Shares of Sterlite Technologies surged to a record high on Friday, closing 5% higher at Rs 441.40. This significant uptick comes after global brokerage CLSA issued an 'outperform' call on the optical and digital solutions firm, dramatically increasing its price target.
CLSA Upgrades Target Price to Rs 655
CLSA has raised its target price for Sterlite Technologies shares to Rs 655, a substantial 62% increase from its previous target of Rs 405. The brokerage firm's bullish outlook is largely driven by a new $1 billion (approximately Rs 10,000 crore) order secured by a Sterlite Technologies subsidiary from a major US hyperscaler.
The company announced that its subsidiary received a Product Award Letter (PAL) for a multi-year supply of optical connectivity products. This contract spans financial years FY27 to FY29, with purchase orders expected to be released incrementally throughout the period.
Driving Growth in the Data Centre Boom
Analysts at CLSA believe this substantial order positions Sterlite Technologies to achieve a 49% EBITDA Compound Annual Growth Rate (CAGR) in the coming years. They specifically highlighted this as a significant win for Sterlite Technologies' AI DC optical products, capitalizing on the ongoing multi-year data centre boom across North America and India.
The company's market capitalization climbed to Rs 21,456 crore following Friday's trading. Over the past year, Sterlite Technologies shares have seen an impressive 544% rise, with a 351.74% gain over two years.
About Sterlite Technologies
Sterlite Technologies is a global technology company specializing in the design, construction, and management of advanced digital networks. Its core business encompasses optical communication products, comprehensive network and system integration services, and sophisticated Operations Support Systems (OSS) / Business Support System (BSS) software solutions. The company maintains a global presence, operating across six continents and in over 100 countries.