Archive · 5 Oct 2026
Nirmal Bang Sees 40% Upside in Sterlite Technologies
Sterlite Technologies makes optical-fibre cables and products that help carry data.
Its shares rose sharply, though the articles describe the gains over different time periods in different ways.
Nirmal Bang thinks demand could grow as data centres expand and more broadband and mobile networks are built.
The brokerage expects the company to sell more and earn more in the coming years.
It also expects sales of products that connect data-centre equipment to grow.
A subsidiary has agreed to supply optical connectivity products to a hyperscale partner from 2026 through 2030, with a potential contract value of nearly $1.2 billion.
Nirmal Bang gives the shares a 'buy' rating and a Rs 1,340 target price.
It also says its forecasts allow for slower growth, lower fibre-price momentum and challenges in expanding capacity.
Sterlite Technologies shares reached Rs 989.70 on Monday, with articles reporting gains of about 3.7% to nearly 4%.
The stock was reported up roughly 1,069% to 1,070% from its 52-week low of Rs 84.65; one article also cited an 860% year-to-date gain.
Nirmal Bang expects AI and data-centre expansion, broadband programmes, and 5G and 6G roll-outs to support demand for optical fibre and connectivity products.
The brokerage forecasts revenue of Rs 9,625.6 crore in FY27 and Rs 16,828.8 crore by FY29, and projects optical-fibre volumes to rise from 32 million to 68 million fibre-km.
Nirmal Bang rates the stock 'buy' with a Rs 1,340 target price, implying about 40% upside; it flags pricing, growth-ramp and capacity-expansion execution risks.
- Who
- Sterlite Technologies and brokerage Nirmal Bang Institutional Equities.
- What
- Nirmal Bang issued a 'buy' rating and Rs 1,340 target price for Sterlite Technologies, citing growth prospects.
- When
- The share-price reports refer to Monday, 5 October; the subsidiary's supply agreement was announced on 1 October.
- Where
- Sterlite Technologies' business spans more than 100 countries; the articles highlight North America and its South Carolina facility.
- Why
- Nirmal Bang expects data-centre expansion, broadband programmes and 5G and 6G roll-outs to boost demand for the company's products.
Growth case
Risks and uncertainty
Demand and financial 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 moderation in optical-fibre pricing and a slower data-centre and connectivity ramp-up.
Expansion and supply opportunities
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; the articles also cite tariffs above 100% on China-origin fibre-optic cables.
Risks and uncertainty
The brokerage identifies execution risks linked to capacity expansion; the articles do not provide a separate opposing assessment of the North American opportunity.
- Reported Monday share price
- Rs 989.70
- 52-week low
- Rs 84.65 on 27 January
- Reported gains
- About 1,069% to 1,070% from the 52-week low; one article cited an 860% year-to-date rise
- Nirmal Bang rating and target
- Buy; Rs 1,340, implying about 40% upside from the previous close
- Revenue forecasts
- Rs 9,625.6 crore in FY27 and Rs 16,828.8 crore by FY29
- Optical-fibre volume forecast
- 32 million fibre-km in FY26 to 68 million fibre-km by FY29
- Connectivity supply agreement
- A subsidiary agreement covers annual supply from 2026 to 2030, with nearly $1.2 billion potential contract value
- North America revenue share
- Rose from 39% in FY26 to 54% in Q1 FY27
