Sterlite Technologies Limited

NSEI:STLTECH Stock Report

Market Cap: ₹56.5b

Sterlite Technologies Valuation

Is STLTECH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STLTECH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STLTECH (₹115.52) is trading below our estimate of fair value (₹163.67)

Significantly Below Fair Value: STLTECH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STLTECH?

Key metric: As STLTECH is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for STLTECH. This is calculated by dividing STLTECH's market cap by their current revenue.
What is STLTECH's PS Ratio?
PS Ratio1.1x
Sales₹50.88b
Market Cap₹56.51b

Price to Sales Ratio vs Peers

How does STLTECH's PS Ratio compare to its peers?

The above table shows the PS ratio for STLTECH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.5x
532493 Astra Microwave Products
7.4x20.0%₹71.8b
504112 Nelco
6.4xn/a₹20.6b
532406 Avantel
15.6xn/a₹35.9b
VINDHYATEL Vindhya Telelinks
0.6xn/a₹23.1b
STLTECH Sterlite Technologies
1.1x21.0%₹56.5b

Price-To-Sales vs Peers: STLTECH is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (7.5x).

Price to Sales Ratio vs Industry

How does STLTECH's PS Ratio compare vs other companies in the IN Communications Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
VINDHYATEL Vindhya Telelinks
0.6xn/aUS$273.91m
BIRLACABLE Birla Cable
0.9xn/aUS$72.47m
SMARTLINK Smartlink Holdings
0.9xn/aUS$22.71m
531158 Catvision
0.7xn/aUS$1.71m
No more companies available in this PS range
STLTECH 1.1xIndustry Avg. 2.4xNo. of Companies4PS03.67.210.814.418+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: STLTECH is good value based on its Price-To-Sales Ratio (1.1x) compared to the Asian Communications industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is STLTECH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STLTECH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio5.7x

Price-To-Sales vs Fair Ratio: STLTECH is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (5.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst STLTECH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹115.52
₹140.00
+21.2%
21.4%₹170.00₹110.00n/a2
Nov ’25₹119.41
₹140.00
+17.2%
21.4%₹170.00₹110.00n/a2
Oct ’25₹121.97
₹146.50
+20.1%
16.0%₹170.00₹123.00n/a2
Sep ’25₹131.68
₹146.50
+11.3%
16.0%₹170.00₹123.00n/a2
Aug ’25₹136.11
₹140.00
+2.9%
21.4%₹170.00₹110.00n/a2
Jul ’25₹143.74
₹140.00
-2.6%
21.4%₹170.00₹110.00n/a2
Jun ’25₹126.55
₹140.00
+10.6%
21.4%₹170.00₹110.00n/a2
May ’25₹137.50
₹156.00
+13.5%
18.6%₹185.00₹127.00n/a2
Apr ’25₹123.20
₹156.00
+26.6%
18.6%₹185.00₹127.00n/a2
Mar ’25₹140.35
₹156.00
+11.2%
18.6%₹185.00₹127.00n/a2
Feb ’25₹142.35
₹156.00
+9.6%
18.6%₹185.00₹127.00n/a2
Jan ’25₹148.45
₹177.50
+19.6%
4.2%₹185.00₹170.00n/a2
Dec ’24₹148.10
₹185.00
+24.9%
6.6%₹200.00₹170.00n/a3
Nov ’24₹136.50
₹185.00
+35.5%
6.6%₹200.00₹170.00₹119.413
Oct ’24₹161.05
₹184.67
+14.7%
6.0%₹200.00₹174.00₹121.973
Sep ’24₹168.40
₹184.67
+9.7%
6.0%₹200.00₹174.00₹131.683
Aug ’24₹149.10
₹184.67
+23.9%
6.0%₹200.00₹174.00₹136.113
Jul ’24₹146.20
₹200.33
+37.0%
4.3%₹211.00₹190.00₹143.743
Jun ’24₹149.20
₹200.33
+34.3%
4.3%₹211.00₹190.00₹126.553
May ’24₹160.20
₹211.33
+31.9%
4.0%₹220.00₹200.00₹137.503
Apr ’24₹147.55
₹211.33
+43.2%
4.0%₹220.00₹200.00₹123.203
Mar ’24₹159.85
₹211.33
+32.2%
4.0%₹220.00₹200.00₹140.353
Feb ’24₹175.60
₹211.33
+20.3%
4.0%₹220.00₹200.00₹142.353
Jan ’24₹175.75
₹217.67
+23.9%
3.3%₹225.00₹208.00₹148.453
Dec ’23₹176.80
₹217.67
+23.1%
3.3%₹225.00₹208.00₹148.103
Nov ’23₹164.10
₹208.50
+27.1%
7.9%₹225.00₹192.00₹136.502

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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