Sterlite Technologies rose 5% after Nomura initiated coverage with a target price of 1350, citing an optic fiber super cycle driven by data centers

Tue 6 Oct 2026

Stock move today

5 percent

Stock gain over past year

800 percent

Nomura target price

1350 rupees

Data center revenue share by FY29

40 percent

Fiber price increase

90 percent

Heard on business television between 11:05:54 - 11:08:54 IST.

• Nomura initiated coverage on STL with a target price of 1350 rupees, implying significant upside; stock already up 800-850% over the past year.
• Nomura expects STL's data center-related revenue contribution to rise to 40% by FY29 from negligible levels, amid a 90% rise in data center fiber prices and supply shortage.
• STL plans to spend 3,000 crore rupees to raise capacity by 50%; it makes its own glass preform, which is scarce and accounts for 60-70% of fiber manufacturing value, unlike competitors reliant on purchased preform.
• Company's balance sheet has improved after raising 1,500 crore rupees via QIP.
• Nomura forecasts 50% revenue CAGR, 89% EBITDA CAGR, revenue of 16,000 crore rupees by FY29, margins rising to 24%, and profit jumping 57x from about 44 crore rupees in FY26 to 2,500 crore rupees; valued at 30 times FY28 December PE minus 19 rupees for lawsuit cost provisioning, a 20% discount to Polycab and KEI (36-38x) and in line with global peers like Corning, Fujikura and YOFC.

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