Check Before You Invest : Sterlite Technologies Ltd

Q: Which industry/sub-sector does Sterlite Technologies Ltd belong to?

Sterlite Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.

Q: Is Sterlite Technologies Ltd a good quality company?

Sterlite Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Sterlite Technologies Ltd undervalued or overvalued?

Sterlite Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 327.96, Historic Median: 25.21. Price to Book, Current: 8.1, Historic Median: 2.83. Price to Sales, Current: 3.87, Historic Median: 1.13. EV to EBITDA, Current: 31.64, Historic Median: 13.92

Q: Is Sterlite Technologies Ltd a good buy now?

Sterlite Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Sterlite Technologies Ltd?

Sterlite Technologies Ltd revenue growth is -2.1% for FY-2025, which is above its 5-year CAGR of -4.96%, indicating faster growth.

Q: Gross Profit margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.3% for FY-2025, which is below its 5-year median of 8.9%, indicating decreasing margins.

Q: Operating Profit Margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.41% for FY-2025, which is below its 5-year median of 12.23% indicating decreasing margins.

Q: Net Profit Margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Net Profit Margin is -1.8% for FY-2025, is below its 5-year median of 2.7%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 5.3, Historic Median: 8.9. Operating Profit Margin (%), Current: 10.41, Historic Median: 12.23. Net Profit Margin (%), Current: -1.8, Historic Median: 2.7

Q: Return on Asset of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Return on Asset is -1.06%, which is below its 5-year historical median of 1.75%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Return on capital employed is 3% for FY-2025, which is below its 5-year historical median of 8.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Sterlite Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Sterlite Technologies Ltd belong to?

Sterlite Technologies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.

Q.2 Is Sterlite Technologies Ltd a good quality company?

Sterlite Technologies Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sterlite Technologies Ltd undervalued or overvalued?

Sterlite Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	327.96	25.21
Price to Book	8.1	2.83
Price to Sales	3.87	1.13
EV to EBITDA	31.64	13.92

Q.4 Is Sterlite Technologies Ltd a good buy now?

Sterlite Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Sterlite Technologies Ltd?

Sterlite Technologies Ltd revenue growth is -2.1% for FY-2025, which is above its 5-year CAGR of -4.96%, indicating faster growth.

Q.2 Gross Profit margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.3% for FY-2025, which is below its 5-year median of 8.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.41% for FY-2025, which is below its 5-year median of 12.23% indicating decreasing margins.

Q.4 Net Profit Margin of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Net Profit Margin is -1.8% for FY-2025, is below its 5-year median of 2.7%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	5.3	8.9
Operating Profit Margin (%)	10.41	12.23
Net Profit Margin (%)	-1.8	2.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Return on Asset is -1.06%, which is below its 5-year historical median of 1.75%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Return on capital employed is 3% for FY-2025, which is below its 5-year historical median of 8.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Return on equity is -3.61% for FY-2025, which is below its 5-year historical median of 7.55%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Cash conversion cycle is 39 days, above its 5-year historical median of 15 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.59	0.63
ROE (%)	-3.61	7.55
ROCE (%)	3	8.66
Cash Conversion Cycle	39 days	15 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Debt-to-Equity ratio is 0.92, which is above the industry average of 0.52, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sterlite Technologies Ltd?

Sterlite Technologies Ltd Debt to cash flow from operations is 5.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sterlite Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Sterlite Technologies Ltd?

Promoters hold 44.44% of the Sterlite Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sterlite Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sterlite Technologies Ltd vs industry peers?

Sterlite Technologies Ltd revenue CAGR is -4.96%, compared to the industry median CAGR of 4.57%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-2.1	4.6
Gross Profit Growth (%)	-10.2	21.7
Operating Profit Growth (%)	-9.8	18.6
Net Profit Growth (%)	0	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.59	1.18
ROE (%)	-3.61	9.33
ROCE (%)	3	13.25
Cash Conversion Cycle (days)	39.36	90

Valuation & price assessment

Q.1 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	327.96	25.21	28.85
Price to Book	8.1	2.83	2.59
Price to Sales	3.87	1.13	1.29
EV to EBITDA	31.64	13.92	12.65

Q.2 Stock return of Sterlite Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	15.8%	10.6%	30.9%	511.8%

Q.3 Valuation ratios of Sterlite Technologies Ltd vs historical?

The current P/E ratio of 327.96 is higher than its historical median of 25.21, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Sterlite Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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