what will be the effect on sterlite
Latest Investor Presentation:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/5bc28849-1d8b-432e-b4f8-98546cda3182.pdf
Highlights:
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In my view Sterlite Tech is at best a trading stock. It will not create shareholder wealth. If only Sterlite had a different set of promoters there would be huge value. Good business with wrong promoters. This is because of the promoter group, that is dodgy, unethical and extremely minority shareholder unfriendly. The promoter group has a poor track record for corporate governance and trampling investor interest including the recent Vedanta de-listing, Sterite Tech - Power de-merger; Sterlite Tech pledging for Vedanta. It is very difficult to generate wealth with this promoter group
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i think , one need to see the price performance in line with market , company own fundamental and perception of investor with change in price . sterlite has kept its journet in high growth pe trajectory till nov18 when rest of midcap stock ( majortiy of them ) made top from nov 18 to jan18 . with fibra price falling for one china tender , sterlite correction also gathered momentum with slowing growth and fear of midcap correction .
general mkt sentiment & across the board sell of due to covid has presented unique opportunity for investor in sterlite technology in terms of favourable price , huge growth visibility in changing world due to covid .
it seems turning the cycle in favour of investors once again , it may go in to high growth , high margin and high pe … triple benefit !!!
i am invested , views are biased , increasing allocation , please do your own research , my investment style and temperament may differ with most of the investors .
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Just saw this in the presentation
Anuj Jain (President, Network and JioFiber Business)
STL has been our partner since inception. As we enhance our value proposition for our customers,
STL as our network partner is enabling the reach of our digital solutions to the last mile. Such
disruptive and integrated last-mile connectivity service offering enables us to
connect everyone, everything, everywhere at the highest quality and the most affordable
price.
Jio is aggressively pursuing fiber connectivity PAN India.
One would need an estimate of revenue from Jio to predict STL’s growth.
Overall it seems a positive
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Jio money spilling over to stl does not look that straightforward.
- We can expect commodity play
- along service and network infra side - we need know the scope of collaboration with jio. Does google/facebook own network player cos?
Reliance has official stake in Himachal futuristic . Their 20 % turnover comes from jio. They may benefit more.
Disc . Invested
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Expansion of Optical Fibre Cables(OFC)
Sterlite has capacity of 18 mn.fkm which is evident from MPCB report Consent to expand in March 2019.pdf (2.6 MB)as well as Investor presentation of July 2020.
In May 2020, Sterlite Tech Cables (Subsidiary) has got consent for expansion of 8 mn.fkm which will lead to investment of Rs.104.60 cr as per MPCB report.
May 2020 expansion will increase capacity by 44% from existing capacity 18 mn.fkm .MPCB May 2020.pdf (2.5 MB)
Total Capacity will be 26 mn.fkm after expansion.
Expansion in OFC cables will make him retain the leader in OFC cables in the coming year.
Better than expected results.
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The current quarter is an absolute washout unfortunately. Net profit dropped by 98% over the previous year to Rs 2.85 crore, while revenues were down 38.81% at Rs 876 crore.
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Sterlite has a plant in China and its revenue coming from China is 3%. It is already on a declining trend. I think it should not impact much. On the other side, when India puts anti-dumping duty, Sterlite is at an advantage.
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Biggest Positive for Sterlite
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Could you explain your rationale behind, better than expected results, people were optimistic before the results & after Q1FY21, such disappointments were never expected from sterlite tech!
I guess market is still considering this as a commodity business which is going through a downturn. Many competitors are increasing capacity and no real pricing power is available. Service business is developing but still major revenue from cable business . D/E is high and over 1 now .
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This whole Vedanta delisting fiasco has kind of shaken my faith in Sterlite Tech as well. It brings home the point that if the promotor is crooked and does not want to share wealth with minority shareholders, then no matter how strong the business is, shareholders will not make money. Will seek an exit at a reasonable level soon.
Invested since end 2018 at an average of 140
Same here …I started buying in 2017 @90-100 then sold 25% in 2018 @400. Then added again @200 around price… Then added more @70-80 during Apr-20.
Already sold 70% of Sterlite share in last 1 month after this Vedanta incident …
Company will do good in future but i m no longer conformable holding the stock … It used to be 20% of my PF now down to 6-7%
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I got in recently as I liked their new plans and company seems to be pivoting from just a fiber optic manufacturer to a full service telecom and network consulting company with significant revenue pipeline in 5G implementation.
I am thinking of completely getting out after the Vedanta incident, Anil Agarwal is definitely a crook and I don’t think he wants any other shareholder of any of his companies to make money other than himself.
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I worked with Sterlite team(Elitecore the OSS/BSS team not the fiber side) for last 3yrs now as a client 
… In terms of future product they have good products …
New dTelco product got selected in global telecom award.
In terms of future plan of the company its good but only concern is risk related to promoter.
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