NSEI:STRTECH

Stock Analysis Report

Sterlite Technologies

Executive Summary

Sterlite Technologies Limited manufactures and sells telecom products and solutions in India and internationally.

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

-2.4%

STRTECH

-1.8%

IN Communications

1.6%

IN Market


1 Year Return

-56.6%

STRTECH

-39.4%

IN Communications

0.8%

IN Market

Return vs Industry: STRTECH underperformed the Indian Communications industry which returned -39.4% over the past year.

Return vs Market: STRTECH underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

STRTECHIndustryMarket
7 Day-2.4%-1.8%1.6%
30 Day-3.4%-3.1%1.5%
90 Day-16.6%-13.8%-3.3%
1 Year-55.7%-56.6%-38.6%-39.4%2.7%0.8%
3 Year43.9%38.5%69.8%65.7%22.0%16.0%
5 Year103.1%92.1%109.8%102.5%42.3%29.3%

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?

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: STRTECH (₹137.9) is trading below our estimate of fair value (₹209.83)

Significantly Undervalued: STRTECH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: STRTECH is poor value based on its PE Ratio (9.4x) compared to the Communications industry average (8.7x).

PE vs Market: STRTECH is good value based on its PE Ratio (9.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: STRTECH is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: STRTECH is overvalued based on its PB Ratio (3.2x) compared to the IN Communications industry average (0.8x).


Next Steps

Future Growth

How is Sterlite Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRTECH's forecast earnings growth (12.8% per year) is above the savings rate (7.6%).

Earnings vs Market: STRTECH's earnings (12.8% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: STRTECH's earnings are forecast to grow, but not significantly.

Revenue vs Market: STRTECH's revenue (15.4% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: STRTECH's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if STRTECH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sterlite Technologies performed over the past 5 years?

57.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STRTECH has become profitable over the past 5 years, growing earnings by 57.4% per year.

Accelerating Growth: STRTECH's earnings growth over the past year (47.9%) is below its 5-year average (57.4% per year).

Earnings vs Industry: STRTECH earnings growth over the past year (47.9%) exceeded the Communications industry 32.6%.


Return on Equity

High ROE: Whilst STRTECH's Return on Equity (33.07%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: STRTECH has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: STRTECH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sterlite Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: STRTECH's short term assets (₹39.8B) do not cover its short term liabilities (₹41.4B)

Long Term Liabilities: STRTECH's short term assets (39.8B) exceeds its long term liabilities (10.6B)


Debt to Equity History and Analysis

Debt Level: STRTECH's debt to equity ratio (114%) is considered high

Reducing Debt: STRTECH's debt to equity ratio has reduced from 373.1% to 114% over the past 5 years.

Debt Coverage: STRTECH's debt is well covered by operating cash flow (30.5%).

Interest Coverage: STRTECH's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: STRTECH has a high level of physical assets or inventory.

Debt Coverage by Assets: STRTECH's debt is covered by short term assets (assets are 1.923400x debt).


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%0.6%markettop25%2.5%industryaverage2.0%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STRTECH's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: STRTECH's dividend (2.53%) is in the top 25% of dividend payers in the Indian market (2.49%)

Stable Dividend: STRTECH's dividend payments have been volatile in the past 10 years.

Growing Dividend: STRTECH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.8%), STRTECH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STRTECH's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Anand Agarwal (52yo)

16.8yrs

Tenure

₹123,953,000

Compensation

Dr. Anand Gopaldas Agarwal serves as Group Chief Executive Officer of Sterlite Technologies Limited. Dr. Agarwal served as the Chief Operating Officer of Sterlite Technologies Limited was responsible for O ...


CEO Compensation Analysis

Compensation vs. Market: Anand's total compensation ($USD1.75M) is about average for companies of similar size in the Indian market ($USD367.95K).

Compensation vs Earnings: Anand's compensation has increased by more than 20% in the past year.


Management Age and Tenure

8.3yrs

Average Tenure

50yo

Average Age

Experienced Management: STRTECH's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: STRTECH's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

Insider Buying: STRTECH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,349,83404 Oct 19
Ajay Razdan
EntityIndividual
Shares15,000
Max Price₹157.24
Sell₹1,597,99604 Oct 19
Ajay Razdan
EntityIndividual
Shares10,000
Max Price₹159.80
Sell₹150,00027 Sep 19
Vimal Malhotra
EntityIndividual
Shares1,000
Max Price₹150.00
Sell₹887,73427 Sep 19
Pankaj Aggarwal
EntityIndividual
Shares6,000
Max Price₹147.96
Sell₹4,885,36727 Sep 19
K. Rao
EntityIndividual
Role
Senior Key Executive
Chief Executive Officer of Network Services Business
Shares35,000
Max Price₹139.58
Sell₹1,750,00002 Jul 19
Saurabh Kumar
EntityIndividual
Shares10,000
Max Price₹175.00
Sell₹637,08102 Jul 19
Pramod Srivastava
EntityIndividual
Shares3,539
Max Price₹182.73
Buy₹9,896,62428 May 19
Pravin Agarwal
EntityIndividual
Role
Vice Chairman
Vice Chairman & Whole-time Director
Shares57,000
Max Price₹173.62
Sell₹185,35014 May 19
Pramod Srivastava
EntityIndividual
Shares1,000
Max Price₹185.35
Sell₹645,93310 May 19
Pramod Srivastava
EntityIndividual
Shares3,500
Max Price₹184.68
Sell₹1,013,38313 Mar 19
Kanchan Ghatak
EntityIndividual
Shares4,000
Max Price₹265.00
Sell₹1,093,45612 Mar 19
Puneet Garg
EntityIndividual
Shares4,000
Max Price₹273.36
Sell₹800,81212 Mar 19
Pramod Srivastava
EntityIndividual
Shares3,000
Max Price₹270.00
Sell₹31,20006 Mar 19
Vikrant Lele
EntityIndividual
Shares130
Max Price₹240.00
Buy₹29,30206 Mar 19
Vikrant Lele
EntityIndividual
Shares130
Max Price₹225.40
Buy₹2,961,90731 Jan 19
Ankit Agarwal
EntityIndividual
Shares11,620
Max Price₹254.90
Sell₹3,777,48531 Jan 19
Pramod Watekar
EntityIndividual
Shares14,420
Max Price₹261.96
Sell₹583,46625 Dec 18
Pramod Srivastava
EntityIndividual
Shares2,000
Max Price₹298.93
Buy₹3,45524 Dec 18
Nikhil Puri
EntityIndividual
Shares11
Max Price₹337.88
Sell₹1,466,73220 Dec 18
Pramod Srivastava
EntityIndividual
Shares4,628
Max Price₹362.32
Sell₹700,00007 Dec 18
Puneet Garg
EntityIndividual
Shares2,000
Max Price₹350.00
Sell₹749,39004 Dec 18
Sankalp Selot
EntityIndividual
Shares2,060
Max Price₹364.03
Sell₹681,91730 Nov 18
Amjad Khan
EntityIndividual
Shares2,000
Max Price₹341.28
Sell₹347,29530 Nov 18
Amjad Khan
EntityIndividual
Shares1,000
Max Price₹347.30
Sell₹350,00026 Nov 18
Amit Ratnaparkhi
EntityIndividual
Shares1,000
Max Price₹350.00
Sell₹196,50022 Nov 18
Sudipta Bhaumik
EntityIndividual
Shares500
Max Price₹393.00
Sell₹350,00022 Nov 18
Amit Ratnaparkhi
EntityIndividual
Shares1,000
Max Price₹350.00
Sell₹270,20622 Nov 18
Vishal Karode
EntityIndividual
Shares700
Max Price₹386.01
Sell₹999,48422 Nov 18
Puneet Garg
EntityIndividual
Shares2,800
Max Price₹356.96
Sell₹559,71822 Nov 18
Himanshu Kumar
EntityIndividual
Shares1,500
Max Price₹379.65
Buy₹994,57422 Nov 18
Abhinav Srivastava
EntityIndividual
Shares2,730
Max Price₹383.60
Sell₹760,93422 Nov 18
Alok Mahapatra
EntityIndividual
Shares2,000
Max Price₹380.47
Sell₹1,058,59922 Nov 18
Abhinav Srivastava
EntityIndividual
Shares2,938
Max Price₹398.00
Buy₹1,62522 Nov 18
Nikhil Puri
EntityIndividual
Shares5
Max Price₹325.00
Sell₹1,524,79812 Nov 18
Amjad Khan
EntityIndividual
Shares4,000
Max Price₹389.29
Sell₹753,03009 Nov 18
Amit Ratnaparkhi
EntityIndividual
Shares2,000
Max Price₹380.00
Sell₹2,081,75009 Nov 18
Abhijeet Koleshwar
EntityIndividual
Shares5,500
Max Price₹378.50
Sell₹2,300,25009 Nov 18
Diptangshu Sen
EntityIndividual
Shares6,250
Max Price₹368.04
Sell₹1,448,00506 Nov 18
Amitesh Dubey
EntityIndividual
Shares3,700
Max Price₹391.35
Sell₹3,420,00006 Nov 18
Gangadhar Kardile
EntityIndividual
Shares9,000
Max Price₹380.00
Sell₹1,482,40602 Nov 18
Amit Ratnaparkhi
EntityIndividual
Shares4,245
Max Price₹392.28
Sell₹2,798,40802 Nov 18
Anand Pandey
EntityIndividual
Shares7,470
Max Price₹374.62
Sell₹3,800,30001 Nov 18
Milind Patil
EntityIndividual
Shares10,000
Max Price₹380.06

Ownership Breakdown


Management Team

  • Pravin Agarwal (65yo)

    Vice Chairman & Whole-time Director

    • Tenure: 0yrs
    • Compensation: ₹143.44m
  • Anand Agarwal (52yo)

    Group CEO & Whole-time Director

    • Tenure: 16.8yrs
    • Compensation: ₹123.95m
  • K. Rao (48yo)

    Chief Executive Officer of Network Services Business

    • Tenure: 2.8yrs
    • Compensation: ₹14.42m
  • Anupam Jindal (43yo)

    Group Chief Financial Officer

    • Tenure: 13.8yrs
  • Badri Gomatam (54yo)

    Group Chief Technology Officer

    • Tenure: 0yrs
    • Compensation: ₹14.35m
  • Amit Deshpande

    Corporate General Counsel

    • Tenure: 0yrs
  • Manish Sinha (43yo)

    Chief Marketing Officer

    • Tenure: 2.2yrs
  • Vishal Aggarwal

    Head of Investor Relations

    • Tenure: 0yrs
  • Juhi Hajela

    Head of Corporate Communications

    • Tenure: 0yrs
  • Anjali Byce

    Chief Human Resources Officer

    • Tenure: 0yrs

Board Members

  • Anil Agarwal (67yo)

    Non-Executive Chairman

    • Tenure: 13yrs
  • Sandip Das (61yo)

    Member of Advisory Board & Non-Executive Independent Director

    • Tenure: 2yrs
    • Compensation: ₹1.48m
  • B. Shantharaju

    Member of Advisory Board

    • Tenure: 3yrs
  • Arun Todarwal (62yo)

    Non-Executive & Independent Director

    • Tenure: 16.8yrs
    • Compensation: ₹2.40m
  • Pravin Agarwal (65yo)

    Vice Chairman & Whole-time Director

    • Tenure: 0yrs
    • Compensation: ₹143.44m
  • Anand Agarwal (52yo)

    Group CEO & Whole-time Director

    • Tenure: 16.8yrs
    • Compensation: ₹123.95m
  • Alampallam Narayanaswamy (68yo)

    Non-Executive & Independent Director

    • Tenure: 12.5yrs
    • Compensation: ₹2.15m
  • Pratik Agarwal (36yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: ₹1.70m
  • Kumud Srinivasan (59yo)

    Non-Executive & Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹325.00k

Company Information

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


Key Information

  • Name: Sterlite Technologies Limited
  • Ticker: STRTECH
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: ₹57.545b
  • Shares outstanding: 403.69m
  • Website: https://www.sterlitetech.com

Number of Employees


Location

  • Sterlite Technologies Limited
  • Godrej Millennium
  • Ground Floor
  • Pune
  • Maharashtra
  • 411001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532374BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2000
STRTECHNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2000

Biography

Sterlite Technologies Limited manufactures and sells telecom products and solutions in India and internationally. It offers fiber optical cables, optical fibers, and copper telecom cables; and fibre optica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:46
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.