Buy Sterlite Technologies, target price Rs 220: ICICI Direct

ICICI Direct has buy call on Sterlite Technologies with a target price of Rs 220. The current market price of Sterlite Technologies is Rs 182.7. Time period given by analyst is 12 months when Sterlite Technologies price can reach defined target.


Sterlite Technologies, incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 7216.83 Crore) operating in Cables sector.


Sterlite Technologies key Products/Revenue Segments include Income from Project Development, Cable Telephone System (CTS), Software Products, Sale of services, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1891.00 Crore, up 5.23 % from last quarter Total Income of Rs 1797.00 Crore and up 37.93 % from last year same quarter Total Income of Rs 1370.96 Crore. Company has reported net profit after tax of Rs 45.00 Crore in latest quarter.

The company’s top management includes Mr.Anil Agarwal, Mr.Pravin Agarwal, Dr.Anand Agarwal, Mr.Ankit Agarwal, Mr.Sandip Das, Ms.Kumud Srinivasan, Mr.S Madhavan, Mr.B J Arun. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 40 Crore shares outstanding.

Investment Rationale
The company is uniquely positioned to benefit from 5G/ FTTH deployment cycle both domestically and globally. The brokerage believes that with focus on ramping down/exiting loss making segment and improving services segment profitability, Sterlite will likely see a healthy earnings momentum ahead.