ScoreWhy is Sterlite Technologies Ltd ?
1
Weak Long Term Fundamental Strength with a -4.51% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.37 times
- The company has been able to generate a Return on Equity (avg) of 2.63% signifying low profitability per unit of shareholders funds
2
With a growth in Net Profit of 233.9%, the company declared Outstanding results in Jun 26
- The company has declared positive results for the last 6 consecutive quarters
- ROCE(HY) Highest at 7.48%
- NET SALES(Q) Highest at Rs 1,910.00 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 7.00 times
3
With ROCE of 6.8, it has a Very Expensive valuation with a 7.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 315.10%, its profits have risen by 1518.9% ; the PEG ratio of the company is 0.1
4
Market Beating performance in long term as well as near term
- Along with generating 315.10% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sterlite Tech. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sterlite Tech. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sterlite Tech.
318.56%
5.01
62.85%
Sensex
-4.62%
-0.34
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.42%
EBIT Growth (5y)
-4.51%
EBIT to Interest (avg)
1.02
Debt to EBITDA (avg)
5.83
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
1.03
Tax Ratio
30.77%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
32.98%
ROCE (avg)
5.66%
ROE (avg)
2.63%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
111
Industry P/E
45
Price to Book Value
11.78
EV to EBIT
55.77
EV to EBITDA
34.18
EV to Capital Employed
7.30
EV to Sales
5.02
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
6.77%
ROE (Latest)
2.39%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Bullish
OBV
Mildly Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend35What is working for the Company
ROCE(HY)
Highest at 7.48%
NET SALES(Q)
Highest at Rs 1,910.00 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 7.00 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.86 times
PBDIT(Q)
Highest at Rs 385.00 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 20.16%
PBT LESS OI(Q)
Highest at Rs 245.00 cr.
PAT(Q)
Highest at Rs 197.00 cr.
EPS(Q)
Highest at Rs 4.02
-3What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 323.00 cr
Loading Valuation Snapshot...
Here's what is working for Sterlite Tech.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 245.00 cr has Grown at 2412.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 9.75 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 197.00 cr has Grown at 1353.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 13.56 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,910.00 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 1,910.00 cr has Grown at 60.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,187.75 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 7.00 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 385.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 20.16%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 245.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 197.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.02
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.86 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Sterlite Tech.
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 323.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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