Reliance-backed Solar stock hits upper circuit, Revenue skyrocketed by 1,200 per cent Q4 while debt reduced by 75 per cent; must watch

The shares of the company have delivered a return of over 150 per cent to its shareholders in just 1 year.

This Small-Cap renewable energy company is one of the leading end-to-end solar engineering, procurement, and construction (EPC) solutions providers globally. It is also engaged in the operation and maintenance (O&M) of solar power projects. The company is backed by the strong parentage of Reliance Industries.

At the start of the day's trading session, the stock opened at Rs 739 per share, compared to the previous day's closing figure of Rs 704.05 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 739.25 per share on the BSE. The stock has reached the upper circuit price limit of 5 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers.

Recently, the company’s stock hit an all-time high, crossing its IPO listing day high price, which was in August 2019. During the COVID-19 fall when the markets were facing a significant downturn, the stock hit an all-time low of Rs 69.75 per share. From this point, the stock has reached an all-time high today and started trading at all-time high levels. It has great potential to deliver multibagger returns in the future. The current market capitalisation of Sterling & Wilson Renewable Energy stands at Rs 17,241 crore, and the stock has generated an impressive multibagger return of around 156 per cent in the past year. 

Also read Turnaround Story: 8,000 per cent returns, SOLAR stock hits upper circuit with heavy volumes; Posted profits after 4 years!

Financial Performance

As per Quarterly Results in Q4 FY24 Sterling & Wilson Renewable Energy reported revenue of Rs 1,178 crore, representing a year-on-year growth of 1,232 per cent from Rs 88.43 crore last year. The company posted an operating profit of Rs 29.35 crore, compared to a net profit of Rs 352 crore last year. The company’s net profit stood at Rs 1.40 crore in Q4 FY24. Turning attention to the annual performance of the company, it reported a revenue of Rs 3035 crore, compared to Rs 2015 crore in FY23. The company reported a net loss of Rs 211 crore in FY24.

In March 2024, the promoters' share stood at 52.99 per cent, while FIIs held 10.50 per cent and DIIs held 10.64 per cent during the same period. Reliance New Energy Limited held around 32.54 per cent as per the March 2024 update.

Investors must keep this small-cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.