Sterlite Tech: 690% in a year, priced at 208 times

Sterlite Technologies Limited (NSE: STLTECH) went from ₹122 in October 2025 to ₹955 on 1 October 2026, a rise of almost 690% in one year. The market cap is ₹49,110 crore. What happened Q1 FY27 revenue was ₹1,910 crore, up 87%. EBITDA nearly tripled to ₹385 crore at 20% margin. Net profit was ₹197 crore against ₹10 crore. Data centres are 21% of revenue, up from 1% in FY26. North America's share rose to 54%. STL booked ₹13,100 crore of fresh orders in Q1, 1.7 times all of FY26. The open order book reached ₹18,618 crore. A BSE filing dated 1 October disclosed a hyperscaler supply deal worth about USD 1.2 billion through December 2030. Why it matters STL makes optical fibre cables. Every chip inside an AI server farm communicates over it. As America builds more data centres, STL earns more. My view The business has genuinely turned around. Just two years ago this company posted losses. The June quarter was the best in its history. But the price leaves no room. At 208 times trailing earnings, one weak quarter hurts. The order book is real, but the USD 1.2 billion deal is a framework. Purchase orders come periodically, and penalties are capped if demand falls short. The stock sits in Stage IV surveillance. Buyers pay the full amount upfront, price moves are capped at 5% a day, and promoter stake has slipped to 42.29%. Revenue leans on a few large hyperscaler customers whose AI budgets can shift fast. What I am watching Q2 FY27 results in late October, margin above 20%, and orders converting to billed revenue. On the chart, ₹700 is the first real support. My stance: Do not chase. Wait for ₹700. The business is real; the price is a leap of faith. Disclosure: I do not hold a position in Sterlite Technologies Limited at the time of writing. This is not investment advice.