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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sterlite Technologies Ltd

About the Company - Sterlite Technologies Ltd

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 AgarwalExecutive Director
Mr. Ankit AgarwalExecutive Director
Mr. Sandip DasInd. Non-Executive Director
Mrs. Kumud SrinivasanInd. Non-Executive Director
Mr. S MadhavanInd. Non-Executive Director
Mr. B J ArunInd. Non-Executive Director

Sterlite Technologies Ltd. Share Price Update

Share PriceValue
Today₹136.30
Previous Day₹136.75

Basic Stock Data of Sterlite Technologies Ltd

Market Cap 5,795 Cr.
Current Price 145
High / Low179/128
Stock P/E57.5
Book Value 53.5
Dividend Yield0.69 %
ROCE11.0 %
ROE6.32 %
Face Value 2.00

Data Source: screener.in

Competitors of Sterlite Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Surana Telecom and Power Ltd 238 Cr. 17.521.0/7.60 9.370.00 %0.15 %1.15 % 1.00
Paramount Communications Ltd 2,486 Cr. 88.9117/27.935.6 14.20.00 %13.8 %21.2 % 2.00
Vindhya Telelinks Ltd 3,044 Cr. 2,5692,899/1,50611.0 3,1760.58 %8.11 %5.58 % 10.0
Tamil Nadu Telecommunications Ltd 64.2 Cr. 14.017.3/5.30 34.00.00 %%% 10.0
Industry Average76.8 Cr30.611.6515.140.15%5.52%6.98%5.75

Sterlite Technologies Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,3141,4751,3091,5081,2871,4971,4871,6831,8831,8721,5221,4941,322
Expenses1,0851,2191,0771,2461,2991,3671,3261,4521,6411,6161,3081,2811,232
Operating Profit230256232262-1213016123124225621421390
OPM %17%17%18%17%-1%9%11%14%13%14%14%14%7%
Other Income8313311-170-35-17-168301112
Interest50534957646868777889929594
Depreciation68617075868776767878818584
Profit before tax119172145141-179-25-186170977144-76
Tax %28%29%26%26%21%0%-33%34%33%35%27%27%22%
Net Profit86122107105-142-25-244047635232-59
EPS in Rs2.193.142.922.64-3.50-0.55-0.551.101.281.631.350.85-1.43

Sterlite Technologies Ltd Quarterly Chart

Sterlite Technologies Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6223,0922,5643,0972,1442,4493,1775,0875,1544,8255,4376,9256,210
Expenses2,4262,8652,2872,6341,6851,9292,4313,9684,0934,0184,7726,0305,437
Operating Profit1952272774634595197461,1201,061807665895773
OPM %7%7%11%15%21%21%23%22%21%17%12%13%12%
Other Income2011214910203837-1658-22-6461
Interest92106180327119123104105221203238311370
Depreciation7289133185126159182195290285308309328
Profit before tax5243-15022525749785653337797211136
Tax %25%43%-160%3,355%29%15%27%32%20%30%54%40%
Net Profit3924-40-41602183645784242654512788
EPS in Rs1.010.64-0.90-0.073.895.068.3413.9810.746.951.513.542.40
Dividend Payout %30%47%-33%-896%3%25%24%25%33%29%33%28%

Sterlite Technologies Ltd Profit & Loss Yearly Chart

Sterlite Technologies Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:17%
3 Years:10%
TTM:-5%
Compounded Profit Growth
10 Years:17%
5 Years:-18%
3 Years:-35%
TTM:-35%
Stock Price CAGR
10 Years:23%
5 Years:-9%
3 Years:-9%
1 Year:-19%
Return on Equity
10 Years:15%
5 Years:16%
3 Years:7%
Last Year:6%

Sterlite Technologies Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital79797979798080818179808080
Reserves1,0661,0811,0311,0086768001,0951,6391,8391,9081,8752,0112,056
Preference Capital00040900000000
Borrowings1,0372,8214,3385,3161,0851,0921,1782,0672,5772,9443,4753,8343,689
Other Liabilities1,1121,3851,4781,9777759381,3593,2262,6983,1243,2812,8842,629
Total Liabilities3,2935,3656,9268,3802,6142,9113,7127,0127,1958,0558,7118,8098,454
Fixed Assets9761,1171,7254,0551,1371,3131,2342,4683,0603,1743,3513,2463,149
CWIP7132,1813,5492,19317266357419133227143129188
Investments134422259164917513533330392136199
Other Assets1,5922,0221,4302,0741,2891,4831,9463,9903,6694,3505,1255,2984,918
Total Assets3,2935,3656,9268,3802,6142,9113,7127,0127,1958,0558,7118,8098,454

Sterlite Technologies Ltd Reserves and Borrowings Chart

Sterlite Technologies Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 323283264393215488729631696638584226
Cash from Investing Activity -455-1,495-1,727-1,172-128-232-586-1,172-624-615-481-55
Cash from Financing Activity 2501,5451,079850-81-187-152570-6823115-132
Net Cash Flow118333-38471669-92944621839

Sterlite Technologies Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days936881981211021009711111011596
Inventory Days55537483781229787679512192
Days Payable109106138180141164188281212296319238
Cash Conversion Cycle391518157608-97-34-91-83-50
Working Capital Days29-30-50-135372483442899297
ROCE %8%5%3%5%8%20%27%30%19%12%8%11%

Sterlite Technologies Ltd Financial Efficiency Indicators Chart

Sterlite Technologies Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters54.46%54.36%54.24%54.20%54.16%54.15%54.11%54.10%54.06%54.05%53.99%53.99%
FIIs5.11%6.04%6.31%7.01%6.14%5.99%7.91%7.87%7.99%7.16%5.45%4.75%
DIIs8.63%9.73%10.09%7.08%7.97%7.21%3.76%2.87%2.09%1.99%1.91%1.96%
Public31.80%29.87%29.36%31.71%31.72%32.65%34.22%35.16%35.86%36.81%38.63%39.31%
No. of Shareholders1,83,7151,75,8451,83,2611,80,0851,97,7232,06,3922,10,9552,11,0852,05,9292,07,5132,25,5712,30,463

Sterlite Technologies Ltd Shareholding Pattern Chart

No. of Sterlite Technologies Ltd Shareholders

Sterlite Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Nifty Smallcap 250 Index Fund1220670.181.74
Motilal Oswal Nifty Smallcap 250 Index Fund762810.181.09
SBI Nifty Smallcap 250 Index Fund598750.180.86
ICICI Prudential Nifty Smallcap 250 Index Fund285010.180.41
HDFC NIFTY Smallcap 250 ETF165360.180.24
HDFC Nifty Smallcap 250 Index Fund133360.180.19
Motilal Oswal Nifty 500 Index Fund76990.020.11
Edelweiss Nifty Smallcap 250 Index Fund31050.180.04
ICICI Prudential S&P BSE 500 ETF19960.020.03
HDFC S&P BSE 500 Index Fund3750.020.01

Sterlite Technologies Ltd ROCE Trend

Sterlite Technologies Ltd EPS Trend

Sterlite Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)3.531.566.9810.8914.01
Diluted EPS (Rs.)3.501.556.9010.7713.83
Cash EPS (Rs.)10.809.2613.5117.6919.20
Book Value[Excl.RevalReserv]/Share (Rs.)52.3851.3552.5850.0845.08
Book Value[Incl.RevalReserv]/Share (Rs.)52.3851.3552.5850.0845.08
Revenue From Operations / Share (Rs.)173.13144.67121.65127.60126.38
PBDIT / Share (Rs.)23.2714.9421.5227.3228.92
PBIT / Share (Rs.)15.556.7514.3320.1324.07
PBT / Share (Rs.)7.781.099.2113.4121.45
Net Profit / Share (Rs.)3.081.076.3210.5114.35
NP After MI And SOA / Share (Rs.)3.521.566.9410.7413.98
PBDIT Margin (%)13.4410.3217.6921.4122.88
PBIT Margin (%)8.984.6611.7715.7719.04
PBT Margin (%)4.490.757.5710.5016.97
Net Profit Margin (%)1.770.745.198.2311.35
NP After MI And SOA Margin (%)2.031.075.708.4111.06
Return on Networth / Equity (%)6.743.1613.8622.6032.73
Return on Capital Employeed (%)18.646.9615.7725.1733.73
Return On Assets (%)1.590.703.416.018.02
Long Term Debt / Equity (X)0.470.780.630.500.54
Total Debt / Equity (X)1.751.691.251.151.12
Asset Turnover Ratio (%)0.650.640.590.721.01
Current Ratio (X)0.941.020.990.940.96
Quick Ratio (X)0.790.830.850.830.81
Inventory Turnover Ratio (X)3.764.835.195.207.19
Dividend Payout Ratio (NP) (%)14.18128.1050.1939.2017.20
Dividend Payout Ratio (CP) (%)4.4420.4824.6623.4812.77
Earning Retention Ratio (%)85.82-28.1049.8160.8082.80
Cash Earning Retention Ratio (%)95.5679.5275.3476.5287.23
Interest Coverage Ratio (X)2.992.464.214.9911.03
Interest Coverage Ratio (Post Tax) (X)1.731.052.253.196.55
Enterprise Value (Cr.)9050.0011800.9410038.394634.3810578.99
EV / Net Operating Revenue (X)1.312.052.080.892.08
EV / EBITDA (X)9.7219.8611.764.209.09
MarketCap / Net Operating Revenue (X)0.841.551.600.491.73
Retention Ratios (%)85.81-28.1049.8060.7982.79
Price / BV (X)2.814.573.871.345.12
Price / Net Operating Revenue (X)0.841.551.600.491.73
EarningsYield0.020.010.030.160.06

Sterlite Technologies Ltd Profitability Ratios (%)

Sterlite Technologies Ltd Liquidity Ratios

Sterlite Technologies Ltd Liquidity Ratios (%)

Sterlite Technologies Ltd Interest Coverage Ratios (X)

Sterlite Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sterlite Technologies Ltd

Fair Value: ₹195.76

The stock is undervalued by 35.01% compared to the current price ₹145

*Investments are subject to market risks

Strength and Weakness of Sterlite Technologies Ltd

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -13.08, which is a positive sign.
  2. The company has higher reserves (1,391.15 cr) compared to borrowings (31.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.69 cr) and profit (251.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 16.17 and average Dividend Yield of 12.04%.
  2. The stock has a low average ROCE of 13.00%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 38.58, which may not be favorable.

Should I Buy Sterlite Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sterlite Technologies Ltd:
    1. Net Profit Margin: 1.77%
      • 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: 18.64% (Industry Average ROCE: 5.52%)
      • 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. Interest Coverage Ratio (Post Tax): 1.73
      • 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.
    4. Quick Ratio: 0.79
      • 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.
    5. ✗ Stock P/E: 53.8 (Industry average Stock P/E: 11.7)
      • 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.
    6. ✗ Total Debt / Equity: 1.75
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.
YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-38.46%-266.67%90.00%4100.00%36.25%66.97%58.79%-26.64%-37.50%-83.02%182.22%
Change in YoY Net Profit Growth (%)0.00%-228.21%356.67%4010.00%-4063.75%30.72%-8.18%-85.43%-10.86%-45.52%265.24%

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