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Sterlite Technologies Ltd Stock Analysis

Mid Cap
Evaluated by 3194 users | BSE: 532374 | NSE: STLTECH |
Cable

Sterlite Technologies (STL) was incorporated in 2000 under the name Sterlite Optical Technologies. The company’s business activities involve manufacturing of telecommunication cables. Later in the year 2007 the name was changed to Sterlite Technologies....

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sterlite Technologies Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.87%6.64%7.13%6.6%7.79%10.54%12.72%15.57%22.45%17.99%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,2632,7273,3542,7263,0302,0282,2562,8654,8634,761
Y-o-Y Gr. Rt.-20.6%23%-18.7%11.1%-33.1%11.3%27%69.7%-2.1%
Adjusted EPS (Rs.) 3.951.231.331.291.794.593.926.3113.2711.6
Y-o-Y Gr. Rt.--68.9%8.1%-3%38.8%156.4%-14.6%61%110.3%-12.6%
Book Value per Share (Rs.) 28.2229.153030.931.422.1421.3826.1538.7244.13
Adjusted Net Profit 14148.552.250.770.6181156253534468
Net Op. Cash Flow (Rs. Cr.) 73.8338279263255128420595592623
Debt to Cash Flow from Ops 8.41.973.8356.637.082.541.952.583.01
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sterlite Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.6%9.5%28.3%-2.1%
Adjusted EPS 12.7%45.3%43.6%-12.6%
Book Value per Share 5.1727.314
Share Price 21.4% 19.6% -11.9% 164.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.424.444.484.225.7416.9717.726.0540.1727.57
Operating Profit Margin (%) 11.757.567.539.2910.8618.9917.219.9120.6720.21
Net Profit Margin (%) 6.221.781.561.862.338.946.938.8310.989.84
Debt to Equity 0.620.580.911.081.371.041.251.110.981.05
Working Capital Days 209192174250209248202195196256
Cash Conversion Cycle 6759282924466343-15-40
Entity Percentage Holding
Promoters 54.46%
Institutions 13.74%
Non-Institutions 31.80%
Pledged *96.6896.670.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Sterlite Technologies Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Sterlite Technologies Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Sterlite Technologies Ltd's performance infers:

Sterlite Technologies Ltd earnings have grown by 45.3%, whereas share price has appreciated 19.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sterlite Technologies Ltd share prices over the last 10 years. Here is what we found out:

Sterlite Technologies Ltd share price has appreciated 12.7% annually over the past ten years.

Sterlite Technologies (STL) was incorporated in 2000 under the name Sterlite Optical Technologies. The company’s business activities involve manufacturing of telecommunication cables. Later in the year 2007 the name was changed to Sterlite Technologies. It has headquarter located in Pune, eight manufacturing units across India and 10 sales and marketing offices in India, China, Thailand, Russia, U.K. and South Africa. In India Sterlite is a market

Sterlite Technologies (STL) was incorporated in 2000 under the name Sterlite Optical Technologies. The company’s business activities involve manufacturing of telecommunication cables. Later in the year 2007 the name was changed to Sterlite Technologies. It has headquarter located in Pune, eight manufacturing units across India and 10 sales and marketing offices in India, China, Thailand, Russia, U.K. and South Africa. In India Sterlite is a market leader. It sells its telecom and power products to many countries, due to this its export, sales account for about 30% of the company’s net revenues. It has received various certifications such as OHSAS 18001:1999 and TL 9000 for management system and ISO 14001:2004 Environment Management System.

Business area of the company

The company is an industry-leading integrator of digital networks. It has expanded its portfolio to manufacture and supply of Optical Fibers, Fiber Optic Cables, Power Transmission Conductors, Aluminum & Alloy Rods, Copper Telecom Cables, Structured Data Cables, and Customer Premise Equipment and Cable Accessories. It caters products to various sectors such as telecom, defense, oil and gas, railway, roadways, power, aviation and broadband.

Awards

  • 2013: Frost & Sullivan - IMEA Manufacturing Excellence Award; Silver Certification
  • 2013: ML100 (Manufacturing Leadership 100) - IT leadership
  • 2014: Top Telecom Cable Company 2013
  • 2014: Best Innovation in Fibre Infrastructure 2013
  • 2015: Top 25 Innovative Organisations of India - CII
  • 2015: STL wins prestigious Frost & Sullivan Indian Manufacturing Excellence Gold Award 2015
  • 2015: AEGIS GRAHAM BELL AWARD
  • 2016: STL features among '100 Best Companies to work for Women in India
  • 2016: STL wins Telecom Leadership Forum Awards for transforming the Broadband infrastructure space
  • 2016: STL wins 2 Frost & Sullivan 2016 Awards
  • 2016: STL won Maharashtra Times CSR Award
  • 2017: STL Wins CII-ITC Sustainability Award 2017 for Excellence in Corporate Social Responsibility
  • 2017: STL wins the Jury Commendation Award for CSR in water-management in Aurangabad
  • 2017: STL wins Civic Award Under Social Development Category
  • 2017: Felicitation by the Times Group for CSR in Water Management
  • 2017: STL won Indian International CSR Excellence Awards
  • 2017: Certificate of Merit awarded to STL at the first ever UN-GCNI Best Practices Awards
  • 2017: STL won Amity Global Business School CSR Award for Best CSR Practices
  • 2017: STL wins the Lokmat Corporate Excellence Award for Best CSR Practices
  • 2017: STL wins Aegis Graham Bell Award for ‘Innovation in Telecom Infra
  • 2018: STL wins ELSC Supply Chain Collaboration Award
  • 2018: STL wins “Best-In-Class Cross-Functional Teamwork Project” Award
  • 2018: STL and BSNL jointly win the “Best Wi-Fi Monetisation Solution” award
  • 2018: STL wins the Forbes China Award
  • 2018: STL wins the Golden Peacock National Quality Award for quality excellence
  • 2018: STL's Neox Smart City and Enterprise solution is selected as the “Best Smart Network Solution” by Digital Terminal
  • 2018: STL wins recognition at the Frost & Sullivan and TERI Sustainability 4.0 Awards 2018
  • 2019: Brand Revitalization
  • 2019: Marketing Communication B2B
  • 2019: Prestigious UiPath Automation Excellence Awards 2019
  • 2019: Best Employer Brand Awards 2019
  • 2019: Frost & Sullivan 2019 India Best Practices for Converged Network Solution
  • 2019: Telecom Leadership Forum honoured STL with Network Infra Innovation Award
  • 2019: In Citizen Networks, STL bagged top honour at TLF India 2019 Awards
  • 2019: STL has won Voice&Data Telecom Leadership Forum Biz and Tech Award
  • 2019: STL wins ELSC Supply Chain Collaboration Award
  • 2020: STL’s dTelco adjudged as a ‘Winner’ in the OSS/BSS Transformation Excellence category at InformaTech 2020 Glotel Awards.
  • 2020: Marketing Professional of the year 2020 - CMO Asia
  • 2020: Green Tech CSR Award
  • 2020: Best Organization for Woman Empowerment
  • 2020: Innovative Leader Communication, Media & Entertainment (CME) Category' at the 'Business Impact Awards 2020
  • 2020: Asia-Pacific Converged Network Solutions Product Leadership Award by Frost & Sullivan
  • 2020: Best WiFi Infrastructure Provider
  • 2020: British Safety award
  • 2020: Bags Corporate Behaviour Based Safety (BBS) Award

Milestones

  • 1988: Commencement of copper telecom cables business.
  • 1993: Commencement of fiber optic cables business.
  • 1995: Commencement of optical fiber business
  • 2000: Demerger from Sterlite Industries and listing on BSE & NSE
  • 2004: Commencement of data cables business.
  • 2005: Commencement of systems and solutions business
  • 2006: Acquisition of power conductor's business
  • 2010: Commencement of OPGW cables business.
  • 2011: Commencement of power infrastructure business
  • 2013: Sterlite Technologies Ltd has informed regarding a titled ''Sterlite Technologies receives new orders pegged at around Rs. 630 Crores''
  • 2013: Sterlite Technologies Ltd has informed regarding a titled ''Sterlite Technologies launches enhanced family of bend-insensitive fibers''
  • 2013: 'Sterlite Technologies enters into joint venture with Conduspar Condutores Eletricos to manufacture optical fiber cable in Brazil''
  • 2013: 'Sterlite Grid wins two more power transmission projects''.
  • 2014: 'Sterlite Grid commissions two lines and two substations of the Bhopal - Dhule Transmission project''
  • 2014: Sterlite Technologies Ltd has informed regarding a titled ''Sterlite Grid has been awarded a power transmission project to deliver over 1000 MWs of electricity from Punjab to the Kashmir Valley.'' -''Sterlite Grid completes India's First Ultra Mega Power Transmission Project''
  • 2014: 'Sterlite Technologies enters into a Joint Venture with VISCAS to manufacture Extra High Voltage Cables in India''
  • 2014: 'Sterlite Technologies to implement end-to-end rollout of Optical Fiber Network for Defense services''
  • 2014: 'Sterlite Technologies successfully tests multi-terabit data transmission over long haul network''.
  • 2015: Sterlite Technologie - Sterlite Grid announces successful refinancing of India's first Ultra Mega Transmission Project, ENICL -Ericsson to work with Sterlite for smart city initiatives
  • 2015: Sterlite Technologie - Sterlite Commissions First 765 kV Transmission Project in Private Sector -Sterlite to set up LCD manufacturing plant
  • 2015: Sterlite Grid's Jabalpur Transmission Project to Boost Power Access
  • 2015: Sterlite acquires telecom software company Elitecore Sterlite Technologies Ltd. the Registered Office of the Company is shifted from Survey No 68/1, Rakholi Village, Madhuban Dam Road, Silvassa, Dadra & Nagar Haveli 396 230 to E 1, MIDC Industrial Area, Waluj, Aurangabad, Maharashtra 431 136.
  • 2015: Sterlite Grid and Burns & McDonnell join hands to introduce world class engineering and construction methodologies in Power Transmission Projects.
  • 2016: Sterlite Tech wins second smart city project in Jaipur -Sterlite Technologies launches Sterlite Academy
  • 2016: Sterlite Tech features among '100 Best Companies to work for Women in India
  • 2016: Sterlite Tech wins Telecom Leadership Forum Awards for transforming the Broadband infrastructure space
  • 2016: Sterlite Tech wins 2 Frost & Sullivan 2016 Awards
  • 2017: Sterlite Tech won the Wireless Broadband Alliance (WBA) Industry Award 2017 for the successful deployment of India's First Live Smart Services City in Gandhinagar, Gujarat.
  • 2018: STL acquired Metallurgica Bresciana- an Italian specialized optical cable manufacturer.
  • 2019: Building one of the world’s largest Greenfield semiconductor-grade optical fibre perform plants - Gauav, in Aurangabad India.
  • 2019: Acquisition of UK based impact data solution (IDS) to strengthen design and development offerings for hyper scale data centers.
  • 2019: Strategic partnerships with various entities like TIP, ONAP, O-RAN, and ONF to create higher-speed, lower cost, more secure, programmable, and more reliable networks for the future.
  • 2020: The company made strategic investment in ASOCS - a developer of open, disruptive, and virtualized Radio Access Network (vRAN) solutions, delivering 4G and 5G for cellular networks.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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