Sterling and Wilson Renewable Energy’s share price has recently dropped significantly, falling 23.5% over the past month. This decline is primarily attributed to the promoters selling a substantial stake in the company, which has raised concerns among investors about the company’s future prospects. On September 28, 2024, the promoters sold shares worth Rs 1 billion, with Shapoorji Pallonji holding a 12.7% stake and Khurshed Yazdi Daruvala holding 1.5% as of June 30, 2024.
The ongoing reduction of promoter holdings—from 69% in June 2023 to 52.9% by June 2024—has exacerbated investor anxiety, leading to further selling pressure. Promoters typically have insider knowledge of a company’s value, so their stake sales can signal a lack of confidence in future growth.
Despite these challenges, Sterling and Wilson is focusing on expanding its operations and maintaining a strong presence in both domestic and international markets. The company aims to achieve Rs 80 billion in revenue this fiscal year and is optimistic about growth in solar installations due to increasing demand for renewable energy and government initiatives.
The company’s financial health remains robust, with decreasing net debt and a growing operations and maintenance (O&M) portfolio, which is expected to provide stability over the next 12-18 months.
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