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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sterlite Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:30 pm

Market Cap 5,549 Cr.
Current Price 114
High / Low159/110
Stock P/E
Book Value 60.2
Dividend Yield0.00 %
ROCE4.80 %
ROE3.52 %
Face Value 2.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sterlite Technologies Ltd

Competitors of Sterlite Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vindhya Telelinks Ltd 2,302 Cr. 1,9433,233/1,8509.97 3,4900.77 %10.9 %7.64 % 10.0
Tamil Nadu Telecommunications Ltd 42.0 Cr. 9.4717.3/8.20 37.20.00 %%% 10.0
Surana Telecom and Power Ltd 262 Cr. 19.430.5/10.426.3 10.30.00 %3.87 %3.27 % 1.00
Sterlite Technologies Ltd 5,549 Cr. 114159/110 60.20.00 %4.80 %3.52 % 2.00
Paramount Communications Ltd 2,036 Cr. 66.8117/61.121.0 22.20.00 %15.3 %19.4 % 2.00
Industry Average1,820.33 Cr338.3235.64529.880.23%12.96%29.45%5.71

All Competitor Stocks of Sterlite Technologies Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,4751,3091,5081,2871,4971,4871,6831,8831,8721,5221,4941,3221,140
Expenses1,2191,0771,2461,2991,3671,3261,4521,6411,6161,3081,2811,2321,087
Operating Profit256232262-121301612312422562142139053
OPM %17%18%17%-1%9%11%14%13%14%14%14%7%5%
Other Income313311-170-35-17-16830111215
Interest53495764686877788992959488
Depreciation61707586877676787881858485
Profit before tax172145141-179-25-186170977144-76-105
Tax %29%26%26%21%0%-33%34%33%35%27%27%22%22%
Net Profit122107105-142-25-244047635232-59-82
EPS in Rs3.142.922.64-3.50-0.55-0.551.101.281.631.350.85-1.43-2.05

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,0922,5643,0972,1442,4493,1775,0875,1544,8255,4376,9255,478
Expenses2,8652,2872,6341,6851,9292,4313,9684,0934,0184,7726,0304,908
Operating Profit2272774634595197461,1201,061807665895570
OPM %7%11%15%21%21%23%22%21%17%12%13%10%
Other Income11214910203837-1658-22-6468
Interest106180327119123104105221203238311369
Depreciation89133185126159182195290285308309335
Profit before tax43-15022525749785653337797211-66
Tax %43%160%3,355%29%15%27%32%20%30%54%40%-14%
Net Profit24-40-416021836457842426545127-57
EPS in Rs0.64-0.90-0.073.895.068.3413.9810.746.951.513.54-1.28
Dividend Payout %47%-33%-896%3%25%24%25%33%29%33%28%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-266.67%90.00%4100.00%36.25%66.97%58.79%-26.64%-37.50%-83.02%182.22%-144.88%
Change in YoY Net Profit Growth (%)0.00%356.67%4010.00%-4063.75%30.72%-8.18%-85.43%-10.86%-45.52%265.24%-327.10%

Sterlite Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:1%
3 Years:4%
TTM:-25%
Compounded Profit Growth
10 Years:-20%
5 Years:%
3 Years:%
TTM:-186%
Stock Price CAGR
10 Years:7%
5 Years:-2%
3 Years:-26%
1 Year:-27%
Return on Equity
10 Years:14%
5 Years:8%
3 Years:2%
Last Year:-4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital79797979808081817980808098
Reserves1,0811,0311,0086768001,0951,6391,8391,9081,8752,0111,9432,840
Borrowings2,8214,3385,7251,0851,0921,1782,0672,5772,9443,4753,8343,3762,787
Other Liabilities1,3851,4781,5687759381,3593,2262,6983,1243,2812,8862,8793,113
Total Liabilities5,3656,9268,3802,6142,9113,7127,0127,1958,0558,7118,8118,2788,838
Fixed Assets1,1171,7254,0551,1371,3131,2342,4683,0603,1743,3513,2463,2093,168
CWIP2,1813,5492,193172663574191332271431296231
Investments442225916491751353333039213612388
Other Assets2,0221,4302,0741,2891,4831,9463,9903,6694,3505,1255,3004,8845,551
Total Assets5,3656,9268,3802,6142,9113,7127,0127,1958,0558,7118,8118,2788,838

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +283264393215488729631696638584228791
Cash from Investing Activity +-1,495-1,727-1,172-128-232-586-1,172-624-615-481-56-211
Cash from Financing Activity +1,5451,079850-81-187-152570-6823115-132-691
Net Cash Flow333-38471669-92944621840-111

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow225.00273.00458.00458.00518.00745.00-1.00-1.00805.00662.00892.00567.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6881981211021009711111011596106
Inventory Days537483781229787679512192120
Days Payable106138180141164188281212296319238318
Cash Conversion Cycle1518157608-97-34-91-83-50-92
Working Capital Days-30-50-13537248344289929790
ROCE %5%3%5%8%20%27%30%19%12%8%11%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.24%54.20%54.16%54.15%54.11%54.10%54.06%54.05%53.99%53.99%53.98%44.18%
FIIs6.31%7.01%6.14%5.99%7.91%7.87%7.99%7.16%5.45%4.75%5.02%7.77%
DIIs10.09%7.08%7.97%7.21%3.76%2.87%2.09%1.99%1.91%1.96%2.00%11.73%
Public29.36%31.71%31.72%32.65%34.22%35.16%35.86%36.81%38.63%39.31%38.99%36.31%
No. of Shareholders1,83,2611,80,0851,97,7232,06,3922,10,9552,11,0852,05,9292,07,5132,25,5712,30,4632,32,6692,38,975

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Nifty Smallcap 250 Index Fund122,0670.181.741,9962024-11-206015.58%
Motilal Oswal Nifty Smallcap 250 Index Fund76,2810.181.091,9962024-11-203721.69%
SBI Nifty Smallcap 250 Index Fund59,8750.180.861,9962024-11-202899.75%
ICICI Prudential Nifty Smallcap 250 Index Fund28,5010.180.411,9962024-11-201327.91%
HDFC NIFTY Smallcap 250 ETF16,5360.180.241,9962024-11-20728.46%
HDFC Nifty Smallcap 250 Index Fund13,3360.180.191,9962024-11-20568.14%
Motilal Oswal Nifty 500 Index Fund7,6990.020.111,9962024-11-20285.72%
Edelweiss Nifty Smallcap 250 Index Fund3,1050.180.041,9962024-11-2055.56%
ICICI Prudential S&P BSE 500 ETF1,9960.020.031,9962024-11-200%
HDFC S&P BSE 500 Index Fund3750.020.011,9962024-11-20-81.21%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-1.273.531.566.9810.89
Diluted EPS (Rs.)-1.273.501.556.9010.77
Cash EPS (Rs.)6.8510.809.2613.5117.69
Book Value[Excl.RevalReserv]/Share (Rs.)50.5852.3851.3552.5850.08
Book Value[Incl.RevalReserv]/Share (Rs.)50.5852.3851.3552.5850.08
Revenue From Operations / Share (Rs.)136.95173.13144.67121.65127.60
PBDIT / Share (Rs.)15.6823.2714.9421.5227.32
PBIT / Share (Rs.)7.3015.556.7514.3320.13
PBT / Share (Rs.)-1.937.781.099.2113.41
Net Profit / Share (Rs.)-1.523.081.076.3210.51
NP After MI And SOA / Share (Rs.)-1.273.521.566.9410.74
PBDIT Margin (%)11.4413.4410.3217.6921.41
PBIT Margin (%)5.338.984.6611.7715.77
PBT Margin (%)-1.404.490.757.5710.50
Net Profit Margin (%)-1.111.770.745.198.23
NP After MI And SOA Margin (%)-0.932.031.075.708.41
Return on Networth / Equity (%)-2.526.743.1613.8622.60
Return on Capital Employeed (%)9.2618.646.9615.7725.17
Return On Assets (%)-0.611.590.703.416.01
Long Term Debt / Equity (X)0.480.470.780.630.50
Total Debt / Equity (X)1.591.751.691.251.15
Asset Turnover Ratio (%)0.630.650.640.590.72
Current Ratio (X)0.890.941.020.990.94
Quick Ratio (X)0.730.790.830.850.83
Inventory Turnover Ratio (X)3.013.764.835.195.20
Dividend Payout Ratio (NP) (%)-78.4314.18128.1050.1939.20
Dividend Payout Ratio (CP) (%)14.084.4420.4824.6623.48
Earning Retention Ratio (%)178.4385.82-28.1049.8160.80
Cash Earning Retention Ratio (%)85.9295.5679.5275.3476.52
Interest Coverage Ratio (X)1.702.992.464.214.99
Interest Coverage Ratio (Post Tax) (X)0.811.731.052.253.19
Enterprise Value (Cr.)7254.009050.0011800.9410038.394634.38
EV / Net Operating Revenue (X)1.321.312.052.080.89
EV / EBITDA (X)11.579.7219.8611.764.20
MarketCap / Net Operating Revenue (X)0.800.841.551.600.49
Retention Ratios (%)178.4385.81-28.1049.8060.79
Price / BV (X)2.192.814.573.871.34
Price / Net Operating Revenue (X)0.800.841.551.600.49
EarningsYield-0.010.020.010.030.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sterlite Technologies Ltd as of November 23, 2024 is: 32.42

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Sterlite Technologies Ltd is Overvalued by 71.56% compared to the current share price 114.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Sterlite Technologies Ltd as of November 23, 2024 is: 19.40

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Sterlite Technologies Ltd is Overvalued by 82.98% compared to the current share price 114.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -40.15%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -24.00, which is a positive sign.
  2. The company has shown consistent growth in sales (3.75 cr) and profit (251.25 cr) over the years.
  1. The stock has a low average ROCE of 12.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 43.67, which may not be favorable.
  3. The company has higher borrowings (2,869.15) compared to reserves (1,518.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sterlite Technologies Ltd:
    1. Net Profit Margin: -1.11%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.26% (Industry Average ROCE: 12.96%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -2.52% (Industry Average ROE: 29.45%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0.81
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.73
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 35.64)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.59
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Sterlite Technologies Ltd. is a Public Limited Listed company incorporated on 24/03/2000 and has its registered office in the State of Dadra & Nagar Haveli, India. Company’s Corporate Identification Number(CIN) is L31300PN2000PLC202408 and registration number is 269261. Currently Company is involved in the business activities of Manufacture of fibre optic cables for data transmission or live transmission of images. Company’s Total Operating Revenue is Rs. 5021.06 Cr. and Equity Capital is Rs. 79.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Telecom4th Floor, Godrej Millennium, Koregaon Road 9, STS 12/1, Pune Maharashtra 411001communications@sterlite.com
http://www.sterlitetech.com
Management
NamePosition Held
Mr. Anil Kumar AgarwalNon Executive Chairman
Mr. Pravin AgarwalVice Chairman & Whole Time Dir
Mr. Ankit AgarwalManaging Director
Mr. Sandip DasIndependent Director
Mrs. Kumud SrinivasanIndependent Director
Mr. S MadhavanIndependent Director
Mr. B J ArunIndependent Director
Ms. Amrita GangotraIndependent Director
Mr. Venkatesh MurthyDirector - Operations

FAQ

What is the latest intrinsic value of Sterlite Technologies Ltd?

The latest intrinsic value of Sterlite Technologies Ltd as on 22 November 2024 is ₹32.42, which is 71.56% lower than the current market price of ₹114.00.

What is the Market Cap of Sterlite Technologies Ltd?

The Market Cap of Sterlite Technologies Ltd is 5,549 Cr..

What is the current Stock Price of Sterlite Technologies Ltd as on 22 November 2024?

The current stock price of Sterlite Technologies Ltd as on 22 November 2024 is 114.

What is the High / Low of Sterlite Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sterlite Technologies Ltd stocks is 159/110.

What is the Stock P/E of Sterlite Technologies Ltd?

The Stock P/E of Sterlite Technologies Ltd is .

What is the Book Value of Sterlite Technologies Ltd?

The Book Value of Sterlite Technologies Ltd is 60.2.

What is the Dividend Yield of Sterlite Technologies Ltd?

The Dividend Yield of Sterlite Technologies Ltd is 0.00 %.

What is the ROCE of Sterlite Technologies Ltd?

The ROCE of Sterlite Technologies Ltd is 4.80 %.

What is the ROE of Sterlite Technologies Ltd?

The ROE of Sterlite Technologies Ltd is 3.52 %.

What is the Face Value of Sterlite Technologies Ltd?

The Face Value of Sterlite Technologies Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sterlite Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE