CLSA hikes Sterlite Tech share price target by 47%; maintains Outperform call on stock that’s up 775% YTD

Shares of Sterlite Tech gained 2% to Rs 912 on the NSE on Tuesday after international brokerage firm CLSA raised the target price of the 2026 multibagger stock by 47% while retaining its Outperform rating.

With a fresh target price of Rs 1,400 (previously Rs 950), the brokerage implies an upside potential of 55.55% from current market levels. CLSA says the company plans to expand its capacity by around 50% by FY29, with an approved expenditure of Rs 3,000 crore covering preform, optical fibre and cable capacity.

Sterlite Technologies has set a FY29 revenue target of Rs 20,000 crore, compared with Rs 4,800 crore in FY26. The brokerage expects revenue growth to be driven by demand from hyperscalers, AI data centres and enterprise customers.

Sterlite Tech bags US certification

The target price hike comes just days after the company secured Optical Fiber Nonconductive Plenum (OFNP) US certification for its Intermittently Bonded Ribbon (IBR) pre-terminated assembly portfolio, aimed at indoor AI data centre connectivity.

STL said the factory-built cable assemblies come with connectors installed, polished and tested for high performance. The assemblies are designed to eliminate the need for field splicing and equipment, helping enable faster installation and lower costs, the company said.

With the certification, STL said it is now among the global AI-ready infrastructure providers for NFPA 262-qualified indoor cable assemblies. The plenum-certified portfolio is designed for indoor applications and targets specialised deployments inside hyperscale, colocation and enterprise data centre containment zones.

Sterlite Tech Q1 results

Sterlite Technologies reported its strongest quarterly performance in Q1FY27, helped by higher demand for optical connectivity products, growth in its data centre business and a record order book linked to AI-ready digital infrastructure.

The company reported revenue of Rs 1,910 crore for the quarter ended June 30, up 87% from Rs 1,019 crore in the same quarter last year. Sequentially, revenue rose 33% from Rs 1,441 crore in Q4FY26. Profit after tax rose 870% to Rs 197 crore from Rs 10 crore a year earlier. In the March quarter, the company had reported PAT of Rs 59 crore.

Sterlite Tech shares have been one of the best performers this year, with the stock price surging 390% in the last six months and about 775% on a YTD basis.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.