Sterling & Wilson jumps 9% as it emerges bidder for Rs 2,100 cr project

Shares of Sterling and Wilson Renewable Energy soared 9 per cent to Rs 327.50 in Tuesday’s intra-day trade, after the company emerged as successful bidder for work of solar PV project worth around Rs 2,100 crore.

"The balance of system (BOS) package comprising of four blocks of 300 MW each in the proposed 1200MW Solar PV Project of NTPC Renewable Energy at Khavda RE Power Park, Rann of Kutch. The total bid value, including operation and maintenance for three years, will be Rs 2,100 crore," the company said.

So far in calendar year 2023, the stock outperformed market as shares surged 19 per cent. In comparison, the S&P BSE Sensex was down 5.3 per cent, during the same period.

Sterling & Wilson offers design, detailed engineering, procurement, construction, installation, commissioning and operations & maintenance services under turnkey EPC and BoS (Balance of System) solutions for utility-scale, rooftop and floating solar power projects. The company also offers solar plus storage solutions.

On the industry outlook, Sterling & Wilson, in investor presentation said that an unprecedented commodity super cycle over last 2 years coupled with Covid-19 led to the solar industry suffer huge losses and Independent Power Producers (IPP’s) defer projects.

"The significant consolidation observed in the industry with stronger players are expected to take a larger share of the market in the future. Solar industry well poised to grow in long term as IPPs have huge plans for global capacity additions. The global tariffs have already corrected upwards with the revision in prices and a lot of projects are expected to get finalized in FY23," the company added.

Meanwhile, Reliance group’s investment in the company led to strengthening of their balance sheet and increased confidence to customers, suppliers, bankers and other stakeholders.

The company’s focus is to grab large share of EPC capacity additions in FY23 like US (23 GW), Europe (16 GW), Australia (3 GW) and India (16 GW). The company is pursuing development activities in the international markets to secure more EPC business.