Sterlite Tech shares jump 5% after CLSA upgrade
Major contracts for AI data centers and strong Q1 results drive investor confidence.
1CLSA upgrade fuels stock rally
Sterlite Technologies shares rose 5% after CLSA upgraded the stock to 'Outperform' with a target price of Rs 950, implying a 68% upside potential. The stock has surged 466% in 2026, making it one of the market's top performers.
2Strong order book signals growth
Sterlite Tech's order book grew 155% QoQ to Rs 18,600 crore, reflecting robust growth prospects. CLSA raised its forecasts by 7-125% after considering the QIP fundraising and Q1 FY27 beat, projecting a 62% EBITDA CAGR.
3Major contracts for AI data centers
Sterlite Tech secured a $1.11 billion multi-year contract to supply optical connectivity products for AI data centers. It also received over $100 million in hyperscaler orders for its Neuralis portfolio, addressing the need for higher fiber density in AI workloads.
4Improved financial position
Sterlite Tech achieved a net debt-free balance sheet after raising Rs 1,500 crore via QIP. CRISIL and ICRA upgraded its credit ratings, affirming the company's strengthened financial health, which is critical for managing larger orders.
5Record Q1 performance
Sterlite Tech reported its strongest quarter in Q1FY27 with revenue of Rs 1,910 crore and an 870% jump in net profit. EBITDA margin hit 20.8%, the highest in 20 quarters, driven by demand for AI-ready infrastructure and data center growth.
6Strategic focus on AI infrastructure
Sterlite Tech is rapidly scaling its data center business to align with AI infrastructure demands. With a record order book and customer trust, the company aims to deliver innovative solutions, positioning itself for long-term growth in the AI and data center boom.
Original article: Economic Times — Sterlite Tech hisseleri CLSA yükseltmesiyle yüzde 5 yükseldi