Sterling and Wilson Renewable Energy shares jump 9% today amid heavy volumes; here's why

Shares of Sterling and Wilson Renewable Energy rose sharply in Tuesday's trade amid heavy volumes. The stock surged 9.39 per cent to hit a day high of Rs 327.50 over its previous close of Rs 299.40. Around 1.19 lakh shares changed hands today on BSE, which was more than double the two-week average volume of 57,000 shares. Turnover on the counter stood at Rs 3.80 crore, commanding a market capitalisation (m-cap) of Rs 6,136.58 crore. The scrip has slipped 2.15 per cent in a year and gained 17.80 per cent in 2023 so far. There were 28,368 sell orders today against buy orders of 27,552 shares.

Today's sharp movement in the share price came after Sterling and Wilson, in an exchange filing, said it has emerged as the successful bidder for a package comprising 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.

At today's high price of Rs 326.45, the stock traded 27.89 per cent higher than its 52-week low of Rs 255.25, hit on December 26 last year. That said, the counter has declined 18.39 per cent from its one-year high of Rs 400, touched on April 28, 2022.

The total bid value, including operation and maintenance for three years, would be Rs 2,100 crore, it added.

As per Trendlyne, the scrip has a one-year beta of 1.01, indicating average volatility on the counter.

The stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 60. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 21.65.

On the earnings front, the company narrowed its consolidated net loss to Rs 99.15 crore during the December 2022 quarter (Q3 FY23) against a net loss of Rs 428.78 crore in the year-ago period. The total income came at Rs 417.65 crore in Q3 FY23 compared to Rs 1,502.23 crore during the corresponding period of the previous year.

Sterling & Wilson Renewable Energy provides engineering, procurement and construction (EPC) services for utility-scale solar, floating solar and hybrid and energy storage solutions. As a diversified renewable solutions provider, the company has a presence in 28 countries.

As of December 2022, promoters held a 72.73 per cent stake in the company.

Meanwhile, Indian equity benchmarks traded higher in late-morning deals, led by gains in banks, financials, consumer durables and energy stocks.

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