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Sterlite Technologies

NSEI:STRTECH
Snowflake Description

Solid track record with high growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STRTECH
NSEI
₹90B
Market Cap
  1. Home
  2. IN
  3. Tech
Company description

Sterlite Technologies Limited manufactures and sells telecom products and solutions in India and internationally. The last earnings update was 56 days ago. More info.


Add to Portfolio Compare Print
  • Sterlite Technologies has significant price volatility in the past 3 months.
STRTECH Share Price and Events
7 Day Returns
-13.3%
NSEI:STRTECH
-8.4%
IN Communications
0.4%
IN Market
1 Year Returns
-30%
NSEI:STRTECH
-23.3%
IN Communications
2%
IN Market
STRTECH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sterlite Technologies (STRTECH) -13.3% -3.6% -21.7% -30% 153.8% 936.8%
IN Communications -8.4% 6.9% -14.7% -23.3% 155.8% 510.5%
IN Market 0.4% 9.1% 1.8% 2% 43.6% 80.4%
1 Year Return vs Industry and Market
  • STRTECH underperformed the Communications industry which returned -23.3% over the past year.
  • STRTECH underperformed the Market in India which returned 2% over the past year.
Price Volatility
STRTECH
Industry
5yr Volatility vs Market

STRTECH Value

 Is Sterlite Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sterlite Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sterlite Technologies.

NSEI:STRTECH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:STRTECH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 35%) (21.34%))
1.158
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.158 * 8.6%)
17.51%

Discounted Cash Flow Calculation for NSEI:STRTECH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sterlite Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:STRTECH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.51%)
2019 -4,798.13 Analyst x4 -4,083.22
2020 3,881.18 Analyst x5 2,810.77
2021 7,679.40 Analyst x4 4,732.82
2022 10,979.39 Est @ 42.97% 5,758.41
2023 14,530.72 Est @ 32.35% 6,485.48
2024 18,149.86 Est @ 24.91% 6,893.81
2025 21,725.34 Est @ 19.7% 7,022.37
2026 25,213.30 Est @ 16.05% 6,935.50
2027 28,617.95 Est @ 13.5% 6,699.11
2028 31,971.22 Est @ 11.72% 6,368.97
Present value of next 10 years cash flows ₹49,624.02
NSEI:STRTECH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹31,971.22 × (1 + 7.55%) ÷ (17.51% – 7.55%)
₹345,285.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹345,285.90 ÷ (1 + 17.51%)10
₹68,784.21
NSEI:STRTECH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹49,624.02 + ₹68,784.21
₹118,408.22
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹118,408.22 / 402.54
₹294.15
NSEI:STRTECH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:STRTECH represents 0.99911x of BSE:532374
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99911x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 294.15 x 0.99911
₹293.89
Value per share (INR) From above. ₹293.89
Current discount Discount to share price of ₹223.95
= -1 x (₹223.95 - ₹293.89) / ₹293.89
23.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sterlite Technologies is available for.
Intrinsic value
24%
Share price is ₹223.95 vs Future cash flow value of ₹293.89
Current Discount Checks
For Sterlite Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sterlite Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sterlite Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sterlite Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sterlite Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:STRTECH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹12.98
BSE:532374 Share Price ** BSE (2019-03-20) in INR ₹224.15
India Communications Industry PE Ratio Median Figure of 13 Publicly-Listed Communications Companies 14.8x
India Market PE Ratio Median Figure of 2,730 Publicly-Listed Companies 16.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sterlite Technologies.

NSEI:STRTECH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532374 Share Price ÷ EPS (both in INR)

= 224.15 ÷ 12.98

17.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterlite Technologies is overvalued based on earnings compared to the IN Communications industry average.
  • Sterlite Technologies is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Sterlite Technologies's expected growth come at a high price?
Raw Data
NSEI:STRTECH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
19.4%per year
India Communications Industry PEG Ratio Median Figure of 5 Publicly-Listed Communications Companies 0.8x
India Market PEG Ratio Median Figure of 596 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

NSEI:STRTECH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.27x ÷ 19.4%

0.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterlite Technologies is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sterlite Technologies's assets?
Raw Data
NSEI:STRTECH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹32.40
BSE:532374 Share Price * BSE (2019-03-20) in INR ₹224.15
India Communications Industry PB Ratio Median Figure of 18 Publicly-Listed Communications Companies 1.46x
India Market PB Ratio Median Figure of 3,617 Publicly-Listed Companies 1.12x
NSEI:STRTECH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532374 Share Price ÷ Book Value per Share (both in INR)

= 224.15 ÷ 32.40

6.92x

* Primary Listing of Sterlite Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sterlite Technologies is overvalued based on assets compared to the IN Communications industry average.
X
Value checks
We assess Sterlite Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Sterlite Technologies has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STRTECH Future Performance

 How is Sterlite Technologies expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sterlite Technologies expected to grow at an attractive rate?
  • Sterlite Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sterlite Technologies's earnings growth is expected to exceed the India market average.
  • Sterlite Technologies's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:STRTECH Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:STRTECH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 19.4%
NSEI:STRTECH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 21.9%
India Communications Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
India Communications Industry Revenue Growth Rate Market Cap Weighted Average 21.2%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:STRTECH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:STRTECH Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 69,218 11,371 7,857 5
2020-03-31 59,291 8,355 6,553 8
2019-03-31 46,090 4,059 5,395 8
NSEI:STRTECH Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 41,610 5,195
2018-09-30 36,576 4,619
2018-06-30 33,551 3,998
2018-03-31 31,938 7,316 3,387
2017-12-31 30,443 2,856
2017-09-30 28,810 2,446
2017-06-30 26,113 2,242
2017-03-31 24,604 4,885 2,014
2016-12-31 23,862 1,898
2016-09-30 22,495 1,709
2016-06-30 22,628 1,601
2016-03-31 21,461 2,147 1,537

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sterlite Technologies's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).
  • Sterlite Technologies's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:STRTECH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Sterlite Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:STRTECH Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 18.93 23.00 15.95 5.00
2020-03-31 16.00 19.00 13.29 8.00
2019-03-31 13.37 14.00 12.50 8.00
NSEI:STRTECH Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 12.98
2018-09-30 11.55
2018-06-30 10.01
2018-03-31 8.49
2017-12-31 7.15
2017-09-30 6.13
2017-06-30 5.63
2017-03-31 5.07
2016-12-31 4.79
2016-09-30 4.33
2016-06-30
2016-03-31 3.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sterlite Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Sterlite Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sterlite Technologies has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STRTECH Past Performance

  How has Sterlite Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sterlite Technologies's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sterlite Technologies has delivered over 20% year on year earnings growth in the past 5 years.
  • Sterlite Technologies's 1-year earnings growth exceeds its 5-year average (81.9% vs 60.7%)
  • Sterlite Technologies's earnings growth has exceeded the IN Communications industry average in the past year (81.9% vs 77.7%).
Earnings and Revenue History
Sterlite Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sterlite Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:STRTECH Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 41,609.60 5,195.00 5,094.00
2018-09-30 36,575.70 4,618.90 4,508.70
2018-06-30 33,551.00 3,998.10 4,069.00
2018-03-31 31,937.70 3,387.10 3,933.10
2017-12-31 30,443.00 2,855.90 3,649.40
2017-09-30 28,810.00 2,446.20 3,474.80
2017-06-30 26,113.10 2,242.30 3,419.20
2017-03-31 24,604.10 2,013.80 3,387.30
2016-12-31 23,862.40 1,897.90 3,099.90
2016-09-30 22,494.60 1,708.90 3,024.80
2016-06-30 22,627.70 1,600.60 2,637.30
2016-03-31 21,460.60 1,537.10 2,296.30
2015-12-31 44,167.40 -108.70 4,067.40 78.50
2015-09-30 40,255.20 -161.20 3,759.80 78.50
2015-06-30 35,023.40 -27.60 3,612.10 78.50
2015-03-31 30,970.60 -26.40 1,918.80
2014-03-31 25,638.50 -355.10 2,923.10 84.20
2013-03-31 30,923.40 251.90 2,965.00 76.60
2012-03-31 26,217.50 396.40 2,376.40 71.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Sterlite Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Sterlite Technologies used its assets more efficiently than the IN Communications industry average last year based on Return on Assets.
  • Sterlite Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sterlite Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sterlite Technologies has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STRTECH Health

 How is Sterlite Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sterlite Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sterlite Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sterlite Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sterlite Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sterlite Technologies Company Filings, last reported 2 months ago.

NSEI:STRTECH Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 13,983.10 19,258.40 3,310.10
2018-09-30 13,983.10 19,258.40 3,310.10
2018-06-30 12,572.70 11,895.80 3,067.60
2018-03-31 12,572.70 11,895.80 3,067.60
2017-12-31 10,385.80 10,951.00 5,245.10
2017-09-30 10,385.80 10,951.00 5,245.10
2017-06-30 9,252.70 11,028.00 1,741.60
2017-03-31 9,252.70 11,028.00 1,744.50
2016-12-31 8,265.00 10,645.50 1,972.00
2016-09-30 8,265.00 10,645.50 1,972.00
2016-06-30 7,300.60 10,890.10 808.40
2016-03-31 7,858.50 10,851.60 777.20
2015-12-31
2015-09-30
2015-06-30 15,190.10 53,162.90 4,347.40
2015-03-31 15,190.10 53,162.90 4,347.40
2014-03-31 11,308.80 43,382.40 3,236.00
2013-03-31 11,720.30 28,207.50 6,155.90
2012-03-31 11,539.90 10,365.10 2,292.40
  • Sterlite Technologies's level of debt (137.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (347.8% vs 137.7% today).
  • Debt is well covered by operating cash flow (38%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.7x coverage).
X
Financial health checks
We assess Sterlite Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sterlite Technologies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STRTECH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.89%
Current annual income from Sterlite Technologies dividends. Estimated to be 1.66% next year.
If you bought ₹2,000 of Sterlite Technologies shares you are expected to receive ₹18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sterlite Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Sterlite Technologies's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:STRTECH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
India Communications Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 0.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:STRTECH Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 4.69 5.00
2020-03-31 3.64 6.00
2019-03-31 2.84 5.00
NSEI:STRTECH Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-06-26 2.000 0.669
2017-07-05 1.500 0.547
2017-04-26 1.500 0.973
2017-01-18 1.000 0.777
2016-10-27 1.000 1.025
2016-07-15 1.000 1.123
2016-05-26 1.000 1.143
2015-05-18 0.600 0.710
2014-07-28 0.300 0.470
2014-04-30 0.300 0.634
2013-07-18 0.300 1.408
2013-04-26 0.300 1.316
2012-09-12 0.300 1.010
2011-09-20 0.500 1.452
2010-07-15 0.500 0.799
2009-04-24 0.228 0.425
2009-03-23 0.182 1.185

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Sterlite Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).
X
Income/ dividend checks
We assess Sterlite Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sterlite Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sterlite Technologies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STRTECH Management

 What is the CEO of Sterlite Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Anand Agarwal
COMPENSATION ₹100,396,000
AGE 51
TENURE AS CEO 16.2 years
CEO Bio

Dr. Anand Agarwal serves as the Chief Executive Officer of Sterlite Technologies Limited. Dr. Agarwal served as the Chief Operating Officer of Sterlite Technologies Limited was responsible for it's Optical Fiber Business Division. He joined Sterlite Technologies Limited. in 1995 and has held various positions including manufacturing, quality assurance and business development. He worked with Siemens. He has been a Whole Time Director of Sterlite Technologies Limited (formerly, Sterlite Optical Technologies Ltd.) since July 30, 2003. He is a Non Executive Director of Sterlite Power Transmission Limited. He served as a Director of Sterlite Energy Ltd. from December 13, 2004 to August 5, 2007. Dr. Agarwal holds a Bachelor of Technology degree in Metallurgical Engineering from the Indian Institute of Technology (IIT Kanpur); and Master's degree and PhD in Materials Engineering from the Rensselaer Polytechnic Institute, USA.

CEO Compensation
  • Anand's compensation has been consistent with company performance over the past year.
  • Anand's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Sterlite Technologies management team in years:

3.6
Average Tenure
49
Average Age
  • The tenure for the Sterlite Technologies management team is about average.
Management Team

Anand Agarwal

TITLE
CEO & Whole-time Director
COMPENSATION
₹100M
AGE
51
TENURE
16.2 yrs

Pravin Agarwal

TITLE
Vice Chairman
COMPENSATION
₹137M
AGE
64

Anupam Jindal

TITLE
Chief Financial Officer
AGE
42
TENURE
13.2 yrs

Amit Deshpande

TITLE
Compliance Officer & Company Secretary
TENURE
5 yrs

Badri Gomatam

TITLE
Chief Technology Officer
COMPENSATION
₹14M
AGE
53

Vishal Aggarwal

TITLE
Head of Investor Relations

Juhi Hajela

TITLE
Head of Corporate Communications

Manish Sinha

TITLE
Chief Marketing Officer
AGE
42
TENURE
1.6 yrs

Amitabh Hajela

TITLE
Chief People Officer
AGE
49
TENURE
1.9 yrs

K. Rao

TITLE
Chief Operating Officer of Telecom Products & Services
COMPENSATION
₹14M
AGE
47
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Sterlite Technologies board of directors in years:

8.9
Average Tenure
60.5
Average Age
  • The tenure for the Sterlite Technologies board of directors is about average.
Board of Directors

Anil Agarwal

TITLE
Non-Executive Chairman
AGE
66
TENURE
12.4 yrs

Anand Agarwal

TITLE
CEO & Whole-time Director
COMPENSATION
₹100M
AGE
51
TENURE
15.7 yrs

Pravin Agarwal

TITLE
Vice Chairman
COMPENSATION
₹137M
AGE
64

Arun Todarwal

TITLE
Non-Executive & Independent Director
COMPENSATION
₹2M
AGE
61
TENURE
16.2 yrs

A. Narayanaswamy

TITLE
Non-Executive & Independent Director
COMPENSATION
₹2M
AGE
67
TENURE
11.9 yrs

Pratik Agarwal

TITLE
Non-Executive Director
COMPENSATION
₹1M
AGE
35
TENURE
5.9 yrs

B. Shantharaju

TITLE
Member of Advisory Board
TENURE
2.4 yrs

Sandip Das

TITLE
Member of Advisory Board & Non-Executive Independent Director
COMPENSATION
₹145K
AGE
60
TENURE
2.4 yrs

Kumud Srinivasan

TITLE
Non-Executive & Independent Director
AGE
58
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Sterlite Technologies insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
13. Mar 19 Sell Kanchan Ghatak Individual 22. Feb 19 07. Mar 19 -4,000 ₹265.00 ₹-1,013,383
12. Mar 19 Sell Puneet Garg Individual 12. Mar 19 12. Mar 19 -4,000 ₹273.36 ₹-1,093,456
12. Mar 19 Sell Pramod Srivastava Individual 06. Mar 19 07. Mar 19 -3,000 ₹270.00 ₹-800,812
06. Mar 19 Sell Vikrant Lele Individual 08. Feb 19 08. Feb 19 -130 ₹240.00 ₹-31,200
06. Mar 19 Buy Vikrant Lele Individual 07. Feb 19 07. Feb 19 130 ₹225.40 ₹29,302
31. Jan 19 Sell Pramod Watekar Individual 28. Jan 19 28. Jan 19 -14,420 ₹261.96 ₹-3,777,485
31. Jan 19 Buy Ankit Agarwal Individual 29. Jan 19 29. Jan 19 11,620 ₹254.90 ₹2,961,907
25. Dec 18 Sell Pramod Srivastava Individual 20. Dec 18 24. Dec 18 -2,000 ₹298.93 ₹-583,466
24. Dec 18 Buy Nikhil Puri Individual 21. Nov 18 21. Dec 18 11 ₹337.88 ₹3,455
20. Dec 18 Sell Pramod Srivastava Individual 15. Nov 18 18. Dec 18 -4,628 ₹362.32 ₹-1,466,732
07. Dec 18 Sell Puneet Garg Individual 30. Nov 18 30. Nov 18 -2,000 ₹350.00 ₹-700,000
04. Dec 18 Sell Sankalp Selot Individual 30. Oct 18 14. Nov 18 -2,060 ₹364.03 ₹-749,390
30. Nov 18 Sell Amjad Khan Individual 28. Nov 18 28. Nov 18 -1,000 ₹347.30 ₹-347,295
30. Nov 18 Sell Amjad Khan Individual 27. Nov 18 27. Nov 18 -2,000 ₹341.28 ₹-681,917
26. Nov 18 Sell Amit Ratnaparkhi Individual 21. Nov 18 21. Nov 18 -1,000 ₹350.00 ₹-350,000
22. Nov 18 Buy Nikhil Puri Individual 22. Oct 18 22. Oct 18 5 ₹325.00 ₹1,625
22. Nov 18 Sell Himanshu Kumar Individual 29. Oct 18 07. Nov 18 -1,500 ₹379.65 ₹-559,718
22. Nov 18 Sell Puneet Garg Individual 29. Oct 18 29. Oct 18 -2,800 ₹356.96 ₹-999,484
22. Nov 18 Sell Sudipta Bhaumik Individual 01. Nov 18 01. Nov 18 -500 ₹393.00 ₹-196,500
22. Nov 18 Sell Abhinav Srivastava Individual 22. Oct 18 01. Nov 18 -2,938 ₹398.00 ₹-1,058,599
22. Nov 18 Buy Abhinav Srivastava Individual 22. Oct 18 30. Oct 18 2,730 ₹383.60 ₹994,574
22. Nov 18 Sell Vishal Karode Individual 09. Nov 18 09. Nov 18 -700 ₹386.01 ₹-270,206
22. Nov 18 Buy Rakesh Shankar Individual 08. Oct 18 08. Oct 18 350 ₹285.00 ₹99,750
22. Nov 18 Sell Alok Mahapatra Individual 31. Oct 18 31. Oct 18 -2,000 ₹380.47 ₹-760,934
22. Nov 18 Sell Amit Ratnaparkhi Individual 20. Nov 18 20. Nov 18 -1,000 ₹350.00 ₹-350,000
12. Nov 18 Sell Amjad Khan Individual 29. Oct 18 09. Nov 18 -4,000 ₹389.29 ₹-1,524,798
09. Nov 18 Sell Abhijeet Koleshwar Individual 06. Nov 18 06. Nov 18 -5,500 ₹378.50 ₹-2,081,750
09. Nov 18 Sell Diptangshu Sen Individual 29. Oct 18 29. Oct 18 -6,250 ₹368.04 ₹-2,300,250
09. Nov 18 Sell Amit Ratnaparkhi Individual 06. Nov 18 06. Nov 18 -2,000 ₹380.00 ₹-753,030
06. Nov 18 Sell Amitesh Dubey Individual 29. Oct 18 01. Nov 18 -3,700 ₹391.35 ₹-1,448,005
06. Nov 18 Sell Gangadhar Kardile Individual 30. Oct 18 30. Oct 18 -9,000 ₹380.00 ₹-3,420,000
02. Nov 18 Sell Amit Ratnaparkhi Individual 10. Oct 18 02. Nov 18 -4,245 ₹392.28 ₹-1,482,406
02. Nov 18 Sell Anand Pandey Individual 30. Oct 18 30. Oct 18 -7,470 ₹374.62 ₹-2,798,408
01. Nov 18 Sell Milind Patil Individual 30. Oct 18 30. Oct 18 -10,000 ₹380.06 ₹-3,800,300
16. Oct 18 Sell Sairam Krovi Individual 01. Oct 18 07. Oct 18 -5,500 ₹300.91 ₹-1,655,000
21. Sep 18 Sell Pramod Srivastava Individual 18. Sep 18 19. Sep 18 -11,000 ₹348.54 ₹-3,792,042
19. Sep 18 Sell Pramod Srivastava Individual 27. Jul 18 17. Sep 18 -28,000 ₹396.82 ₹-9,716,098
19. Sep 18 Sell Pramod Srivastava Individual 27. Jul 18 17. Sep 18 -29,500 ₹396.82 ₹-10,232,656
22. Aug 18 Sell Arvind Mishra Individual 21. Aug 18 21. Aug 18 -6,000 ₹354.20 ₹-2,125,200
17. Aug 18 Sell Kanchan Ghatak Individual 13. Aug 18 13. Aug 18 -3,000 ₹360.00 ₹-1,080,000
17. Aug 18 Sell Anand Agarwal Individual 17. Aug 18 17. Aug 18 -50,000 ₹362.00 ₹-18,099,999
01. Aug 18 Sell Balram Sharma Individual 24. Jul 18 31. Jul 18 -3,500 ₹347.77 ₹-1,214,050
01. Aug 18 Sell Arvind Mishra Individual 24. Jul 18 31. Jul 18 -10,500 ₹348.10 ₹-3,620,764
04. Jun 18 Sell Rajeev Ojha Individual 31. May 18 31. May 18 -4,000 ₹332.40 ₹-1,323,700
04. Jun 18 Buy Rajeev Ojha Individual 31. May 18 31. May 18 2,000 ₹329.17 ₹658,340
27. Jul 18 Sell Phill Coppin Individual 26. Jul 18 26. Jul 18 -20,000 ₹331.50 ₹-6,629,999
02. Jul 18 Sell Pramod Srivastava Individual 30. Apr 18 29. Jun 18 -10,500 ₹364.20 ₹-3,082,839
21. May 18 Sell Kanchan Ghatak Individual 08. May 18 16. May 18 -5,000 ₹343.70 ₹-1,588,014
08. May 18 Sell Girish Gupta Individual 30. Apr 18 30. Apr 18 -10,000 ₹346.66 ₹-3,466,649
03. May 18 Sell K. Rao Individual 30. Apr 18 02. May 18 -10,000 ₹355.00 ₹-3,531,578
06. Apr 18 Sell Saurabh Kumar Individual 02. Apr 18 05. Apr 18 -37,000 ₹327.37 ₹-12,014,772
29. Mar 18 Sell Amitabh Hajela Individual 26. Mar 18 26. Mar 18 -3,500 ₹310.74 ₹-1,087,585
26. Mar 18 Sell Pramod Srivastava Individual 22. Jan 18 22. Mar 18 -5,600 ₹424.23 ₹-1,981,568
30. Mar 18 Sell Pramod Srivastava Individual 26. Mar 18 27. Mar 18 -1,500 ₹325.28 ₹-481,735
X
Management checks
We assess Sterlite Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sterlite Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STRTECH News

Simply Wall St News

Sterlite Technologies Limited (NSE:STRTECH) Insiders Have Been Selling

So before you buy or sell Sterlite Technologies Limited (NSE:STRTECH), you may well want to know whether insiders have been buying or selling. … Sterlite Technologies Insider Transactions Over The Last Year. … However, we do note that the average sale price was significantly higher than the current share price (which is ₹224).

Simply Wall St -

Should We Worry About Sterlite Technologies Limited's (NSE:STRTECH) P/E Ratio?

Based on the last twelve months, Sterlite Technologies's P/E ratio is 20.68. … How Do I Calculate Sterlite Technologies's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Sterlite Technologies Limited’s (NSE:STRTECH) 30% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Should You Think About Buying Sterlite Technologies Limited (NSE:STRTECH) Now?

received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹384.6 at one point, and dropping to the lows of ₹214.25. … A question to answer is whether Sterlite Technologies's current trading price of ₹219.2 reflective of the actual value of the? … Let’s take a look at Sterlite Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Should You Worry About Sterlite Technologies Limited's (NSE:STRTECH) CEO Salary Level?

Anand Agarwal has been the CEO of Sterlite Technologies Limited (NSE:STRTECH) since 2003. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Anand Agarwal's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Why Sterlite Technologies Limited (NSE:STRTECH) Looks Like A Quality Company

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.35. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is It Too Late To Buy Sterlite Technologies Limited (NSE:STRTECH) At Its January Price?

Sterlite Technologies Limited (NSE:STRTECH) is considered a high-growth stock, but its last closing price of ₹290.3 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for Sterlite Technologies? … If you are bullish about Sterlite Technologies's growth potential then you are certainly not alone

Simply Wall St -

Looking At Sterlite Technologies Limited (NSE:STRTECH) From All Angles

Sterlite Technologies Limited (NSE:STRTECH) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of STRTECH, it

Simply Wall St -

Does Sterlite Technologies Limited (NSE:STRTECH) Have A High Beta?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

Read This Before Buying Sterlite Technologies Limited (NSE:STRTECH) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Sterlite Technologies Limited (NSE:STRTECH). … Sterlite Technologies Insider Transactions Over The Last Year. … All up, insiders sold more shares in Sterlite Technologies than they bought, over the last year

Simply Wall St -

STRTECH Company Info

Description

Sterlite Technologies Limited manufactures and sells telecom products and solutions in India and internationally. It focuses on providing telecom products and solutions that include integrated optical fiber and other telecom products, such as fiber optical cables, copper telecom cables, structured data cables and access equipment, fiber connectivity and system integration solutions for telecom networks, operations support systems /business support service solutions, and billing and bandwidth management solutions to organizations. The company also engages in the design, engineering, implementation, and maintenance of optical fiber cable networks. It also exports its products and services. The company was formerly known as Sterlite Optical Technologies Limited and changed its name to Sterlite Technologies Limited in 2007. Sterlite Technologies Limited was founded in 1988 and is based in Pune, India. Sterlite Technologies Limited is a subsidiary of Twin Star Overseas Limited.

Details
Name: Sterlite Technologies Limited
STRTECH
Exchange: NSEI
Founded: 1988
₹90,229,727,210
402,541,723
Website: http://www.sterlitetech.com
Address: Sterlite Technologies Limited
Godrej Millennium,
Ground Floor,
Pune,
Maharashtra, 411001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532374 Equity Shares Mumbai Stock Exchange IN INR 03. Nov 2000
NSEI STRTECH Equity Shares National Stock Exchange of India IN INR 03. Nov 2000
Number of employees
Current staff
Staff numbers
0
Sterlite Technologies employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 12:46
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/01/24
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.