Sterlite delivered a strong Q2 FY27 performance, with revenue growing 144.6% YoY to 2,529 crore, driven by demand from AI data centres, telecom networks, and FTTxc.The brokerage highlights that Sterlite Technologies maintains a durable competitive moat, underpinned by the ongoing wave of global hyperscale data center capex. Even as broader industry commentary flags a potential medium-term moderation in data center spending, Sterlite is poised to pull forward growth through accelerated order book execution.
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Nirmal Bang Report
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Following Sterlite Technologies Ltd.'s stellar Q2 resutls, Nirnal Bang has maintained its Buy rating on the stock with a raised target price of Rs 1,544 from Rs 1,340, implying a potential upside of 87% from the reports market price.
The brokerage highlights that Sterlite Technologies maintains a durable competitive moat, underpinned by the ongoing wave of global hyperscale data center capex.
Even as broader industry commentary flags a potential medium-term moderation in data center spending, Sterlite is poised to pull forward growth through accelerated order book execution.
The company's current order book stands at a robust ~Rs 35,200 crore, of which ~Rs 3,000 crore is executable in Q3 FY27, with the remainder spread across the subsequent nine quarters.
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This provides high execution visibility over the next 10 quarters at an average run-rate of ~Rs 3,000 crore to 3,200 crore per quarter, which will be further augmented by healthy pipeline inflows.
Factoring in this front-loaded delivery and sustained high-margin growth, Nirmal Bang has maintained its target valuation multiple of 20 times blended FY28E/FY29E EV/Ebitda.
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