Sterlite Technologies Limited
Sterlite Technologies Limited Fundamental Analysis
Sterlite Technologies Limited (STLTECH.BO) shows weak financial fundamentals with a PE ratio of 327.35, profit margin of 1.18%, and ROE of 2.70%. The company generates $47.6B in annual revenue with weak year-over-year growth of -3.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STLTECH.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakSTLTECH.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTLTECH.BO shows balanced valuation metrics.
Growth Score
WeakSTLTECH.BO faces weak or negative growth trends.
Financial Health Score
ModerateSTLTECH.BO shows balanced financial health with some risks.
Profitability Score
ModerateSTLTECH.BO maintains healthy but balanced margins.
Key Financial Metrics
Is STLTECH.BO Expensive or Cheap?
P/E Ratio
STLTECH.BO trades at 327.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STLTECH.BO's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Sterlite Technologies Limited at 8.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.57 times EBITDA. This signals the market has high growth expectations.
How Well Does STLTECH.BO Make Money?
Net Profit Margin
For every $100 in sales, Sterlite Technologies Limited keeps $1.18 as profit after all expenses.
Operating Margin
Core operations generate 5.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.70 in profit for every $100 of shareholder equity.
ROA
Sterlite Technologies Limited generates $0.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sterlite Technologies Limited generates limited operating cash flow of $2.68B, signaling weaker underlying cash strength.
Free Cash Flow
Sterlite Technologies Limited produces free cash flow of $1.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.84 in free cash annually.
FCF Yield
STLTECH.BO converts 1.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
327.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How STLTECH.BO Stacks Against Its Sector Peers
| Metric | STLTECH.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 327.35 | 26.78 | Worse (Expensive) |
| ROE | 2.70% | 1280.00% | Weak |
| Net Margin | 1.18% | -41741.00% (disorted) | Weak |
| Debt/Equity | 0.86 | 0.69 | Weak (High Leverage) |
| Current Ratio | 0.98 | 8.99 | Weak Liquidity |
| ROA | 0.88% | -1505887.00% (disorted) | Weak |
STLTECH.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sterlite Technologies Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-37.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-123.42%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-58.71%
Industry Style: Cyclical, Value, Infrastructure
Declining