Sterlite Technologies in Focus After Nuvama Raises Target

Nuvama View Rating: BUY maintained. Target Price: Raised to ₹1,100 from ₹770. FY29 Revenue Target: ₹200 billion, more than 4× FY26 revenue. EBITDA Margin Target: 27%+, supported by better product mix and operating leverage. Order Book: More than $2 billion, providing strong revenue visibility. Capex: Around ₹10 billion annually, aimed at increasing capacity by 50% by FY29. AI and data-centre expansion is expected to drive optical fibre demand beyond traditional telecom. Higher-value solutions are targeted to achieve 25%+ attach rate by Q4FY27. Nuvama has raised its FY27/FY28 EBITDA estimates by 22%/38%. Revenue estimates have been increased by 11%/27%, while profit estimates are up 29%/40%. Growth Drivers: Order execution and strong order-book visibility. Capacity expansion and higher utilisation. Improving product mix and operating leverage. Growing optical fibre demand from AI and data centres. Increasing contribution from higher-value solutions. Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.