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Sterlite Technologies Ltd logo

Sterlite Technologies Ltd

NSE: STLTECH BSE: 532374

106.35

(6.44)%

Sat, 31 Jan 2026, 02:29 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.1x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
  • Sterlite Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Sterlite Technologies's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Sterlite Technologies's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Sterlite Technologies's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Sterlite Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Communications industry average.
  • An improvement in Sterlite Technologies's performance (ROE) is expected over the next 3 years.
  • Sterlite Technologies's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Sterlite Technologies is expected to increase but not above the 50% threshold in 2 years time.
  • Sterlite Technologies's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
  • Sterlite Technologies's earnings growth is positive but not above the India market average.
  • Sterlite Technologies's earnings are expected to decrease over the next year.
  • Sterlite Technologies's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Sterlite Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Sterlite Technologies's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Sterlite Technologies is profitable, therefore cash runway is not a concern.
  • Sterlite Technologies is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (31.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.7x debt.
  • Sterlite Technologies's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (350% vs 108.8% today).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
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Cons

  • Sterlite Technologies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Sterlite Technologies's level of debt (108.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Sterlite Technologies board of directors is about average.
  • The average tenure for the Sterlite Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Anand's remuneration is higher than average for companies of similar size in India.
  • Anand's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

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Pros

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    Cons

    • Sterlite Technologies has significant price volatility in the past 3 months.

    past

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    Pros

    • Sterlite Technologies has delivered over 20% year on year earnings growth in the past 5 years.
    • Sterlite Technologies used its assets more efficiently than the IN Communications industry average last year based on Return on Assets.
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    Cons

    • Sterlite Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Sterlite Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Whilst Sterlite Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
    • Sterlite Technologies's 1-year earnings growth is negative, it can't be compared to the IN Communications industry average.

    value

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    Pros

    • Sterlite Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Sterlite Technologies is good value based on expected growth next year.
    • Sterlite Technologies is good value based on earnings compared to the IN Communications industry average.
    • Sterlite Technologies is good value based on earnings compared to the India market.
    • NSEI:STRTECH is up 1.8% along with the Communications industry (2.1%) over the past month.
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    Cons

    • Sterlite Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
    • Sterlite Technologies is overvalued based on assets compared to the IN Communications industry average.
    • STRTECH underperformed the Communications industry which returned -29.7% over the past year.
    • STRTECH underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:STRTECH is up 1.8% underperforming the market in India which returned 8% over the past month.

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