Sterlite Technologies Intrinsic Value

STLTECH • Telecom
Current Stock Price
₹176.36
Primary Intrinsic Value
₹52.91
Market Cap
₹1728 Cr
+15.1% Upside
Median Value
₹203.06
Value Range
₹53 - ₹345
Assessment
Trading Below Median Value
Safety Margin
13.1%

STLTECH Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹52.91 ₹42.33 - ₹63.49 -70.0% EPS: ₹0.32, Sector P/E: 12x
Book Value Method asset ₹203.06 ₹182.75 - ₹223.37 +15.1% Book Value/Share: ₹203.06, P/B: 1.0x
Revenue Multiple Method revenue ₹341.55 ₹307.40 - ₹375.71 +93.7% Revenue/Share: ₹426.94, P/S: 0.8x
EBITDA Multiple Method earnings ₹345.31 ₹310.78 - ₹379.84 +95.8% EBITDA: ₹564.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹329.67 ₹263.74 - ₹395.60 +86.9% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹52.91 ₹47.62 - ₹58.20 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹52.91 ₹47.62 - ₹58.20 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹52.91 ₹47.62 - ₹58.20 -70.0% EPS: ₹0.32, BVPS: ₹203.06
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

STLTECH Intrinsic Value Analysis

What is the intrinsic value of STLTECH?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Sterlite Technologies (STLTECH) is ₹203.06 (median value). With the current market price of ₹176.36, this represents a +15.1% variance from our estimated fair value.

The valuation range spans from ₹52.91 to ₹345.31, indicating ₹52.91 - ₹345.31.

Is STLTECH undervalued or overvalued?

Based on our multi-method analysis, Sterlite Technologies (STLTECH) appears to be trading below median value by approximately 15.1%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.22 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 0.8% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 12.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.76x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹348 Cr ₹201 Cr Positive Free Cash Flow 8/10
March 2024 ₹791 Cr ₹686 Cr Positive Free Cash Flow 8/10
March 2023 ₹228 Cr ₹200 Cr Positive Free Cash Flow 8/10
March 2022 ₹584 Cr ₹344 Cr Positive Free Cash Flow 8/10
March 2021 ₹639 Cr ₹332 Cr Positive Free Cash Flow 8/10