We remain positive on the company and maintain our buy rating on the stock with target price of Rs 400 per share.
Sterlite Technologies (STL) is a global technology player focused on designing, building, and managing smart data networks for its
customers. They offer high-quality optical communication products, system integration services, and software services with three state-of-
the-art manufacturing facilities and two software development centers across India, China, and Brazil.STL is in expansion mode and targeting to reach 50mn fkm of fibre capacity by June-19. As fibre business higher margin than service, increase
in higher share of fibre revenue will ensure strong earnings growth.
The company has reported a growth of 39 percent in revenues at Rs 1,084 crores in Q2-FY19 as against Rs779 crore in Q2-FY18.
and manage the Indian Navy’s digital network.
applications.On guidance front, the management continues to maintain USD 100 million profit guidance for FY20 and expect current growth momentum
to continue as there is huge expansion in demands in next few years owing to global rollout of 5G network and increase in data related capex.
On capex front the company plans to incur Rs 1,000 crores over next two years to augment its capacity and efficiency.We remain positive on the company and maintain our buy rating on the stock with target price of Rs 400 per share.