NSEI:STRTECH

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Sterlite Technologies

Executive Summary

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


Snowflake Analysis

High growth potential established dividend payer.


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: STRTECH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

STRTECH

-0.9%

IN Communications

-0.5%

IN Market


1 Year Return

1.5%

STRTECH

19.6%

IN Communications

2.0%

IN Market

Return vs Industry: STRTECH underperformed the Indian Communications industry which returned 19.6% over the past year.

Return vs Market: STRTECH matched the Indian Market which returned 2% over the past year.


Shareholder returns

STRTECHIndustryMarket
7 Day-1.2%-0.9%-0.5%
30 Day0.2%-5.7%0.3%
90 Day9.2%5.6%7.1%
1 Year3.6%1.5%20.7%19.6%3.7%2.0%
3 Year-40.8%-43.6%-32.1%-33.5%2.0%-3.0%
5 Year69.1%57.7%122.3%113.1%40.9%30.4%

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?

1.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STRTECH (₹149.55) is trading below our estimate of fair value (₹152.51)

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


Price To Earnings Ratio

PE vs Industry: STRTECH is good value based on its PE Ratio (19.6x) compared to the IN Communications industry average (28x).

PE vs Market: STRTECH is poor value based on its PE Ratio (19.6x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: STRTECH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: STRTECH is overvalued based on its PB Ratio (3.1x) compared to the IN Communications industry average (1x).


Next Steps

Future Growth

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

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRTECH's forecast earnings growth (37.5% per year) is above the savings rate (7.2%).

Earnings vs Market: STRTECH's earnings (37.5% per year) are forecast to grow faster than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STRTECH's revenue (17.6% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: STRTECH's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STRTECH's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Sterlite Technologies performed over the past 5 years?

37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRTECH has high quality earnings.

Growing Profit Margin: STRTECH's current net profit margins (6.6%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: STRTECH has become profitable over the past 5 years, growing earnings by 37.1% per year.

Accelerating Growth: STRTECH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STRTECH had negative earnings growth (-48.3%) over the past year, making it difficult to compare to the Communications industry average (-37.8%).


Return on Equity

High ROE: STRTECH's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is Sterlite Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: STRTECH's short term assets (₹37.7B) do not cover its short term liabilities (₹39.8B).

Long Term Liabilities: STRTECH's short term assets (₹37.7B) exceed its long term liabilities (₹12.1B).


Debt to Equity History and Analysis

Debt Level: STRTECH's debt to equity ratio (108.8%) is considered high.

Reducing Debt: STRTECH's debt to equity ratio has reduced from 349.2% to 108.8% over the past 5 years.

Debt Coverage: STRTECH's debt is well covered by operating cash flow (31.6%).

Interest Coverage: STRTECH's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STRTECH's dividend (2.34%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: STRTECH's dividend (2.34%) is in the top 25% of dividend payers in the Indian market (2.28%)


Stability and Growth of Payments

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 reasonably low payout ratio (46%), 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 (31.9% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Anand Agarwal (53 yo)

17.75yrs

Tenure

₹107,650,000

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's total compensation ($USD1.46M) is above average for companies of similar size in the Indian market ($USD390.03K).

Compensation vs Earnings: Anand's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anand Agarwal
Group CEO & Whole-time Director17.75yrs₹107.65m0.28%
₹ 166.2m
Pravin Agarwal
Vice Chairmanno data₹148.58m0.30%
₹ 177.5m
Amit Deshpande
Corporate General Counsel6.58yrs₹6.40m0.012%
₹ 7.2m
Mihir Modi
Chief Financial Officerno datano datano data
Badri Gomatam
Group Chief Technology Officerno data₹14.35m0.0077%
₹ 4.6m
Pankaj Dhawan
Head of Investor Relationsno datano datano data
Vishal Aggarwal
Group Head of Corporate Development and Head of M&Ano datano data0.028%
₹ 16.6m
Manish Sinha
Chief Marketing Officer3.17yrsno datano data
Anjali Byce
Chief Human Resources Officerno datano datano data
K. Rao
Chief Executive Officer of Network Services & Software Business3.75yrs₹14.42m0.076%
₹ 45.2m
Ankit Agarwal
Chief Executive Officer of Connectivity Solutions Businessno datano data0.20%
₹ 120.4m
Pankaj Priyadarshi
Chief Operating Officer of Optical Fiber Operationsno data₹9.51m0.042%
₹ 24.9m

5.2yrs

Average Tenure

53yo

Average Age

Experienced Management: STRTECH's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anand Agarwal
Group CEO & Whole-time Director17.75yrs₹107.65m0.28%
₹ 166.2m
Pravin Agarwal
Vice Chairmanno data₹148.58m0.30%
₹ 177.5m
Krish Prabhu
Member of Advisory Board0.083yrno datano data
Anil Agarwal
Non-Executive Chairman14yrsno datano data
Sandip Das
Member of Advisory Board & Non-Executive Independent Director4yrs₹3.34m0.0021%
₹ 1.2m
B. Shantharaju
Member of Advisory Board4yrsno datano data
Arun Todarwal
Non-Executive & Independent Director17.75yrs₹3.54m0.00058%
₹ 343.2k
Alampallam Narayanaswamy
Non-Executive & Independent Director13.5yrs₹3.18m0.00025%
₹ 147.9k
Pratik Agarwal
Non-Executive Director7.5yrs₹2.33m0.030%
₹ 17.7m
Kumud Srinivasan
Non-Executive & Independent Director2.42yrs₹3.03mno data

7.5yrs

Average Tenure

63yo

Average Age

Experienced Board: STRTECH's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STRTECH insiders have only sold shares 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: STRTECH
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: ₹59.175b
  • Shares outstanding: 395.69m
  • Website: https://www.sterlitetech.com

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 Analysis2020/10/21 12:36
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.