Sterlite Tech – A Good Company to Acquire

Sterlite Technologies - Latest Results

(in Cr.)
Sep-11
Jun-11
FY10-11
Revenue
707.28
547.33
2,262.55
Net Profit
12.66
5.23
140.53
EPS
0.32
0.13
3.95
Cash EPS
0.72
0.51
5.51
OPM %
7.57
8.04
12.45
NPM %
1.79
0.96
6.21
 
 
 
 
Sterlite Technologies - Latest Results

Sterlite Technologies - Share Price Movement

 
 
 
Weekly H/L
31.05
28.4
Monthly H/L
37.35
28.1
52 Weeks H/L
80.25
28.1
 
( 4 Jan 11 )
( 20 Dec 11 )
Delivery / Var+ELM %
29.73
17.06
 
 
 
Sterlite Technologies - Share Price Movement

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Sterlite Tech – A Good Company to Acquire

Sterlite Tech – A Good Company to Acquire
Sterlite Tech – A Good Company to Acquire | Source

Sterlite Tech – A Good Company to Acquire


Good quarterly results

Sterlite Technologies has produced commendable results for the quarter ended 30.09.11 compared to the quarter ended 30.06.11. Both revenue and net profit have increased sizeably during the quarter. The company’s fundamentals and balance sheet are strong. The shares of Sterlite Tech are traded in the Indian stock markets at Rs.30 now (BSE 25.12.11). The shares of the company are available in both BSE and NSE. Its order book is worth over Rs.2000 crore. The company has a positive approach towards capacity expansion. It has an attractive business model with excellent growth prospects. The company operates in the field of heavy electrical equipments. It is the market leader in India in power conductors. It is among the top players of the world in optic fibre cables. The company bagged 40% of the power conductor order from Power Grid Corporation of India.

New factory in Aurangabad

The company also enjoys superior margins. The company caters to transmission and telecom industries. Both the sectors are doing well though there are problems with telecom industry due to the 2G spectrum scandal. These two sectors will see investments aggregate Rs.3.4 trillion in the next five years. The rollout of 3G services and the expected penetration of broadband services will ensure good growth for the company’s products catering to the telecom sector. Sterlite Tech received the letter of intent for the acquisition of two transmission units of PFC Consulting Ltd for strengthening transmission system in the western region. The company is planning to set up factory for producing LCD glass and panels in Aurangabad in Maharashtra State. The investment cost involved is around Rs.9500 crore spread over the next ten years.

Biggest transmission project in India

The company’s subsidiary Sterlite Transmission Projects has secured a Rs.2900 crore transmission package from PFC Consulting. It is the biggest transmission project in India that was awarded through competitive bidding route. The company emerged the lowest bidder in BSNL’s 3.2 million line broadband tender floated in July this year. The contract is worth Rs.114 crore.

Buy the shares for medium and long term holding for decent gains

Investors can purchase the shares of Sterlite Technologies at the current market price and also accumulate the stock at declines for medium and long term investment for decent gains.

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