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Nomura Predicts 35 Percent Upside for Sterlite Technologies After Massive Rally
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CNBC TV18•06-10-2026, 09:41
Nomura Predicts 35 Percent Upside for Sterlite Technologies After Massive Rally
- •Nomura initiated coverage on Sterlite Technologies with a Buy rating and set a price target of 1,350 rupees per share, suggesting a 35 percent upside from its previous close.
- •The brokerage forecasts a 14 percent compound annual growth rate in optical fibre cable demand across North America and Europe between 2025 and 2030.
- •Nomura estimates the company's revenue and EBITDA will grow at CAGRs of 50 percent and 89 percent respectively from fiscal year 2026 to 2029.
- •Sterlite Technologies' integrated manufacturing model positions it well to capture market share amid industry-wide supply bottlenecks.
- •Key risks highlighted by the brokerage include potential slowdowns in artificial intelligence data centre capital expenditure and weaker-than-expected order execution.
Key Questions Answered
Global brokerage firm Nomura initiated coverage on Sterlite Technologies with a 'Buy' rating and set a price target of ₹1,350 per share, which implies a potential upside of approximately 35% from its previous close of ₹1,003.10.
Nomura forecasts a 14% compound annual growth rate in optical fibre cable demand across key North American and European markets over the CY25–30E period.
Nomura highlighted potential risks including a slowdown in artificial intelligence data centre capital expenditure, faster-than-expected commissioning of industry capacity, weaker-than-expected order intake and execution, and cash outflows tied to legal claims.
