Sterling & Wilson Renewable Energy Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sterling & Wilson Renewable Energy Ltd trades at ₹222, in a downtrend and 87 weeks into that stage. That is −1.8% against its own 200-day average. It sits at 57% of a 52-week range of ₹158 to ₹271. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 13 straight weeks.

Today the stock is in a downtrend — week 87 of stage 4, confirmed. At ₹222 it trades −1.8% versus its 200-day average and sits at 57% of its 52-week range (₹158–₹271).

Against the market, two honest reads. Cumulative: over the last 6.9 years the stock moved −64% while the NIFTY 500 moved +160% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 13 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 40th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sterling & Wilson Renewable Energy Ltd trades at 15.6× P/E, mid-range by its own standards (40th percentile). Its long-run median P/E is 17.4×, measured across 6.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 15.6× is mid-range by its own standards (40th percentile), against a long-run median of 17.4× measured over 6.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −479.7% against a −30.7% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the −4.7%/yr price move, ~+2.0%/yr came from earnings growth and ~−6.7 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sterling & Wilson Renewable Energy Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 12 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

36.4/100 — rank 4 of 5 in Solar EPC · 80% evidence confidence

Sterling & Wilson Renewable Energy Ltd scores 36.4 out of 100 against the 5 companies it is compared with in Solar EPC, ranking 4. Price leads the evidence: RS versus the benchmark is -0.2%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 4.5 + 5.2 + 9.3 + 17.4 = 36.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sterling & Wilson Renewable Energy Ltd reported ₹1,590 Cr of revenue in the Jun 26 quarter, −9.8% year on year. Over 8 years it has compounded at 1.2% a year. The last full year, FY26, came in at ₹7,548 Cr. The last four reported quarters add to ₹7,377 Cr.

Sterling & Wilson Renewable Energy Ltd reported ₹1,590 Cr of revenue in the Jun 26 quarter, −9.8% year on year. Over 8 years it has compounded at 1.2% a year. The last full year, FY26, came in at ₹7,548 Cr. The last four reported quarters add to ₹7,377 Cr.

FY26 revenue came in at ₹7,548 Cr (+19.8% on the year), capping 8 years at 1.2% compound. The latest quarter (Jun 26) printed ₹1,590 Cr, −9.8% year on year.

Pace check: the last four quarters averaged +12.8% growth against the decade's 1.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +3.2% over the last 4 quarters against +46.5%/yr over the last 8 — rolling over.

→ Revenue slipped — did margins hold as it scaled? Next: 5.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sterling & Wilson Renewable Energy Ltd's operating margin is 5.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged −56.0% to 8.0%. The current quarter sits inside that band.

Sterling & Wilson Renewable Energy Ltd's operating margin is 5.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged −56.0% to 8.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 5.0%, +0.0 pp against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged −56.0%–8.0%.

Why the margin moved: operating margin went +0.1 pp year on year while gross margin went +2.1 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +35.9% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sterling & Wilson Renewable Energy Ltd earned ₹53.0 Cr of net profit in the Jun 26 quarter, +35.9% year on year. It is the 2nd consecutive quarter of growth. The full FY26 year was a loss of ₹296 Cr. That is 3.3% of the quarter's revenue. The same quarter a year earlier earned ₹39.0 Cr.

Sterling & Wilson Renewable Energy Ltd earned ₹53.0 Cr of net profit in the Jun 26 quarter, +35.9% year on year. It is the 2nd consecutive quarter of growth. The full FY26 year was a loss of ₹296 Cr. That is 3.3% of the quarter's revenue. The same quarter a year earlier earned ₹39.0 Cr.

Jun 26 profit was ₹53.0 Cr, +35.9% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹−296 Cr (−444.2%).

Why profit moved: revenue contributed −9.8% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −1,326.3% vs revenue +12.8%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: −34% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −34% of Sterling & Wilson Renewable Energy Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−257 Cr of operating cash against ₹−296 Cr of profit. After ₹6.0 Cr of capital spending, ₹−263 Cr was left as free cash.

FY26: operating cash of ₹−257 Cr against reported profit of ₹−296 Cr, leaving free cash of ₹−263 Cr after ₹6.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −34% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −34%: the cash cycle stretched 26 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 26 days — the next section's job is to find where the cash is stuck.

→ So follow the cash to where it goes. Next: the 87-day cycle, in money terms.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sterling & Wilson Renewable Energy Ltd's cash conversion cycle runs 87 days in FY26, up from 61 days in FY21. Capital spending ran ₹39.0 Cr over the last 3 years. At FY26 sales of ₹7,548 Cr each day of that cycle holds about ₹20.7 Cr, so roughly ₹1,799 Cr sits inside the business at any moment.

FY26: debtors at 87 days, inventory at 0 days — roughly 0.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 87 days, looser than FY21's 61.

The full loop: cash goes out to suppliers and production on day 0; stock waits 0 days to sell; customers pay about 87 days after that; and suppliers themselves are paid at 195 days — netting out to the 87-day cycle.

In money terms: at FY26 sales of ₹7,548 Cr, each day of the cycle holds about ₹20.7 Cr — so the 87-day loop keeps roughly ₹1,799 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹39.0 Cr over the last 3 fiscal years against ₹42.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 27% and the ROIC − WACC spread is +6.7 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sterling & Wilson Renewable Energy Ltd earns a ROCE of 27% in FY26. That is up from a trough of −66% in FY22. Return on invested capital clears the cost of that capital by +6.7 percentage points, so growth here adds value rather than only size. The wiring behind it is −3.9% net margin on 1.42× asset turns.

FY26 ROCE is 27%, recovered from a FY22 trough of −66% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): −3.9% net margin × 1.42× asset turns × 8.19× balance-sheet leverage ≈ −45.4% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 18.7% − 12.0% = a +6.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 1.84.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Sterling & Wilson Renewable Energy Ltd carries total debt of ₹1,191 Cr against shareholder equity of ₹651 Cr as of Jun 26, a debt-to-equity of 1.83. On the annual view that ratio went from 0.49 in FY22 to 1.83 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Jun 26: total debt of ₹1,191 Cr against shareholder equity of ₹651 Cr — a debt-to-equity of 1.83. On the annual view, debt-to-equity went from 0.49 (FY22) to 1.83 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 7.2 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 7.2 points of Sterling & Wilson Renewable Energy Ltd over 8 quarters, the biggest move on the register. That takes promoters to 45.7% of the company. Foreign institutions moved −5.0 points over the same window, to 5.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −7.2 points over 8 quarters to 45.7%; Foreign institutions: −5.0 points over 8 quarters to 5.1%; Domestic institutions: −4.3 points over 8 quarters to 4.8%.

🚨 Why the register moved: promoters drove it (−7.2 points), alongside foreign institutions (−5.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sterling & Wilson Renewable Energy Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions