Sterlite Technologies Limited (STLTECH) AI Stock Analysis

• Market Cap: ₹51.49B
• Dividend Yield: N/A
• Average Volume (3M): 109.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -14.27%
• EPS Growth: 78.52%
• Country: IN
• Employees: 1,296
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.10
• Shares Outstanding: 488,018,620
• 10 Day Avg. Volume: 116,158
• 30 Day Avg. Volume: 109,979
• PEG Ratio: -0.34
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 19.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 147.19
• Revenue Forecast (FY): ₹3.84T

• Rating: 47 Neutral
• Price Target: ₹104.00 ▼(-0.81% Downside)

Sterlite Technologies Limited is facing significant financial and technical challenges. The company's declining revenue and profitability, coupled with bearish technical indicators, weigh heavily on its stock score. The negative P/E ratio further suggests potential overvaluation, making the stock less attractive to investors.

Positive Factors

5G Network Expansion

The company's focus on 5G networks positions it well to capitalize on the growing demand for advanced connectivity solutions, supporting long-term revenue growth.

Strategic Partnerships

Strategic partnerships with telecom operators help secure long-term contracts and expand market presence, providing a stable revenue stream.

Digital Transformation Projects

Participation in digital transformation projects aligns with industry trends, driving demand for connectivity solutions and ensuring sustained business growth.

Negative Factors

Revenue Decline

A decline in revenue growth indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial performance.

Profitability Pressure

Decreasing profit margins suggest operational inefficiencies and competitive pressures, which could hinder the company's ability to generate sustainable profits.

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Sterlite Technologies Limited Business Overview & Revenue Model

Company Description

Sterlite Technologies Limited manufactures and sells connectivity and network solutions in India and internationally. It offers optical fiber cables, specialty cables, glass preforms, and optical interconnect kits; virtualized access solutions; and network software products. The company also provides system integration services, such as network design, fiber rollout, network O&M, and data center network services; and private enterprise network services. Sterlite Technologies Limited was founded in 1988 and is based in Pune, India. Sterlite Technologies Limited is a subsidiary of Twin Star Overseas Limited.

How the Company Makes Money

STLTECH generates revenue primarily through the sale of telecommunications infrastructure products, including optical fibers, cables, and associated hardware. The company has a diverse revenue model that includes direct sales to telecommunications operators, enterprises, and government agencies. Key revenue streams include the provision of advanced network services and solutions, particularly in the deployment of 5G technology and broadband infrastructure. Additionally, STLTECH collaborates with various strategic partners and telecom operators, which helps to enhance its market reach and secure long-term contracts. The company's involvement in digital transformation projects further contributes to its earnings, as demand for robust connectivity solutions continues to grow.

Sterlite Technologies Limited Financial Statement Overview

Summary

Sterlite Technologies Limited faces challenges in maintaining revenue and profitability, with a notable deterioration in net income and cash flow performance. While the balance sheet remains somewhat stable, operational and financial improvements are necessary to reverse the negative trends and ensure long-term sustainability.

Income Statement

Sterlite Technologies Limited has experienced a decline in revenue over the past few years, with a significant drop in net income from a profit in 2021 to a loss in 2025. Gross profit margin has decreased alongside EBIT and EBITDA margins, indicating pressure on profitability. The company needs to address declining sales and improve operational efficiency to restore financial stability.

Balance Sheet

The balance sheet shows a relatively stable equity position, with a debt-to-equity ratio that suggests moderate leverage. The company maintains a reasonable equity ratio, but the decline in stockholders' equity over time and increased liabilities highlight a need to manage debt levels carefully to prevent financial strain.

Cash Flow

Operating cash flow has fluctuated, and free cash flow has turned negative at times, indicating potential liquidity challenges. The free cash flow to net income ratio is concerning due to recent net losses. Improving cash generation and managing capital expenditures are crucial for strengthening financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.97B	39.96B	40.83B	68.46B	53.94B	48.01B
Gross Profit	21.66B	19.95B	23.98B	15.83B	11.14B	10.41B
EBITDA	5.53B	4.52B	5.72B	9.31B	7.40B	8.37B
Net Income	-680.00M	-1.23B	-510.00M	1.41B	600.00M	2.75B
Balance Sheet
Total Assets	0.00	55.27B	83.31B	88.65B	87.45B	80.73B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.51B	4.65B	6.65B	5.28B	4.24B
Total Debt	0.00	19.26B	33.76B	38.34B	34.76B	29.44B
Total Liabilities	-19.90B	35.37B	63.08B	67.70B	67.03B	59.87B
Stockholders Equity	19.90B	19.90B	20.23B	20.91B	19.57B	19.87B
Cash Flow
Free Cash Flow	0.00	2.15B	5.11B	-1.49B	-1.03B	1.83B
Operating Cash Flow	0.00	3.48B	7.91B	2.27B	5.74B	6.38B
Investing Cash Flow	0.00	-890.00M	-2.09B	-580.00M	-4.71B	-6.19B
Financing Cash Flow	0.00	40.00M	-6.91B	-1.32B	1.15B	232.00M

Sterlite Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STLTECH, the sentiment is Negative. The current price of 104.85 is below the 20-day moving average (MA) of 112.92, below the 50-day MA of 116.78, and above the 200-day MA of 95.52, indicating a neutral trend. The MACD of -3.15 indicates Positive momentum. The RSI at 37.18 is Neutral, neither overbought nor oversold. The STOCH value of 11.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STLTECH.

Sterlite Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPHASIS	73 Outperform	₹526.28B	29.44	―	2.03%	8.73%	11.33%
KPITTECH	69 Neutral	₹316.65B	38.87	―	0.70%	13.34%	5.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	59 Neutral	₹76.66B	95.04	―	―	46.80%	201.41%
HFCL	56 Neutral	₹111.01B	398.50	―	0.14%	-19.16%	-92.64%
TEJASNET	54 Neutral	₹84.36B	―	―	0.51%	-17.23%	-185.73%
STLTECH	47 Neutral	₹51.49B	―	―	―	-14.27%	78.52%

Sterlite Technologies Limited Corporate Events

STL Strengthens Leadership in US and Europe to Boost Growth

Sterlite Technologies Limited announced the appointment of experienced senior executives to enhance its growth in the US and Europe, aiming to expand its regional presence and deliver next-generation optical solutions. The new leadership team includes Jimi Barker as Chief Business Officer for Data Centres, Tom Boswell as Head of Presales for Europe/UK Optical Connectivity Business, and Amir Sekhawat as Business Head of Copper Business. These strategic appointments are expected to bolster STL’s market positioning and drive innovation in the telecommunications and data infrastructure sectors.