Get App
Last Updated : Sep 18, 2018 03:15 PM IST | Source:

Buy Sterlite Technologies; target of Rs 425: Edelweiss

Edelweiss bullish on Sterlite Technologies has recommended buy rating on the stock with a target price of Rs 425 in its research report dated July 19, 2018.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Edelweiss' research report on Sterlite Technologies

Sterlite Technologies (Sterlite) reported strong Q1FY19 numbers— revenue jumped 17.8% YoY (Street estimate 22.5%) and EBITDA margin expanded 190bps QoQ to 27.9% (Street estimate 24.4%). This led to PAT catapulting 99.7% YoY to INR1.2bn. Key highlights: 1) OFC utilisation at over 90% & the Metallurgica Bresciana acquisition provides access to additional 3mn fkm capacity, which can be expanded to 5mn fkm; 2) management expects EBITDA margin to remain at 24-25% on higher utilisation & higher contribution of product business; 3) highest-ever order book—INR60.3bn, up ~92% YoY; 4) Metallurgica acquisition likely to expedite USD100mn plus net income target by FY20; and 5) INR35bn naval order to further bolster order book in Q2FY19.


We believe, Sterlite is well positioned to capture the robust global growth in fibre consumption. Maintain ‘BUY’ with TP of INR425 (25x FY20E EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Jul 24, 2018 05:05 pm
Follow us on
Available On
PCI DSS Compliant