AI Summary
✦ ClarthaSterlite Technologies is a telecom equipment manufacturer supplying optical connectivity infrastructure. Optical fibre, specialty cables, and connectivity products drive its core revenue, alongside multiverse and access-network distribution solutions and the Neox communication platform. Its ₹960-crore, multi-year fibre supply deal improves revenue visibility and could support manufacturing utilisation and margins, although the precise margin benefit remains undisclosed. Profit growth rose 145.5% year-on-year against 19.3% revenue growth, while margins remained stable, suggesting operating leverage or a low-base effect. ROE is unavailable, and debt/equity of 85.63 indicates extreme leverage that can materially distort and pressure shareholder returns. At 138.9 times earnings, the stock is overvalued and trades at a substantial premium to its growth rate. Neutral sentiment reflects the open question of whether contract-led growth can justify this multiple while leverage remains elevated.
Valuation Metrics
Trading 397.3% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +3.76). Confidence: 50%.
Live forward EPS implies next-12-month EPS of ₹22.75. Applying the stock's normalized valuation corridor produces a fair range of ₹563.97 to ₹737.33, with base value near ₹635.41 (-0.4% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹22.75
Forward P/E
28.0x
Base Fair Value
₹635.41
Fair Range
₹563.97 - ₹737.33
Upside To Base
-0.4%
Estimate Source
Live forward EPS
Growth Estimate
+1755.0%
5Y Average
39.39
Current
138.89
Overvalued
32.41
Undervalued
24.79
5Y Average
1.65
Current
5.81
Overvalued
1.60
Undervalued
1.08
5Y Average
11.93
Current
42.00
Overvalued
11.55
Undervalued
7.79
Peers & Comparison
Sector: Communication Services · Theme: Telecom Equipments
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
HFCL LIMITED HFCLTelecom Equipments | +119.9% | 9.6% | 55.3x Premium | +26% vs avg | +184.2% |
ITI LTD ITITelecom Equipments | -40.0% | 13.4% | 93.8x Premium | +114% vs avg | -6.1% |
TEJAS NETWORKS LIMITED TEJASNETTelecom Equipments | +99.1% | -70.4% | — | — | -8.8% |
TATA COMMUNICATIONS LTD TATACOMMTelecom Services | +10.5% | 3.7% | 52.4x Premium | +20% vs avg | +5.4% |
VODAFONE IDEA LIMITED IDEATelecom Services | +3.2% | 77.1% | 4.0x Undervalued | -91% vs avg | +92.9% |
INDUS TOWERS LIMITED INDUSTOWERTelecom Infrastructure | +4.6% | 21.8% | 13.6x Undervalued | -69% vs avg | +14.4% |
STERLITE TECHNOLOGIES LTD trades at a premium (138.6x vs peer avg 43.8x), implying higher growth or quality expectations from the Telecom Equipments cohort. Peers include HFCL LIMITED, ITI LTD, TEJAS NETWORKS LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Financial chart data is not available for this company right now.
Results
Income statement data not available.
All values in ₹ Crores unless otherwise stated. Source: Company filings.