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Last Updated : Dec 31, 2018 12:13 PM IST | Source: Moneycontrol.com

Buy Sterlite Technologies with target of Rs 400: Anand Rathi

We remain positive on the company and maintain our buy rating on the stock with target price of Rs 400 per share.

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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.

The unexecuted order book stood at Rs 9,455 crore. This includes the Rs 3,500 crore multi-year system integration contract to design, build

and manage the Indian Navy’s digital network.

Metallurgica designs and manufactures special precision optical fiber cables and specialized copper cables for various communication

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.
First Published on Dec 31, 2018 12:13 pm
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