Sterling and Wilson Renewable Energy Ltd.
ISIN: INE00M201021 • Market Cap: ₹4,574 Cr
The 5-Pillar Quality Audit for Sterling and Wilson Renewable Energy Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (4.0%), Return on Capital Employed (43.3%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.80 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (34.5%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 45.7%, backed by 9.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 43.3%)
Sterling and Wilson Renewable Energy Ltd. generates exceptional return on capital employed of 43.3%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 34.5%)
Revenue has expanded at 34.5% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.80)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking SWSOLAR against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 55/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare SWSOLAR directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sterling and Wilson Renewable Energy Ltd. (SWSOLAR)Current | 55/100 | ₹4,574 Cr | — | 43.3% | 1.80 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Sterling and Wilson Renewable Energy Ltd.
Q:What is the 5-Pillar Fundamental Score for Sterling and Wilson Renewable Energy Ltd. (SWSOLAR)?
Sterling and Wilson Renewable Energy Ltd. has a RupeeTools Fundamental Score of 55/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (53/100), Financial Health (41/100), Growth (99/100), Valuation (15/100), and Ownership Quality (60/100).
Q:Is SWSOLAR fundamentally strong for long-term investment?
SWSOLAR currently holds a moderate quality rating of 55/100. While it operates in the Construction sector, investors should monitor its debt health before initiating long-term positions.
Q:Does SWSOLAR pass the Coffee Can Investing filter?
Yes! SWSOLAR satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does SWSOLAR compare against other Construction peers?
Within India's Construction sector, SWSOLAR trades at a P/E of — and generates an ROCE of 43.3%. Compare its 5-Pillar score of 55/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.