Sterling and Wilson Renewable Energy shares slip into the red after surging nearly 6% in early trade

Shares of Sterling and Wilson Renewable Energy Ltd surged nearly 6 per cent on the BSE, touching the day’s high at Rs 315.55 apiece after 1.05 per cent equity shares, or 20 lakh shares, changed hands via multiple block deals in the pre-opening session. However, soon after, the stock pared gains, and in the afternoon session, it slipped into negative territory.

The civil construction company’s shares have lost over 56 per cent since listing. Sterling and Wilson Renewable Energy had made a weak stock market debut at Rs 691 per share in August 2019, which was an 11.4 per cent discount to the issue price of Rs 780.

At noon, Sterling and Wilson Renewable Energy's stock traded at Rs 297.55 apiece, down 0.18 per cent on the BSE. The last 52-week high made by the stock was on September 23, 2022. The scrip has lost around 4 per cent in the last two trading sessions.

Brokerage’s view

Nuvama has given a buy on Sterling and Wilson Renewable Energy for a target price of Rs 454 apiece, which translates to an upside of 52.3 per cent.

The brokerage is bullish on the stock as it believes that the long-term prospects are supercharged, given India’s inherent and rapidly growing "Sun & Sand" edge (lowest solar EPC cost), potentially catapulting the country to become the Middle East of green hydrogen (G H2) over time.

Sterling and Wilson Renewable Energy's share price history

So far in 2023, the stock has gained over 10 per cent to the Nifty50’s rise of nearly 3 per cent. In the past year, the stock has risen over 5 per cent against the headline index’s rise of over 20 per cent.

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