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Sterlite Technologies

Market Cap

₹107.8b

Last Updated

2021/09/21 15:30 UTC

Data Sources

Company Financials +

Executive Summary

Sterlite Technologies Limited manufactures and sells connectivity and network solutions in India and internationally. More Details


Snowflake Analysis

Exceptional growth potential with proven track record and pays a dividend.


Similar Companies

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.


Market Performance


7 Day Return

-3.8%

STLTECH

-2.7%

IN Communications

-0.2%

IN Market


1 Year Return

86.8%

STLTECH

50.4%

IN Communications

64.1%

IN Market

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.


Shareholder returns

STLTECHIndustryMarket
7 Day-3.8%-2.7%-0.2%
30 Day3.7%5.6%7.6%
90 Day2.9%7.1%11.1%
1 Year88.1%86.8%50.9%50.4%66.4%64.1%
3 Year-11.8%-16.0%14.8%11.8%61.1%52.9%
5 Year255.0%232.3%220.5%208.8%97.7%82.6%

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

Valuation

Is Sterlite Technologies undervalued compared to its fair value and its price relative to the market?

39.7%

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).


Future Growth

How is Sterlite Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.5%

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%)


Past Performance

How has Sterlite Technologies performed over the past 5 years?

11.0%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Sterlite Technologies's current dividend yield, its reliability and sustainability?

0.74%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Anand Gopaldas Agarwal (54 yo)

18.67yrs

Tenure

₹109,516,000

Compensation

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.


Leadership Team

Experienced Management: STLTECH's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: STLTECH's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sterlite Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Sterlite Technologies Limited
  • Godrej Millennium
  • 4th Floor
  • Pune
  • Maharashtra
  • 411001
  • India

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/21 15:30
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.