INSUBCONTINENT EXCLUSIVE:
ETMarkets.com|Updated: Jul 19, 2018, 05.42 PM ISTICICI Direct has a buy call on Sterlite Technologies Ltd
with a target price of Rs 450.0
The current market price of Sterlite Technologies Ltd
is Rs 301.15 Time period given by the brokerage is a year when Sterlite Technologies Ltd
price can reach defined target
Sterlite Technologies Ltd., incorporated in the year 2000, is a midcap company with a market cap of Rs 12600.51 crore.
Investment rationale
by ICICI DirectWe reiterate that demand funnel for Sterlite, both on Product (global 4G network expansion and 5G foray) and services (SI/NI
opportunities from NFS/ Bharat Net etc), looks strong
We also highlight that new OF capacity expansion would bring in additional revenue opportunity of ~ Rs 1000 crore at the full capacity (from
FY20 onwards) which would in turn be margin accretive
The ramp up in OFC capacity and services revenues from Navy order, current acquisition would further boost the growth trajectory
Given the robust growth potential (topline and earnings CAGR of 35.4% and 34.1%, respectively, in FY18-20E), we maintain our BUY
recommendation on the stock
We value the company at 30x FY20E P/E to arrive at target price of Rs 450.
Read this article inHindiHold Cyient, target Rs 760: ICICI
DirectHold NTPC, target Rs 175: ICICI DirectBuy Ashoka Buildcon, target Rs 195: ICICI DirectHold Astral Poly Technik, target Rs 935: ICICI
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