Sterlite Technologies Ltd (STLTECH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Valiant Commun.

Indus Towers

Sterlite Tech.

HFCL

Vindhya Telelink

Suyog Telematics

Optiemus Infra

GTL Infra.

ITI

Tejas Networks

Pace Digitek

Why is Sterlite Technologies Ltd ?

Weak Long Term Fundamental Strength with a -16.46% 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 5.48 times
The company has been able to generate a Return on Equity (avg) of 6.21% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

PAT(9M) Higher at Rs 12.00 Cr
DEBT-EQUITY RATIO(HY) Lowest at 0.94 times
DEBTORS TURNOVER RATIO(HY) Highest at 5.36 times

With ROCE of 5.1, it has a Expensive valuation with a 3.1 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 191.07%, its profits have risen by 109.8% ; the PEG ratio of the company is 4.8

High Institutional Holdings at 21.98%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How 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.

191.07%

2.95

64.85%

Sensex

-2.38%

-0.19

12.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.66%

EBIT Growth (5y)

-16.46%

EBIT to Interest (avg)

0.96

Debt to EBITDA (avg)

5.81

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

1.03

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

21.98%

ROCE (avg)

6.24%

ROE (avg)

6.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

541

Industry P/E

Price to Book Value

4.48

EV to EBIT

55.65

EV to EBITDA

21.01

EV to Capital Employed

3.06

EV to Sales

2.44

PEG Ratio

4.78

Dividend Yield

ROCE (Latest)

5.06%

ROE (Latest)

0.19%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

PAT(9M)

Higher at Rs 12.00 Cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.94 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.36 times

NET SALES(Q)

Highest at Rs 1,257.00 cr

-7What is not working for the Company

PBT LESS OI(Q)

At Rs -15.00 cr has Fallen at -3100.0% (vs previous 4Q average

PAT(Q)

At Rs -2.00 cr has Fallen at -300.0% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 373.00 cr

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Here's what is working for Sterlite Tech.

Net Sales - Quarterly

Highest at Rs 1,257.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,257.00 cr has Grown at 22.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,026.00 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.94 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 5.36 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sterlite Tech.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -15.00 cr has Fallen at -3100.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.50 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -2.00 cr has Fallen at -300.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.00 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 373.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents