Name: Latest research reports of Sterlite Technologies Ltd. authored by ICICI Securities Limited and published by - Trendlyne research reports.
Item: Sterlite Technologies Ltd.
Rating: 3
Author: ICICI Securities Limited

Sterlite Technologies

Hold: Sterlite Technologies Ltd.

Recommendation Target

ICICI Securities Limited

The demand outlook for OF/OFC is strong, notwithstanding, recent pricing pressure, riding mainly on 5G, FTTx expansion and government initiatives for digital connectivity. However, the Chinese incident reflects the underlying lack of pricing power or commodity nature of the industry. With China's huge market share of ~50% in OF demand, the rub-off effect of pricing in other geographies cannot be ruled out. Moreover, huge capacity addition across the globe clouds the overall pricing outlook for OF/OFC. Therefore, we cut our revenue estimates for H2FY20 and FY21....