Introduction
Sterling & Wilson Renewable Energy (SW Solar) hit an all-time high of ₹828 in May 2024, but since then, the stock has crashed over 60%. However, with Reliance Industries acquiring a 32% stake, a strong ₹9,000 crore order book, and India’s booming green energy sector, investors are hopeful that the stock could reclaim ₹800+ levels.
In this detailed analysis, we examine:
✅ SW Solar’s current performance
✅ Key reasons for the crash
✅ Recovery potential & growth triggers
✅ Analyst target prices (short & long term)
✅ Investment strategy for traders & investors
SW Solar Share Price: Current Performance
- Current Price: ₹308.45 (as of July 21, 2025)
- 52-Week High: ₹758.45
- 52-Week Low: ₹218.45
- 1-Year Return: -52.64%
- P/E Ratio: 68.51 (significantly higher than sector average)
Why Did the Stock Crash?
- Forex Losses: Currency fluctuations hurt profitability.
- Nigeria Project Delays: A major international solar project faced execution delays, hurting investor confidence.
- FII/DII Selling:
- FIIs reduced stake from 10.39% to 8.43%.
- DIIs cut holdings from 9.82% to 7.52%.
4 Reasons SW Solar Could Rebound
1. Reliance Industries’ Strategic Stake (32%)
- Reliance is now a promoter, providing funding stability and credibility.
- Expected to help secure large-scale solar EPC contracts in India & globally.
2. Strong ₹9,096 Crore Order Book
- 84% orders from India, 16% from international markets.
- Upcoming tenders (22-23 GW by Dec 2025): SW Solar may win 6 GW+ orders.
3. India’s Green Energy Boom
- Govt. target: 300 GW renewable energy by 2030 (only 100 GW achieved so far).
- SW Solar, a leading solar EPC player, stands to benefit.
4. Nigeria Project Progress
- Financial closure expected in the next 9 months.
- Will boost revenue & global market presence.
Analyst Targets: Can SW Solar Reach ₹800?
Short-Term (3-6 Months)
- Laxmishree Securities: Buy at ₹324, target ₹348.90.
- Break above ₹350 could push the stock to ₹441.
Medium-Term (1 Year)
- Average analyst target: ₹420 (36% upside).
- High estimate: ₹440
- Low estimate: ₹400
Long-Term (2-3 Years)
- If execution improves, ₹521 possible (50% retracement).
- ₹800+ possible only with consistent profits & new orders.
Investment Strategy
✅ Short-Term Traders:
- Buy near ₹320-350, target ₹441.
- Keep stop-loss below ₹300.
✅ Medium-Term Investors:
- Accumulate on dips (₹300-330), hold for ₹420-440.
✅ Long-Term Investors:
- SIP-style investment recommended (Reliance backing + sector growth).
⚠️ Risks:
- Further delays in Nigeria project.
- High P/E raises valuation concerns.
Verdict: Will SW Solar Reclaim ₹800?
While ₹441 is achievable soon, ₹800+ depends on:
✔ Strong quarterly earnings (next results: July 30).
✔ Nigeria project completion.
✔ New order wins in India’s solar push.
Reliance’s support & India’s green energy focus make SW Solar a high-potential stock.
Disclaimer: Not investment advice. Consult a financial advisor before investing.
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