1 hr ago
Nirmal Bang Sees 40% Upside in Sterlite Technologies
Sterlite Technologies makes fibre-optic cables and other products that help carry internet data.
Its shares have risen sharply this year.
Nirmal Bang believes demand could grow as data centres expand and more broadband and mobile networks are built.
The brokerage expects the company’s sales and profits to rise in the coming years.
It also expects the company to sell more products that connect data centres.
North America has become a larger part of Sterlite’s business.
Nirmal Bang says the company may benefit as some US customers seek suppliers outside China.
It gives the shares a 'buy' rating and a target price of Rs 1,340.
The brokerage also warns that its forecasts face pricing, growth and expansion risks.
Sterlite Technologies shares rose 3.7% to Rs 989.70, up about 1,070% from their 52-week low.
Nirmal Bang expects AI and data-centre growth, broadband programmes, and 5G and 6G roll-outs to boost demand for optical fibre.
The brokerage projects revenue of Rs 9,625.6 crore in FY27 and Rs 16,828.8 crore by FY29.
It expects connectivity revenue to increase from Rs 590 crore in FY26 to Rs 3,320 crore by FY29.
Nirmal Bang rates the stock 'buy' with a Rs 1,340 target price, implying about 40% upside from its previous close.
- Who
- Sterlite Technologies and brokerage Nirmal Bang.
- What
- Nirmal Bang issued a 'buy' rating and Rs 1,340 target price for Sterlite Technologies, citing growth prospects.
- Where
- The company operates internationally; the article highlights North America and a South Carolina facility.
- When
- The share-price report was published on Monday; the article also cites FY26, Q1 FY27 and forecasts through FY29.
- Why
- Nirmal Bang expects demand from data centres, broadband programmes and 5G and 6G roll-outs to support the company’s growth.
Growth case
Risks and uncertainty
Demand and earnings outlook
Growth case
Nirmal Bang expects data-centre expansion, broadband investment and 5G and 6G roll-outs to increase demand and support revenue, margins and returns.
Risks and uncertainty
The brokerage says its forecasts account for potentially slower data-centre and connectivity growth, moderating optical-fibre prices and risks in expanding capacity.
North America and supply chain
Growth case
Nirmal Bang says Sterlite’s South Carolina facility, customer relationships and non-China supply chain could help it benefit as US customers diversify sourcing; it also cites tariffs above 100% on China-origin fibre-optic cables.
Risks and uncertainty
The article does not present a separate opposing assessment of this opportunity, but notes the brokerage’s broader execution and growth risks.
Key facts
- Share price on Monday
- Rs 989.70, up 3.7%
- Rise from 52-week low
- About 1,070% from Rs 84.65
- Market capitalization
- About Rs 51,000 crore
- Nirmal Bang rating
- Buy
- Nirmal Bang target price
- Rs 1,340, implying about 40% upside from the previous close
- Revenue forecast
- Rs 9,625.6 crore in FY27 and Rs 16,828.8 crore by FY29
- FY29 OFC volume forecast
- 68 million fibre-km, compared with 32 million fibre-km in FY26
- North America revenue share
- Rose from 39% in FY26 to 54% in Q1 FY27
Sources
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