Shares of Sterlite Technologies Ltd. reached an upper circuit for a second consecutive session on Monday, closing 5% higher at Rs 787.65. The surge follows the company's recent investor meeting where it unveiled an ambitious growth roadmap, prompting brokerage Nuvama to significantly increase its price target for the telecom equipment stock.
Ambitious 'Lakshya' Roadmap Targets FY29
Sterlite Technologies' newly announced 'Lakshya' roadmap outlines aggressive targets for the fiscal year 2029. The company aims to achieve a revenue of Rs 20,000 crore, which represents more than a four-fold increase from its FY26 levels. Additionally, Sterlite Technologies is targeting an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin exceeding 27%.
Brokerage Boosts Outlook and Price Target
Following the disclosure of these targets, Nuvama analysts revised their estimates for Sterlite Technologies. The brokerage increased its FY27 and FY28 EBITDA estimates by 22% and 38% respectively, reflecting the company’s strong revenue, profitability, and capital expenditure guidance. Consequently, Nuvama raised its price target for Sterlite Technologies shares by 62% to Rs 1,100 from its previous target of Rs 770, while maintaining a 'buy' recommendation.
Strategic Capacity Expansion Underway
To support its ambitious growth projections, Sterlite Technologies has approved a substantial Rs 3,000 crore capital expenditure (capex) plan. This investment is earmarked for expanding the capacity of its existing manufacturing facilities. The company intends to increase its production capabilities by approximately 50% from the current installed base. This proposed expansion is targeted for completion by the end of FY29, aligning with its revenue and profitability goals.
Market Reaction and Performance
The positive news has significantly impacted Sterlite Technologies shares, which have demonstrated robust performance. The stock has climbed 334% over the last six months and seen a remarkable 669% gain throughout 2026. Technical indicators also suggest a strong uptrend, with the stock trading above its 10-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages. Its Relative Strength Index (RSI) of 70.3 indicates strong buying interest, though it borders on overbought territory. With a beta of 1.37, the stock has shown higher volatility compared to the broader market.
Sterlite Technologies operates as a global technology company, specializing in designing, building, and managing digital networks. Its offerings include optical communication products, network and system integration services, and operations/business support system software solutions, serving clients across six continents and over 100 countries.