Rs 11,000 crore order book & 50 per cent dividend declared: Multibagger telecom manufacturing company receives Rs 250 crore order; share jumps 8 per cent!
The stock is up by 30 per cent in 3 years and gave multibagger returns of over 1,000 per cent in 1 decade.
On Monday, one of the Top Gainers on BSE, shares of Sterlite Technologies Ltd surged 8 per cent to an intraday high of Rs 163.95 per share from its previous closing of Rs 151.80. At the closing bell, shares of the company were trading at Rs 158.50 per share, up 4.41 per cent with a spurt in volume by more than 4.26 times on BSE.
Order Update: The company partners with a public sector entity. In this multi-year agreement, STL will design, build, commission, and maintain 2 data centre facilities, with service deployment across multiple network sites across India. The deal is worth Rs 250 crore. STL will oversee the operational management of the project for 3 years, ensuring its reliable functioning. This mission-critical endeavour demands 24/7 availability, seamless operations, and intelligent systems for data centre connectivity and security, enabling advanced applications.
Order book: As of June 30, 2023, the company’s order book stood at Rs 10,938 crore which is spread across its three business units- Optical Networking, Global Services, and Digital. The company's order book now exceeds Rs 11,000, including the most recent order whereas the company's current market cap is Rs 6,319 crore.
Dividend Update: The board of directors of the company announced a final dividend of 50 per cent, which is equivalent to Rs 1 per equity share. The face value of each share is Rs 2, so shareholders will receive a dividend of 50 per cent of the face value. The company fixed the record date as tomorrow, August 08, 2023.
Quarterly Results: The net sales increased by 2.35 per cent to Rs 1,522 crore and net profit skyrocketed by 316.67 per cent to Rs 52 crore in Q1FY24 compared to Q1FY23. The company has been maintaining a healthy dividend payout of 30.20 per cent
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About the company: STL, created via a spin-off of the telecom business of Sterlite Industries, provides optical fiber, cable and jelly-filled telecom cable products. The stock is up by 30 per cent in 3 years and gave multibagger returns of over 1,000 per cent in 1 decade. Investors should keep an eye on this telecom stock.
Disclaimer: The article is for informational purposes only and not investment advice.