undervalued
  • Stocks sorted by valuation signal (most undervalued first).

Which Solar EPC deep value stock has the highest earnings acceleration?

Solar EPC deep value stocks with the highest earnings growth

  • Sterling & Wilson Renewable Energy Ltd — PAT growth +158.2% YoY, earnings stable
  • KP Green Engineering Ltd — PAT growth +67.4% YoY, earnings stable

Why are Solar EPC stocks underperforming despite improving earnings?

Solar EPC deep value stocks are underperforming despite improving earnings because the market has not yet recognized their earnings recovery. This creates a potential opportunity for patient investors

  • The market often takes 2-4 quarters to re-rate stocks after earnings improve
  • Deep value stocks typically have a negative narrative that suppresses sentiment
  • Improving earnings combined with market underperformance creates a valuation gap
  • When the market eventually recognizes the recovery, re-rating can be significant
  • This is an educational explanation of deep value investing theory.

Which Solar EPC deep value stocks have the highest revenue growth?

Solar EPC deep value stocks with the highest revenue growth

  • KP Green Engineering Ltd — Revenue growth +65.3% YoY
  • Sterling & Wilson Renewable Energy Ltd — Revenue growth -22.7% YoY

What is the average PE ratio of Solar EPC deep value stocks?

The average PE ratio of Solar EPC deep value stocks is 15.6x. Deep value stocks typically trade at lower PE multiples relative to their sector peers, reflecting the market's skepticism about their recovery.

Is the earnings recovery in Solar EPC sustainable?

Sustainability indicators for the Solar EPC deep value earnings recovery

  • A sustainable recovery shows more stocks accelerating than decelerating.

Is Solar EPC a contrarian opportunity worth studying?

Solar EPC as a contrarian opportunity — key research signals

  • 2 stocks underperforming the market (contrarian setup)
  • 2 stocks appear undervalued based on fair value analysis
  • Contrarian investing requires patience.

What is the typical recovery timeline for deep value stocks?

Deep value stock recovery timelines vary, but historical patterns suggest

  • 1-2 quarters: Earnings inflection detected, market still skeptical
  • 2-4 quarters: Consistent earnings improvement builds confidence
  • 4-6 quarters: Market re-rates, stock price catches up to fundamentals
  • Some stocks never recover — continuous monitoring is essential
  • Timelines are approximate and based on historical patterns.

What is deep value investing?

Deep value investing is a strategy of studying stocks that are underperforming the market despite showing improving fundamentals (earnings growth, margin expansion). The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap.

  • These stocks typically underperform indices like Nifty 500
  • They show positive earnings trends (PAT growth, revenue growth)
  • The market eventually re-rates them as earnings improvements sustain
  • It requires patience — recovery can take several quarters

The above FAQs are based on publicly available financial data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.