Sterling and Wilson gains for eighth straight day; stock up 44% in 8 days

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Shares of Sterling and Wilson Solar gained for the eighth straight session, frozen in 5 per cent upper circuit at Rs 230.60 on the BSE on Wednesday, after the company’s US-based subsidiary was awarded its largest solar project in the United States of America worth $ 99 million (around Rs 747 crore).

The stock has rallied 44 per cent in the last eight trading days from the level of Rs 160 on June 19, 2020. Till 11:33 am, a combined around 40,000 shares have changed hands and there were pending buy orders for 620,000 shares on the NSE and BSE.

On Friday, June 26, Sterling and Wilson Solar Solutions, Inc (SWSS), the US subsidiary of Sterling and Wilson Solar, announced that it has been awarded a $99 million contract to construct a 194 MW project in the United States of America. It is being developed by a leading sustainable energy company, and will be co-located in an area that has substantial wind development in operation.

The construction for the project will commence in September 2020 and will be commissioned by November 2021. SWSS will manage the entire turn-key execution for the PV project, and once commercially operational, the plant will produce enough solar energy to power over 35,000 homes, saving approximately 275,000 metric tons of carbon emissions. The plant will be utilizing bifacial technology to increase production of power density, it said.

"With the Covid-19 situation relatively stabilizing globally and our existing order book pipeline, along with the foreseeable future business, the management expects that the turnover and profitability in the current year will be better than last fiscal," the company said.

The company’s order inflows for FY20 increased by 15 per cent y-o-y to Rs 9,048 crore despite the challenging fourth quarter of the financial year. The company’s focus and efforts in Australia over the last couple of years helped win three orders aggregating to 804 MWp, it said.

Sterling and Wilson Solar, a Shapoorji Pallonji group company, is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider. The company debuted on the stock market debut in August 2019. It raised Rs 3,100 crore through public offer by issuing shares at Rs 780 per share.

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