Rs 282 to Rs 760: This stock delivered multibagger returns in six months, closed at upper circuit today 

Shares of Sterling and Wilson Renewable Energy have delivered multibagger returns in the last six months. The stock has risen 156% during the period.  The stock hit a record high amid high volatility in the market today. Sterling and Wilson stock rose 5% to a record high of Rs 760 against the previous close of Rs 723.85 on BSE. It was stuck in the upper circuit of 5% at close of market today. A total of 8.02 lakh shares of the firm changed hands amounting to a turnover of Rs 60.82 crore on BSE. Market cap of the firm rose to Rs 17,725.69 crore on BSE. The stock opened higher at Rs 736.95 today.  

The stock fell to a 52-week low of Rs 253.45 on October 19, 2023.  

YES Securities has assigned a price target of Rs 900 for the civil construction stock.

“With the company's turnaround, significant deleveraging of the balance sheet, a robust order pipeline, and anticipated strong orders in the upcoming year, we are optimistic about the stock's potential for re-rating from its current position. Therefore, we recommend a Buy stance,” said YES Securities.

“The company expects new orders from their existing customers and PSUs in FY25. Both Reliance and Nigeria orders are anticipated in FY25, hence, further strengthening the order pipeline of the company. With a recent upgrade in long-term rating and a regular order inflow from domestic and international clients, the company is expected to grow along with the Solar EPC market with a CAGR of 15-20%, excluding orders from Reliance and Nigeria,” added YES Securities.

Brokerage Nuvama Institutional Equities has maintained a 'Buy' rating on the stock with a target price of Rs 850. It forecasts a V-shaped earnings recovery from FY25E, accelerating to a hockey stick curve on a strong global outlook.

"With global solar PV capacity poised to more than double by 2026, immense opportunities are in the offing for Indian companies, particularly Sterling and Wilson Renewable Energy, to scale up globally, leveraging India’s lowest PV installation cost," the brokerage said.

In terms of technicals, the relative strength index (RSI) of Sterling and Wilson stands at 66.4, signaling it's trading neither in the overbought nor in the oversold territory. The stock has a beta of 0.7, indicating low volatility in a year. Shares of Sterling and Wilson stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Sterling and Wilson Renewable Energy Limited is an end-to-end renewable engineering, procurement, and construction (EPC) solutions provider. It provides EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manages all aspects of project execution from conceptualizing to commissioning.