Sterlite Technologies Ltd. share price target

SOTL has corrected 25% from its peak last month. Investors are concerned about three things: 1) a fall in spot optic fiber (OF) prices; 2) a slowdown in OF orders from China Mobile in 2018; and 3) any delay in 5G rollout globally. We spoke to SOTL management and found that it is confident on achieving the USD100m net profit target by FY20E. We maintain our Buy rating as we do not see any risk to our FY19-21 earnings forecasts amid rising data consumption globally. Stock is available at 16.3x PER/9.4x EV/EBITDA FY20E. The ongoing proliferation of data networks should keep the demand for SOTL's products/services intact. In addition, China contributes just 10% to SOTL's sales now....

Revenue came in at | 1084.3 crore, up 39.1% YoY, much ahead our expectations of | 962.8 crore. In terms of revenues breakup, product formed ~75% of the topline, with remaining being services. Exports formed 45% of the overall revenues. The revenues were boosted by...

Revenues came in at | 876.9 crore, up 17.8% YoY, slightly ahead our expectations of | 871.1 crore. In terms of revenue breakup, product formed ~77-78% of the topline, with the remaining being services....

ICICI Securities Ltd | Retail Equity Research Sterlite Technologies (Sterlite) has announced the signing of definitive agreements for acquisition of a European specialised optical fibre cable manufacturer Metallurgica Bresciana S.p.A (Metallurgica) in all cash deal for the total consideration of Euro 47 mn (| 367 crore), to be funded by...

Revenues came in at | 846.6 crore, up 19.7% YoY, slightly below our expectations of | 866.6 crore (22.6% YoY growth). The key driver of revenue growth continued to be exports, which formed ~60% of the...

The first phase of ongoing 50m KM capacity expansion will be completed by Dec'18. Optic fiber cable production is also ramping up with strong export sales. We see SOTL as a pure play on data consumption with clear business moat and high...

SOTL was announced lowest bidder a year ago. But was negotiating with the government for better terms. Government had to increase its budget allocation for this contract. We are bullish on SOTL's optic fiber business (75% of revenue). The capacity expansion...