Sterlite Tech shares: 95% upside? CLSA, Nomura, 2 others set targets on multibagger stock

At least four brokerages have set price targets implying up to 95 per cent upside for multibagger Sterlite Technologies Ltd, citing its hyperscaler order book, which they believe has rewritten the company's growth trajectory following its September quarter results.

The bullish targets come even as Sterlite Tech shares have surged 585 per cent over the past year. CLSA analyst Saurabh Mehrotra maintained an 'Accumulate' rating on the stock and raised the target price to Rs 1,610 from Rs 1,400 earlier. Nomura maintained its 'Buy' rating and target price of Rs 1,350, while Nuvama Institutional Equities reiterated its 'Buy' rating and raised the target to Rs 1,460 from Rs 1,310 earlier.

Analysts said that while broader industry commentary flags a potential medium-term moderation in data centre spending, Sterlite Tech is poised to pull forward growth through accelerated order book execution. Its order visibility remained strong, with H1FY27 order intake of Rs 32,030 crore and a record order book of Rs 35,270 crore, including a five-year hyperscaler agreement worth Rs 11,500 crore.

"The management expects Data Centre & Cloud to contribute 50 per cent of FY27 revenue, reflecting strong AI-led demand, while connectivity attach rates are targeted to increase beyond 25 per cent from 24 per cent in H1FY27. The company is expanding capacity by 50 per cent and plans to invest Rs 1,000 crore annually over FY27-FY29, including a new pre-terminated solutions facility," Nirmal Bang Institutional Equities said.

The brokerage noted that Sterlite Tech has also commercialised G.654.E fibre and initiated pilots for hollow-core fibre, supporting its focus on advanced connectivity solutions.

The management also raised its FY29 Ebitda margin target to above 30 per cent while retaining its Rs 20,000 crore revenue target. Nirmal Bang maintained its 'Buy' rating with a target price of Rs 1,544.

"STL has expanded its data centre portfolio with high-density pre-terminated trunk assemblies and pre-plenum-rated solutions for in-data-hall connectivity. Hollow-core fibre has entered its initial commercial pilot phase, while multi-core fibre progressed to real-world trials, including successful trials in the UK, strengthening STL’s positioning in higher-value optical connectivity," Nuvama Institutional Equities said.