Sterlite Technologies Shares Jumped Over 33 Per Cent In 12 Trading Sessions

Shares of Sterlite Technologies (STL) increased about by 8.5 per cent on Tuesday (7th July) as they are hoping to get project worth of Rs 7000 crore from defence sector. It closed at Rs 84.05 on Monday (6th July) and hit fresh 52 week high of Rs 91.20 in BSE's in early morning trade. STL’s share price has already increased over 33 per cent in 12 trading sessions, which was trading at Rs 68.35 on 22nd June 2015 and today it touched Rs 91.20 in BSE.

As per the media reports Anil Agarwal, non executive chairman of the STL informed that, they already have defence project of Rs 2500 crore and also vying for another army project of Rs 7000 crore, which they have already bidden. STL also clarified BSE on Tuesday (7th July) that, the bids highlighted in the media reports are at various stages of evaluation by the authorities and not yet been opened or awarded to the Company and they don't know their current status. STL is planning to get projects worth Rs 20000 to Rs 25000 crore in a year as a part of Digital India Programme as well as STL signed an agreement with Swedish telecom gear maker Ericsson in June. Partnership with Ericsson aims to design a roadmap, deploy solutions and services to create a fully functioning knowledge based society as a part of Governments Digital India Campaign.

Earlier, the board of directors of STL approved demerger of power segment, by segregating the power and telecom segments into two separate entities. The company plans to delist the power business and continue as a pure-play telecom listed entity. The Appointed Date for the demerger was 1st April 2015 and the complete demerger process is expected to be completed by March 2016.

As per the financial statements of Q4FY15 STL had a strong order book of Rs 4711 crore as on 31st March 2015, against Rs 2521 crore at 31st March 2014 and current order book is nearly 1.5 times of the FY15 revenue. CRISIL also assigned valuation grade of 5/5 and fundamental grade 3/5 as the Q4FY15 revenues of STL increased 51.6 per cent year-on-year (yoy) and 9.5 per cent quarter-on-quarter (qoq) by healthy volume growth in the telecom segment.

STL is most integrated Optical Fiber Company in the world and it is a pioneering company for Fiber-to-the-Home (FTTH) deployment in India which enables high-speed broadband connectivity. It also develops, delivers products, solutions and infrastructure for telecom & power transmission networks, globally. STL is among the global leaders in all its business areas of Optical Fiber, Fiber Optic Cables, Power Conductors and High Voltage (HV) / Extra High Voltage (EHV) Power Cables through its operations in India, China & Brazil.