Please refer to important disclosures at the end of this report
Sterlite Technologies Limited (STL) is primarily engaged in the business of telecom
products and solutions. The Company is engaged in the business of fiber optical
cable, optical fiber, copper telecom cables and fiber optical cable laying services.
The volume growth momentum is expected to continue further due to robust
demand for Optical Fiber (OF) and Optical Fiber cable (OFC) in the global
market as new networks are laid out for transformation from 3G to 4G and
increasing number of data centers which are closer to point of consumption. As
far as domestic markets are concerned, company is confident of order inflows on
account of National Optical Fibre Network (NOFN) project, Defense projects
(NFS), non-spectrum capex by telecos and improving software business. The
company has executed 7,000Mn worth orders in Q3FY17 and added IN
10,000Mn worth new orders. The order inflow momentum is sustainable due to
healthy demand environment and also management expects annual
maintenance revenue of ~INR 850Mn from completed smart city projects by STL.
It is expected that the company would deliver a consistent performance in the
coming quarter and FY18 on the back of speedy execution of order book, pick-
up in network capex by telecos, robust domestic and global demand and ne
order wins in product, services and software business. The company has guided
that it has no plans of increasing debt levels going further and has seen an
reduction in debt which is a great sign moving ahead. The Company has been
maintaining a healthy dividend payout of 23.78%. The company has a health
RoE of 22.2% of FY16 earnings. Hence Buy.
CMP `122
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 54.5
MF / Banks / Indian Fls 14.1
FII / NRIs / OCBs 6.8
Indian Public / Others 24.6
Abs. (%) 3m 1yr 3yr
Sensex (1.4) 13.2 31.1
Sterlite Tech. 13.7 82.8 544.4
Reuters Code STTE.BO
BSE Sensex 27,708
Nifty 8,603
Face Value (`)
Telecom Services
Market Cap (` cr) 4,848
52 Week High / Low 125/70
Avg. Daily Volume 190,696
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Sterlite Technologies
Others | Telecom
January 27, 2017
Sterlite Technologies | Telecom
January 27, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Sterlite Technologies
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15