Nomura has launched a fresh coverage on Sterlite Technologies (STLR) with a Buy rating and a ₹1,350 price target, translating to a 35% upside from the current ₹1,003.10 closing price on NSE and BSE.
The brokerage projects revenue growth at a 50% CAGR and EBITDA expansion at an eye‑popping 89% CAGR from FY26 to FY29, according to Nomura’s research notes.
Optical fibre cable demand is set to surge 14% CAGR in North America and Europe over CY25–30E, driven by constrained glass preform capacity and raw‑material bottlenecks, the analysts said.
Sterlite’s integrated manufacturing model has already secured major hyperscaler contracts, giving it a 9% share of the global ex‑China OFC market in Q1FY27 and positioning it to lift its data‑centre market share into the high single digits, a move that could outpace non‑integrated peers.
Share price closed 5% higher at ₹1,003.10 on Monday, marking an 865% YTD gain, while Nomura cautions against risks such as AI data‑centre CAPEX slowdown, rapid capacity commissioning, weaker order intake, and legal cash outflows.
Sterlite’s FY27 earnings are expected in the coming weeks, after which analysts will reassess the target.