Buy Sterling and Wilson; target of Rs 870: Anand Rathi

Anand Rathi's research report on Sterling and Wilson

A pure-play global solar EPC and O&M service provider, Sterling & Wilson’s record Q2 orderbook of Rs105bn and the upgraded credit rating will help it achieve its FY25 revenue target of Rs80bn. Further, RIL’s plan to set up a 100GW RE capacity (predominantly solar and battery storage) by 2030 to meet its net-zero goal could offer EPC opportunities of Rs1.1trn over FY26-31 (opportunity of ~Rs300bn in EPC for the company; ~Rs24bn in O&M services).

Outlook

We maintain our estimates and retain a Buy rating with an unchanged TP of Rs870.

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