Sterlite Technologies Ltd Stock Analysis

BSE: 532374 | NSE: STLTECH | Cable | Mid Cap

BSE Share Price Jul 06, 18:01
144.90 0.95 (0.66%)

DeciZen - Make an Informed Decision on Sterlite Technologie

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Sterlite Technologies Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sterlite Technologies Ltd is a average quality company.

2. Is Sterlite Technologies Ltd undervalued or overvalued?

The key valuation ratios of Sterlite Technologies Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sterlite Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Sterlite Technologies Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sterlite Technologie:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 6.6%7.1%6.6%7.8%10.5%12.7%15.6%22.5%18%9.9%-
Value Creation Index -0.5-0.5-0.5-0.4-0.3-0.10.20.70.3-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,7273,3542,7263,0302,0282,2562,8654,8634,7614,1425,021
YoY Gr. Rt. %-23%-18.7%11.1%-33.1%11.3%27%69.7%-2.1%-13%-
Adj EPS 1.21.31.31.84.63.96.313.311.66.22.1
YoY Gr. Rt. %-8.1%-3%38.8%156.4%-14.6%61%110.3%-12.6%-46.5%-
BVPS (₹) 29.23030.931.422.121.426.238.744.145.546.3
Adj Net Profit 48.552.250.770.618115625353446824682
Cash Flow from Ops. 338279263255128420595592591468-
Debt/CF from Ops. 23.856.67.12.522.63.24.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.8%15.4%13.1%-13%
Adj EPS 19.7%6.2%-0.5%-46.5%
BVPS 5.115.520.23
Share Price 15.1% -1.4% -5.6% -48.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 4.44.54.25.71717.726.140.227.613.64.5
Op. Profit Mgn % 7.67.59.310.91917.219.920.720.216.78.5
Net Profit Mgn % 1.81.61.92.38.96.98.8119.861.6
Debt to Equity 0.60.91.11.411.31.111.11.20.5
Working Cap Days 192174250209248202195196256308298
Cash Conv. Cycle 59282924466343-15-40-160

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 13.07%

Sales growth is good in last 4 quarters at 25.66%

Return on Equity has declined versus last 3 years average to 4.50%

Net Profit has been subdued in last 3 years -0.53%

Debt to equity has increased versus last 3 years average to 1.20

Latest Financials - Sterlite Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 2.1 1.6
TTM Sales (₹ Cr.) 5,021 5,754
BVPS (₹.) 46.3 49.2
Reserves (₹ Cr.) 1,763 1,877
P/BV 3.11 2.93
PE 70.01 92.44
From the Market
52 Week Low / High (₹) 136.25 / 318.00
All Time Low / High (₹) 4.90 / 414.50
Market Cap (₹ Cr.) 5,727
Equity (₹ Cr.) 79.6
Face Value (₹) 2
Industry PE 29.1

Management X-Ray of Sterlite Technologie :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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News

About Sterlite Technologies Ltd

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.
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