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Sterlite Technologies Ltd. Stock Analysis

Mid Cap
Evaluated by 3082 users | BSE: 532374 | NSE: STRTECH |
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.It has headquarter located in...

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 16.7% 9.3% -16.2% 25%
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 54.76%
Institutions 10.02%
Non-Institutions 35.22%
Pledged *35.9796.6896.6896.670.000.000.000.000.000.00
* 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 9.3% 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 6.7% 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

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 over 60 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.

Products

It has expanded it 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

  • STL was awarded certificate of achievement at Fast 50 India and Fast 500 Asia Pacific Awards during 2005-2007.
  • Sterlite won Dun & Bradstreet Award for Corporate Excellence 2007 in Telecom Equipment segment.
  • The company won IEEMA Certificate of Appreciation for Best New Product Award 2007 for AL-59 alloy conductors.

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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