Sterlite Technologies Ltd Multibagger?

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Pee Vee
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Sterlite Technologies Ltd Multibagger?

Post by Pee Vee » Tue Jul 10, 2018 8:17 pm

Research report by NVS Brokerage Private Limited about Sterlite Technologies Ltd:

Sterlite Technologies Ltd. (STL), a member of the Vedanta Group, is currently headed by Mr. Anil Agarwal, Chairman and STL has dominant presence in manufacturing of Optic Fiber Cables (OFC), Structured Data Cables, Customer Premise Equipments and Cable accessories. STL IS THE ONLY CABLE COMPANY IN THE WORLD TO BE FULLY INTEGRATED from Silicon to Software with an installed capacity of 30 Million Fiber Km (MfKm).

STL operates and owns manufacturing facilities across India, China and Brazil along with two software delivery centers. The fiber manufacturing capacity of STL post expansion will reach 50 MfKm by June 2019 with a capacity utilization of 85 – 100%.

For FY2018 STL topline grew by 24% to Rs. 3,231 Crs. (Rs. 2,605 Crs.), EBITDA increased by 46% to Rs. 775 Crs. (Rs. 530 Crs.) and PAT grew by whopping 67% to Rs. 364 Crs. (Rs. 218 Crs.). A BEST PERFORMING YEAR IN THE COMPANY’S HISTORY on back of improvement in capacity utilization, robust demand conditions across the globe. STL has more than tripled its international revenues over last three years along with the highest ever order book of over Rs. 5,200 Crs.

Recently STL is set to acquire Metallurgica Bresciana S.p.A., a European specialised OFC manufacturer, for Euro 47 Millions (Rs. 380 Crs.) in an all-cash deal. The acquisition will help STL to add 3 MfKm cabling capacity. The acquisition will significantly expand STL market presence in Europe and will bring tier 1 customers, augment the product portfolio and enhance the flexibility and ability to better serve the European market.

STL plans to sell around 50 MfKm by FY2020 (almost 150% jump from 21MfKm) with a likely EBITDA of over Rs. 1,415 Crs. and PAT of over Rs. 650 Crs. on an equity share capital of Rs. 80 Crs. and a modest Market Capitalization of around Rs. 12,100 Crs. making it one of the most attractive investment in India and firmly establishing its leadership position as the Numero Uno Cable Manufacturing Company in India

STL, at the CMP of Rs. 302 per share, STL is available at an P/E multiple of around 19 times its FY2020E EPS of Rs. 16 and P/BV of around 5 times its FY2020E BVPS of Rs. 61, making it one of the most attractive investment opportunity amongst its peers. – A MUST FOR ALL INVESTORS.

valuepicker
Posts: 135
Joined: Mon Jan 09, 2017 8:44 am

Re: Sterlite Technologies Ltd Multibagger?

Post by valuepicker » Thu Jul 12, 2018 8:14 am

As part of smartcity rollouts each state is going for fibre optic cables. The cable demand far exceeds the supply and prices have shot up due to this. This will result in higher margins alonwith higher revenue numbers.

Pee Vee
Site Admin
Posts: 429
Joined: Mon Dec 26, 2016 10:45 pm

Re: Sterlite Technologies Ltd Multibagger?

Post by Pee Vee » Thu Jul 12, 2018 5:21 pm

I am feeling tempted to add the stock on every decline :)

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