Sterlite Technologies Surges 5% on Rs 3,000‑Cr Capex Plan to Expand Capacity
NEWZA Editorial Team••Source: MoneyControl
NEWZAFinancial Intelligence Feed
⚡ Key Financial Takeaways
Sterlite's 5% share rise follows a Rs 3,000‑cr capex plan to add 50% capacity, aiming for 1.5× capacity by FY29.
Expansion driven by global optical fibre demand and AI data‑centre growth, with projected FY29 revenue of Rs 200 billion and margin 27%.
Brokerage CLSA rates the stock 'Outperform' with target Rs 950, implying >33% upside from today’s close.
Capital Expenditure Boost Sterlite Technologies announced a Rs 3,000‑crore capital expenditure plan to expand its existing manufacturing facility. The expansion will increase installed capacity by roughly 50%, taking the company from a 70% utilisation rate to a higher output level by FY29. Shares rose 5%, hitting the NSE upper circuit limit at Rs 748.90 per share.
Market Reaction and Analyst Outlook Following the after‑market announcement, the stock recovered a 0.15% loss from Thursday and surged to the trading ceiling. Brokerage CLSA now rates the stock 'Outperform' with a target price of Rs 950, signalling a potential upside of more than 33% from the current close. The analyst highlighted the firm’s pivotal position amid rising demand for optical fibre cables and AI‑driven data‑centre infrastructure.
Future Growth Prospects Sterlite plans to add 1.5 times its current capacity, investing Rs 10 billion annually, including a new greenfield plant in India. The company projects FY29 revenue of Rs 200 billion versus the broker’s estimate of Rs 104 billion, with a margin of 27% against the expected 23%. The expansion is expected to tap into the Indian data‑centre market, which is projected to grow from 1.5 GW to 10 GW by 2030, and strengthen global relationships in the home market.
Topics:#Sterlite Technologies#Capex#Optical Fibre#AI Data Centres#NSE
