Equity | India | Telecom Services
Sterlite Technologies Ltd.
Banking on technology….. November28, 2017
BUY
Analyst
Omkar Tanksale
+91-22- 6614 2692 [email protected] Institutional Research 1
Initiating Coverage
CMP (`) Target (`)
270 346
Potential Upside Absolute Rating
28% BUY
Market Info (as on November27, 2017)
BSE Sensex 26899.6
Nifty S&P 8288.6
Stock Detail
BSE Group A
BSE Code 532374
NSE Code STRTECH
Bloomberg Code SOTL IN
Market Cap (`bn) 1078.5
Free Float (%) 45.7%
52wk Hi/Lo 307/93.5
Avg. Daily Volume (NSE) 427877
Face Value / Div. per share (`) 2.0 / 0.97
Shares Outstanding (mn) 427
Shareholding Pattern (in %)
Promoters Public
54.55 45.45
Financial Snapshot (`mn)
Y/E Mar FY16 FY17 FY18E FY19E
Net Sales 21,608 24,489 29,255 35,399
EBITDA 4,521 5,189 6,294 6,699
PAT 1,511 2,166 2,922 3,294
EPS 3.8 5.0 6.8 7.7
ROE (%) 20% 25% 28% 27%
ROCE (%) 23% 24% 29% 28%
P/E 23.6 53.3 39.2 34.8
EV/EBITDA 9.1 23.2 18.5 17.3
Share Price Performance
Rel. Perf. 1Mth 3 Mths 6Mths 1Yr
Sterlite (%) 4.3 15.4 18.7 36.7
SENSEX (%) (0.1) (4.8) (3.3) 7.7
Source: Company data, Institutional Research
Company Snapshot
Sterlite Technologies Ltd. an unique product play
Sterlite Technologies Ltd. (Sterlite) is global leader in the optical telecommunication products
and head quartered in Pune and has operation all over India and abroad. Sterlite Tech is a pure
play Telecom Products, Services & Software Company that transforms lives by delivering smarter
networks. Sharing a common lineage with Vedanta Resources Plc., Sterlite Tech is among the
global leaders in Optical Communication Products such as optical fibers, fiber optic cables and
data cables through its operations in India, China, Brazil and sales network across 5 continents.
Sterlite Tech products have enabled top telecom operators with smarter networks in more than
75 countries across the world.
Investment Rationale
The company has unique business structure that has focused portfolio
Sterlite Technologies specialize in the telecommunication sector and has focused themselves on
the three business platforms viz Product vertical, service vertical and software vertical. Sterlite
Tech products have enabled top telecom operators with smarter networks in more than 75
countries across the world. This wide reach and unique product structure gives Sterlite edge over
its peers and also helps to attain higher growth momentum. Under the Telecom Services
offerings, with expertise in designing, engineering, building & managing broadband networks,
Sterlite Tech is developing several network projects, such as secure network for the Armed Forces
under Network for Spectrum, enabling rural broadband through BharatNet, developing Smart
Cities, and establishing high-speed Fiber-to-the-Home (FTTH).
Rising global fiber demand can create better business opportunity
China is considered to be largest consumer of the optical fiber. It is having 55% of world cable
demand. Broadband China initiative leading to higher FTTH penetration to increase fiber network
deployment in China. Sterlite is taking the advantage of the rising demand in the market and
make business structure more robust. We believe that this strategy of expanding the business will
help them to grow in higher momentum.
System integration can be a great opportunity
System integration vertical is also one the major vertical the company is working on. System
integration is one of the most upcoming business opportunities in India. The new initiatives taken
by the central government like digital India can create a better business opportunity. There is
huge demand for the smart cities and have huge growth prospects for the company to grow. The
company has got the stronger order book for the vertical. In the recent quarters Sterlite received
an order for the 3 cities including Ahmadabad. The company has also selected as one of the two
global fiber cables supplier to a large Telco capturing over 65% of the market share.
Valuation
At the CMP of `270, Sterlite Technologies Ltd. is trading at 53.3 xs, and39.2x its FY17, and FY18E
EPS of `5.0 and `6.8. Compared to its peers; Sterlite is trading at a discount P/E multiple, even
though its margins are better than or comparable to peers. We initiate coverage on Sterlite with
a BUY rating and attach a multiple of 45x xs to Sterlite’s FY19E earnings (EPS) to arrive at the
target price of `346, indicating a potential upside of 28%.
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Sterlite BSE Sensex
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 2
Index & Content
Sr. No. Topic Page No.
1 Company Background 3
3 Key Management Personnel 4
4 Investment Rationale 5
5 Revenue Growth Drivers 7
7 Key Risks 10
8 SWOT Analysis 11
9 Michael Porter’s Five Force Analysis 12
10 Valuation & Outlook 13
11 Financials 14
12 Disclaimer 15
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 3
Company Background
Sterlite Technologies is global leader in the optical telecommunication products and head
quartered in Pune and has operation all over in the India and abroad. Sterlite Tech is a pure
play Telecom Products, Services & Software Company that transforms lives by delivering smarter
networks.
Sharing a common lineage with Vedanta Resources Plc., Sterlite Tech is among the global leaders
in Optical Communication Products such as optical fibers, fiber optic cables and data cables
through its operations in India, China, Brazil and sales network across 5 continents. Sterlite Tech
products have enabled top telecom operators with smarter networks in more than 75 countries
across the world.
Under the Telecom Services offerings, with expertise in designing, engineering, building &
managing broadband networks, Sterlite Tech is developing several network projects, such as
secure network for the Armed Forces under Network for Spectrum, enabling rural broadband
through BharatNet, developing Smart Cities, and establishing high-speed Fiber-to-the-Home
(FTTH).
In 2015, Sterlite Tech broadened its offerings portfolio to include Telecom Software by acquiring
highly customizable OSS & BSS software solutions suite through Elitecore. With many industry
firsts to its credit, Sterlite Tech is home to India’s only Centre of Excellence for broadband
research, and a strong portfolio of over 100 patents.
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 4
Key Management Personnel
Sterlite has experienced management which helps company to attain desired growth over the
period of time.
Anil Agarwal, Non-Executive Chairman
Anil Agarwal founded Sterlite Group in 1976 and has been overseeing its operations since its
inception. He is the Executive Chairman of Vedanta Resources Plc and also the Chairman Emeritus
of Sesa Sterlite Limited. He has over three decades of experience in business strategy, general
management and commercial matters.
Pravin Agarwal, Vice Chairman & Whole Time Director
Pravin Agarwal is closely involved with Sterlite Group’s operations in India since inception. He has
been instrumental in the growth of Sterlite's Telecom and Power businesses. His rich experience
in general management and commercial matters spans over three decades.
Dr. Anand Agarwal, Chief Executive Officer
Dr Anand Agarwal joined Sterlite in 1995 and held key positions in manufacturing, quality
assurance and business development. He was working with Siemens prior to Sterlite. He has
completed B. Tech. in Metallurgical Engineering from IIT-Kanpur and Master’s and Ph.D. from the
Rensselaer Polytechnic Institute.
K. S. Rao, COO – Telecom Products & Solutions
K. S. Rao joined Sterlite in 1993 and has, since, held various positions in the Company's Telecom
business. His key focus areas have been engineering, manufacturing, product development,
project management and business development. K. S. Rao holds a Bachelor’s degree in
Mechanical Engineering.
Anupam Jindal, Chief Financial Officer
Anupam Jindal joined Sterlite Group in 1998 and worked with the Group's aluminium foils and
copper cables businesses before heading finance for Sterlite's mining operations in Australia. His
key work areas have been finance, treasury, accounts and MIS. Anupam is a Chartered Accountant
from the Institute of Chartered Accountants of India.
Ankit Agarwal, Director - Telecom Products
Ankit Agarwal joined Sterlite in 2007 and heads the Telecom Products division. He has an
experience of above 10 years. In addition, he is responsible for identifying and executing
strategic opportunities for Sterlite globally, including mergers and acquisitions, joint ventures
and greenfield projects. Ankit holds a Bachelor's degree from University of Southern California
and MBA from London Business School.
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 5
Investment Rationale
The company has a unique business structure that have focused portfolio
Sterlite Technologies specialize in the telecommunication sector and has focused themselves on
the three business platforms viz Product vertical, service vertical and software vertical.
Optical Communication Products such as optical fibers, fiber optic cables and data cables
through its operations in India, China, Brazil and sales network across 5 continents. Sterlite Tech
products have enabled top telecom operators with smarter networks in more than 75 countries
across the world.
Under the Telecom Services offerings, with expertise in designing, engineering, building &
managing broadband networks, Sterlite Tech is developing several network projects, such as
secure network for the Armed Forces under Network for Spectrum, enabling rural broadband
through BharatNet, developing Smart Cities, and establishing high-speed Fiber-to-the-Home
(FTTH).
In 2015, Sterlite Tech broadened its offerings portfolio to include Telecom Software by acquiring
highly customizable OSS & BSS software solutions suite through Elitecore. With many industry
firsts to its credit, Sterlite Tech is home to India’s only Centre of Excellence for broadband
research, and a strong portfolio of over 100 patents.
Product vertical includes manufacturing of optical communication products. Sterlite technology is
one the leading player in the optical fiber and optical fiber cables manufacturing. The company
has manufacturing capacity of 25 Mn km in the optical fiber space. Strong demand from china will
likely to continue in the upcoming tenure.
Focused on the connectivity opportunity
Source: Company data, Institutional Research
As shown in the above diagram the company has focus on 3 verticals to attain higher growth
model. The company has focus on five different business areas which can help them to grow
with higher momentum. Rising demand from the International markets can create a huge
business opportunity. Domestically also Indian telecom space, digitalization, defense and
other utilities, smart cites rural broadband will provide huge opportunity to the company. We
believe that this strategic initiative by the company can create huge potential to grow in the
upcoming tenure.
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 6
Rising global fiber demand can create better business opportunity
Source: Company data, Institutional Research
As shown in the above diagram the global demand for the optical fiber cable is up by 11%. We are
also expecting the global demand likely to increase in the upcoming period. China is considered
to be largest consumer of the optical fiber. It is having 55% of world cable demand. Broadband
China initiative leading to higher FTTH penetration to increase fiber network deployment in
China. Sterlite is taking the advantage of the rising demand in the market and make business
structure more robust. We believe that this strategy of expanding the business help them to grow
in higher momentum.
Source: Company data, Institutional Research
As we can see the demand for the system integration is rising. We can see there is huge demand
for the smart cities and have huge growth prospects for the company to grow. In the recent
quarters Sterlite received an order from 3 cities including Ahmedabad. The company has also
selected as one of the two global fiber cables supplier to a large Telco capturing over 65% of the
market share. Higher capacity utilization helps company to grow with the higher momentum. We
believe that Sterlite will realize its gains through capacity utilization.
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 7
Revenue Growth Drivers
Product Business at a glance
Sterlite technologies offer specialized telecom products in their portfolio. Sterlite is one of the
leading manufacturers of the optical fiber and optical fiber cables. Sterlite Technologies offers a
wide array of cable designs for the various needs of underground installations: from dielectric
cables, to steel tape armor, dielectric armor, ribbon tape, antirodent protection, microcables
and many other customized designs. In urban environments where space for optical fiber cable
installation is limited, their microcables have proven to be a key element to bring more density
of fiber to the homes in small conduits. The company has strong patent portfolio of 55 granted
patents across globe and break through products. Sterlite has strong global foot print in terms of
business and manufacturing capabilities.
Source: Company data, Institutional Research
In the upcoming period global demand for the optical fiber and optical fiber cables are likely to
remain strong which will drive the revenue growth. We believe that the company also has enough
capabilities in terms of product quality and manufacturing capacity. Domestic business demand
will likely to remain robust. Will help Sterlite to grow with higher momentum.
Raw Material Preform Optic Fiber Of Cable
• Silica & Power
• Certain natural gases
• Integrated
Core rod + cladding
• 25m fkm
Capacity• Expanding
capacity to
30m fkm
• 15m fkm
Capacity• Portfolio
Catering to
diverse end use
High end technology, fully integrated, global scale operations for
manufacturing optical fibers
Strong patent portfolio 55 granted patents across the globe and
break through products
Center of Excellence - Dedicated
to Nation
System & Network Lab
Glass and reliability Lab
Optical characteristics Lab
Source: Company data, Institutional Research
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 8
Network and System Integration Business at a glance
Sterlite is one of the leading service providers of the network and system integration services to
telecom service companies. The digital revolution is around the corner with Digital India, E-
governance, Smart Cities, IoT and Big Data/Analytics taking a definite shape. Sterlite is at the
forefront of this technological revolution with experience and expertise in undertaking end-to-
end creation of telecom infrastructure & applications. Sterlite helps service providers to capture
the fastest time-to-market and revenue with its deep domain expertise and the strength of
consulting services, offerings on best-in-class multi-vendor technology and software platforms to
build future-proof networks.
The company offers Telecom infra service which includes OFC infrastructure, civil infra, Data
center infra, passive infra, OFC execution etc. The company provides end to end solutions and all
the infrastructure services to its clients.
Source: Company data, Institutional Research
Network infrastructure services are also one of the main infrastructure services vertical where
Sterlite is operative. Sterlite has expertise in providing transport layer services, Access – Metro-E,
FTTH, Wifi, IBS, Optics and &MPLS core network , Enterprise Services, security services,
broadband infrastructure services. We believe that network integration services are one of the
key service areas in terms of revenue growth. The company has better long term perspective.
Third service offering vertical is application services. This vertical is technology specific vertical
under this vertical the company provides data centers applications, Analytics and big data
applications, content delivery networks etc. The company also offers customer centric services
like virtualization, messaging services, surveillance services etc.
Source: Company data, Institutional Research
Software Services will have higher growth momentum
Digital
India
Smart
Cities
Fiber Infra
Network
Access
Solution
ManageIntegratedBuildDesign
ICT Application
Active Network
Passive Network1
2
3
OpportunitiesServices
System
Integration
Network
Integration
>1,000
>10,000
>5,000
Under ExecutionBid – Participated –
Result AwaitedPipeline
>16,000SI Projects
Total
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 9
Elitecore Technologies, founded in 1999, is a part of Sterlite Technologies Limited. It is a global
IT product company providing BSS alongside packet core with flexibility of modular and pre-
integrated offerings. Adhering to TM Forum and 3GPP standard, Elitecore telecom offerings are
compatible to large vendor ecosystem addressing to operator’s requirement of faster time-to-
market and better TCO. As experienced IP solutions player, Elitecore products are highly
responsive to next-generation services, fulfilling operator monetization needs across the access
networks. Elitecore has over 150+ network deployments for 52 service providers with presence
across 40+ countries. Diagram company website.
Elitecore serves as a very good entry in the OSS/ BSS space and the wider telecom software
space. The Company will help transform Sterlite from a capital-intensive driven growth to
knowledge and services driven growth. Elitecore helps to build capabilities in the services and
solutions space, thus creating a new facet within the telecoms value chain. Together, Sterlite
and Elitecore will be able to offer complete suite of products and solutions for telecom service
providers and become a partner of choice, be it fibre & cable portfolio, network creation and
software solutions.
Source: Company data, Institutional Research
Way to Play
Lay
er
Pre
sen
ce
Own product business Partnering for solutions Integration
Network& Control
OSS &Middle-
ware
BSS &Business
Appz
System Integrators (SIs)
Telecom Equipment Manufacturers (TEMs)
1
2
3
4
Middleware (MW)
Pure play BSS/OSSplayers Typically build on their
strong integration skills
Specialized
BSS/OSS players
Leverage their network and
control core capabilities to
offer solutions with own
and partner products
Selectively partner for
solutions and don't offer
integration services
Landscape in Telecom OSS/BSS SpaceSterlite Tech addressable :
CurrentGlobal OSS-BSS Market
$8.2 Bn
FY15(Current Market)
$12.3 Bn
FY’18(New Geo’s)
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 10
Key Risks
Investment Risk :
Slowdown in the telecom infra spending may affect the business on the higher nod.
Change in the economic climate / legislation against Indian offshore development in the
countries where the company provides its services.
The company has business to business structure this will lead to limited client supply
which contributes significant part of the top line. Loss of one client may impact
significant part of the top line.
The company needs to have higher capital expenditure to attain higher growth which
may impact ROE and ROCE negatively.
New technology may affect the FOC business substantially. This can also be a biggest
threat to its business.
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 11
SWOT Analysis
Sterlite
Technologies
Ltd
Strengths
• Strong domain focus
• Very well Diversification of
business.
• Strong management and
Technology backup
Opportunities
• Further penetration in
telecom industry
• Mining the existing and new
clients
Weaknesses
• High client concentration
• Single domain dependence
Threats
• Slowdown in telecom
infrastructure spending
• Loss of top client
Source: Company data, Institutional Research
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 12
Michael Porter’s Five Force Analysis
Inter-firm Rivalry–High
Lower Entry barriers in
the industry have led to
high concentration in
the industry.
Threat of new entrants –
Increasing
• Growing demand for FOC
consumption due to higher
penetration may attract other
players. .
Bargaining Power of
Suppliers – High
• Less competition in FOC puts
lesser pressure on suplier.
Bargaining Power of Buyers –
Increasing
• More no of supplier may put
pricing pressure and bargaining
power of buyers may increasing.
Threat from Substitutes -
Increasing
• New technologies wireless
communications may put pressure
on the business
Source: Company data, Institutional Research
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 13
Valuation & Outlook
At the CMP of `270, Sterlite Technologies Ltd. is trading at 53.3 xs, and39.2x its FY17, and FY18E
EPS of `5.0 and `6.8. Compared to its peers; Sterlite is trading at a discount P/E multiple, even
though its margins are better than or comparable to peers. We initiate coverage on Sterlite with
a BUY rating and attach a multiple of 45x xs to Sterlite’s FY19E earnings (EPS) to arrive at the
target price of `346, indicating a potential upside of 28%.
1 year forward P/E Chart
Source: Capitaline, Institutional Research
1 year forward P/ BV Chart
Source: Capitaline, Institutional Research
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Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 14
Income Statement
Y/E Mar (`mn) FY15 FY16 FY17 FY18E FY19E
Net revenues 30,971 21,608 24,489 29,255 35,399
Operating Expenses 26,364 17,087 19,299 22,962 28,700
Y/E Mar (`mn) FY15 FY16 FY17 FY18E FY19E
EBITDA Margin (%) 15% 21% 21% 22% 19%
Depreciation 1,850 1,309 1,592 1,522 1,550
Other Income 513 128 116 175 200
Interest (Net) 3,269 1,133 1,110 1,200 1,200
Exceptional Items - - - - -
PBT 1 2,208 2,602 3,747 4,149
PBT Margin (%) 0% 10% 11% 13% 12%
Tax 37 637 397 749 830
Adjusted PAT (36) 1,571 2,205 2,998 3,319
Extraordinary Items - - - - -
Reported PAT (26) 1,511 2,166 2,922 3,294
Balance Sheet
Y/E Mar (`mn) FY15 FY16 FY17 FY18E FY19E
Equity capital 788 790 797 797 797
Reserves & Surplus 10,081 6,756 8,004 9,461 11,401
Net worth 10,869 7,546 8,801 10,258 12,198
Total debt 44,359 4,686 4,271 4,250 4,175
Deferred Tax Liability 474 491 397 500 450
Short term borowings 6,219 3,573 5,910 4,250 5,210
Trade payables 8,997 3,701 4,486 6,011 6,120
Short term provision 6,878 4,616 3,440 4,750 4,750
Total Current Liabilities 22,576 12,578 14,091 15,661 16,205
Total Liabilities & Equity 83,922 26,962 29,507 32,519 35,578
Tangible assets 40,390 9,924 11,921 13,113 14,687
Intangible assets 162 1,538 1,036 1,191 1,334
Capital WIP 21,926 1,740 659 725 798
Intangible assets WIP 1 - 171 188 150
Total Non-Current Assets 62,478 13,201 13,786 15,217 16,968
long term loans and advances
1,335 737 71 1,000 1,000
Debtors 8,344 6,982 6,867 6,412 6,500
Cash & bank 3,759 808 1,374 4,150 5,575
Loans & advances 2,405 1,091 - 1,500 1,000
Other Current Assets 386 1,354 2,802 1,620 1,500
Total Assets 83,922 26,404 29,507 32,519 35,578
Key Ratio
Y/E Mar (`mn) FY14 FY15 FY16 FY17E FY18E
Per Share Ratios
Fully diluted E P S
(0.1)
3.8
5.0
6.8
7.7
Book Value
29
19
21
24
29
Dividend per share
236
395
588
818
922
Valuation Ratio
P/E -
23.6
53.3
39.2
34.8
P/BV
1.9
4.7
13.1
11.2
9.4
EV/EBITDA
13.7
9.1
23.2
18.5
17.3
EV/Sales
2.0
1.9
4.9
4.0
3.3
Growth Ratios
Sales Growth 21% -30% 13% 19% 21%
EBITDA Growth 67% -2% 15% 21% 6%
Net Profit Growth - - 43% 35% 13%
EPS Growth - - 33% 37% 0%
Common size Ratios
EBITDA Margin 15% 21% 21% 22% 19%
EBIT margin 11% 15% 15% 17% 15%
PAT margin 0% 7% 9% 10% 9%
Operating Expenses 85% 79% 79% 78% 81%
Return ratios
RoNW 0% 20% 25% 28% 27%
RoCE 5% 23% 24% 29% 28%
Turnover ratios (days)
Debtors ( Days) 98 118 102 80 67
Creditors ( Days) 106 63 67 75 63
Solvency Ratios
Total Debt/Equity
5.6
1.9
1.8
1.6
1.6
Interest coverage
1
3
3
4
4
Source: Company data, Institutional Research
Cash Flow
Y/E Mar (`mn) FY14 FY15 FY16 FY17E FY18E
PBT 1 2,208 2,602 3,747 4,149 Add: Depreciation 1,850 1,309 1,592 1,522 1,550
Other Adjustments
4,847
2,664
3,379
4,394
4,824 Chg in working capital (702) (2,266) (2,671) (2,836) (2,716) Taxes paid (220) (540) (397) (749) (830)
CF from operations 3,927 2,066 312 808 1,278 Change in fixed assets (11,592) (2,226) (415) (1,413) (1,789) Purchase of investment 0 (16) (300) (450) (450) Proceeds from investment sale 80 6 25 25 25
Other Adjustments
1,810
556
700
750
750 CF from Investing acti.
(11,718)
(2,189)
(440)
(1,713)
(2,089)
Chg in debt
22,206
2,072
(415)
(21)
(75) Dividend & dividend tax
(117)
(234)
(709)
(982)
(1,107)
Interest paid
(5,746)
(1,301)
(1,110)
(1,200)
(1,200)
Other Adjustments
0
(31)
(95)
(120)
(120) CF from financing acti.
8,500
(818)
892
3,682
2,235
Chg in cash
709
(941)
764
2,776
1,424
Opening cash
842
1,551
610
1,374
4,150
Closing cash
3,759
808
1,374
4,150
5,575
Du-Pont Analysis (%) FY14 FY15 FY16 FY17E FY18E PAT/ PBT -2400 68 83 78 79 PBT/ PBIT 0 66 70 76 78 PBIT / Sales 11 15 15 17 15 Sales / Assets 50 150 159 174 183 Assets/ Equity 564 191 175 164 159 ROE 0 20 25 28 27
Equity | India | Telecom Services
Sterlite Technologies Ltd. November28, 2017
BUY
Institutional Research | Initiating Coverage 15
NOTES
Recommendation Rationale
Recommendation Expected Absolute Return (%) over 12 months
BUY >15%
ACCUMULATE <10% and >15%
NEUTRAL <-10% and <10%
REDUCE >-10% and <-20%
SELL >-10
Expected absolute returns are based on share price at market close unless otherwise stated. Stock recommendations are based on absolute upside (downside) and have a 12-month
horizon. Our target price represents the fair value of the stock based upon the analyst’s discretion. We note that future price fluctuations could lead to a temporary mismatch
between upside/downside for stock and our recommendation. Name Designation Email Contact
Omkar Tanksale Sr. Analyst - Fundamental Research [email protected] 91 (22) 6614 2692
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