Sterlite Technologies Limited manufactures and sells connectivity and network solutions in India and internationally. More Details
Exceptional growth potential with proven track record and pays a dividend.
Share Price & News
How has Sterlite Technologies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STLTECH is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: STLTECH's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: STLTECH exceeded the Indian Communications industry which returned 45.6% over the past year.
Return vs Market: STLTECH exceeded the Indian Market which returned 61.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Sterlite Technologies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
12 hours ago | Simply Wall StAn Intrinsic Calculation For Sterlite Technologies Limited (NSE:STLTECH) Suggests It's 40% Undervalued
2 weeks ago | Simply Wall StWhat Type Of Shareholders Make Up Sterlite Technologies Limited's (NSE:STLTECH) Share Registry?
1 month ago | Simply Wall StSterlite Technologies (NSE:STLTECH) Will Pay A Smaller Dividend Than Last Year
Is Sterlite Technologies undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STLTECH (₹271.65) is trading below our estimate of fair value (₹450.41)
Significantly Below Fair Value: STLTECH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STLTECH is poor value based on its PE Ratio (27.9x) compared to the Indian Communications industry average (27.3x).
PE vs Market: STLTECH is poor value based on its PE Ratio (27.9x) compared to the Indian market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: STLTECH is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: STLTECH is overvalued based on its PB Ratio (5.4x) compared to the IN Communications industry average (2.3x).
How is Sterlite Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STLTECH's forecast earnings growth (33.5% per year) is above the savings rate (6.8%).
Earnings vs Market: STLTECH's earnings (33.5% per year) are forecast to grow faster than the Indian market (18.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STLTECH's revenue (22.4% per year) is forecast to grow faster than the Indian market (12.6% per year).
High Growth Revenue: STLTECH's revenue (22.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STLTECH's Return on Equity is forecast to be high in 3 years time (29.3%)
How has Sterlite Technologies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STLTECH has high quality earnings.
Growing Profit Margin: STLTECH's current net profit margins (7.3%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: STLTECH's earnings have grown by 11% per year over the past 5 years.
Accelerating Growth: STLTECH's earnings growth over the past year (26.4%) exceeds its 5-year average (11% per year).
Earnings vs Industry: STLTECH earnings growth over the past year (26.4%) underperformed the Communications industry 40.6%.
Return on Equity
High ROE: STLTECH's Return on Equity (17.8%) is considered low.
How is Sterlite Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: STLTECH's short term assets (₹44.7B) do not cover its short term liabilities (₹44.7B).
Long Term Liabilities: STLTECH's short term assets (₹44.7B) exceed its long term liabilities (₹15.2B).
Debt to Equity History and Analysis
Debt Level: STLTECH's debt to equity ratio (124.4%) is considered high.
Reducing Debt: STLTECH's debt to equity ratio has reduced from 148.6% to 124.4% over the past 5 years.
Debt Coverage: STLTECH's debt is well covered by operating cash flow (24.6%).
Interest Coverage: STLTECH's interest payments on its debt are well covered by EBIT (3.4x coverage).
What is Sterlite Technologies's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STLTECH's dividend (0.74%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).
High Dividend: STLTECH's dividend (0.74%) is low compared to the top 25% of dividend payers in the Indian market (1.48%).
Stability and Growth of Payments
Stable Dividend: STLTECH's dividend payments have been volatile in the past 10 years.
Growing Dividend: STLTECH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.5%), STLTECH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STLTECH's dividends in 3 years are forecast to be well covered by earnings (27.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anand Gopaldas Agarwal (54 yo)
Dr. Anand Gopaldas Agarwal serves as Group Chief Executive Officer of Sterlite Technologies Limited since 2003. Dr. Agarwal served as the Chief Operating Officer of Sterlite Technologies Limited was respon...
CEO Compensation Analysis
Compensation vs Market: Anand Gopaldas's total compensation ($USD1.49M) is above average for companies of similar size in the Indian market ($USD420.70K).
Compensation vs Earnings: Anand Gopaldas's compensation has been consistent with company performance over the past year.
Experienced Management: STLTECH's management team is considered experienced (4.1 years average tenure).
Experienced Board: STLTECH's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STLTECH insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sterlite Technologies Limited's company bio, employee growth, exchange listings and data sources
- Name: Sterlite Technologies Limited
- Ticker: STLTECH
- Exchange: NSEI
- Founded: 1988
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: ₹107.839b
- Shares outstanding: 397.20m
- Website: https://www.stl.tech
Number of Employees
- Sterlite Technologies Limited
- Godrej Millennium
- 4th Floor
Sterlite Technologies Limited manufactures and sells connectivity and network solutions in India and internationally. It offers optical fiber cables, specialty cables, glass preforms, and optical interconn...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/21 15:30|
|End of Day Share Price||2021/09/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.