ICICI Direct has given Hold recommendation for Sterlite Technologies with a target price of Rs. 295 in its research report issued on Jul 23, 2021
ICICI Direct’s research report on Sterlite Technologies
Sterlite Technologies (STL) is a leading telecommunication infrastructure player with offerings in optical fibre and cables, hyper-scale network design & deployment and network software. STL has announced a fresh capex of Rs 200 crore to set up 9 mn Fkm optical fibre cable plant in the US and UK. Consequently, its overall optical fibre cable capacity is expected to expand from 33 mn Fkm to 42 mn Fkm On the financial front, it aims to reach Rs 10000 crore revenue run rate by Q4FY23 along with net debt/equity < 0.5 and RoCE > 20%
We maintain HOLD on the stock as we await improvement in leverage and sustainability of growth We value STL at Rs 295 (Rs 280, earlier), at 18x FY23 P/E.