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Unlisted Shares

Sterlite Power Transmission Essentials

As of July 13, 2024, Sterlite Power Transmission, Unlisted Shares are trading at ₹710.00 per share, with a 52-week high of ₹740 and 52-week low of ₹510. The minimun lot size is 385 shares, and the shares are traded on NSDL and CDSL.

ISIN

INE110V01015

Face Value

₹ 2

Total Share

12,23,60,000

Total Income

₹ 6,313.95 undefined

Profit After Tax

₹ ****

EPS

₹ ****

P/B

****

Market Capitalisation

₹ 8,687.56 Cr

Enterprise Value

₹ ****

Book Value

₹ 131.09

Intrinsic Value

₹ ****

Dividend Yield

0.14 %

Earnings Yield

-0.38 %

Sector

Utilities

Sub-sector

Power Transmission & Distribution

Category

Upcoming IPO

Cashflow - Operations

-₹ 1,642.36

Cashflow - Financing

1,564.44

Sterlite Power Transmission Growth

Compounded Sales Growth

1 Year

3 Year

7 Year

Return On Equity

2017

2020

2023

Highlights

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Growth:

  • Overall Revenue: 20% YoY growth, driven by:
    • Power Product & Solutions: 3% YoY growth (62% revenue share)
    • Power Transmission Grid: 73% YoY surge (40% revenue share) - due to:
      • Increased order book, especially abroad (Brazil)
      • New transmission projects
  • International Strength: 47% YoY growth in revenue from outside India (56% revenue share)
  • Other Services: Strong growth in consultancy and other services (1% of net sales)
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Profitability:

  • Gross Margins: Up due to stronger pricing in EHV & OPGW segment (Solutions) driven by renewable energy demand.
  • EPC (Transmission): Growth due to increased concession projects in Brazil and India, but declining segment margins dragged down consolidated bottom line.
  • Standalone Performance: Strong 30% YoY growth with NPM of 8% for FY23.
  • EPC Margin Decline: Caused by:
    • Long gestation periods (up to 2 years) for new projects.
    • High upfront costs for acquisitions and setup.
  • Consolidated Bottom Line: Negatively impacted by:
    • Net losses from subsidiaries & JVs in concession projects.
    • Solaris, Borborema, and Sterlite Grid 13 JV had the biggest negative impact.
  • Financial Ratios:
    • ROE and ROA declined due to falling bottom line.
    • ROCE showed remarkable growth from 12% to 18% YoY.
  • Future Outlook:
    • Profitability expected to improve as new transmission projects come online.
    • Power solutions segment also likely to benefit from improved profitability.
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Upcoming:

  • Green Energy Corridor: Building a 20 GW capacity corridor for renewable energy transmission.
  • Fatehgarh III Beawar Project: Secured Part G Phase III, contributing to a major Green Energy Corridor upon completion.
  • High Margins and Long-Term Agreements: EPC segment boasts historically high margins (~20%) and secure 25-30 year agreements (BOOM/BOOT).
  • Demerger for Value Creation: SGL5 established as a separate entity with $300 million investment from GIC (Singapore) joint venture (51:49).
  • Strategic Benefits:
    • Expected wealth creation for the company.
    • Contributes to EPS growth.
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Investment Thesis: A Potentially Undervalued Gem in the Power Sector

SPTL Standalone PE is 20. The stock is trading significantly below industry averages (capital goods PE: 45, power transmission PE: 15), thus presenting a compelling investment opportunity backed by:

  • Strong Fundamentals: Leader in conductors, growing HV/EHV cable portfolio, and presence in promising optical fiber space.
  • Tailwind-Powered Growth:
    • Renewable Energy Surge: Boosts demand for SPTL's conductors and cables.
    • Transmission Expansion: Outpacing power generation, creating further demand.
    • Strategic Demerger: Unlocks value for core Product and service segments.
    • Ambitious Expansion: Doubling conductor capacity, entering overseas markets.
  • Management Growth Forecasts:
    • Products Business: 49.1% CAGR revenue growth (FY23-FY26E) with 60bps EBITDA margin improvement.
    • Specialized EPC Services Business: 27.5% CAGR revenue growth (FY23-FY26E) with 310bps EBITDA margin improvement.
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Key Person:  A VEDANTA Group powerhouse, Sterlite Power reigns supreme as a private power transmission player. With 32 completed and ongoing projects spanning 15,350+ circuit km in India and Brazil, they boast a robust portfolio and expertise in infrastructure development, conductors, cables, and fiber solutions. Spearheading the green energy push, Sterlite Power is the first to launch an InvIT in the sector and has bagged coveted titles like "Power Transmission Company of the Year" and international awards from S&P Platts and IPMA. They're a true game-changer in the sector.

Business Rating

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Managment

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Accounting Practice

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Profatibility

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Solvency

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Growth

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Valuation

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Overall Ratings

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Recommendation

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Our Team

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MR. MANISH AGARWAL

( Whole Time Director and CEO (Global Products and Services) )

Mr. Manish Agarwal is a power infrastructure specialist with a career spanning 26 years. A veteran in Power and Telecom, he is a leading voice shaping policy priorities in the infrastructure & manufacturing sector. He is a passionate proponent of disruptive technologies and played a pivotal role in their adoption in transmission sector. He is also a well-regarded champion of key industry matters including concession/ Public-Private Partnership, uprate/upgrades of infrastructure, fiberisation of underground and overhead power delivery systems. He also invests his time in forging technology alliances, global partnerships, and commercialisation of new advanced technologies and solutions. As CEO (Global Products and services) & Group Director, (Corporate Affairs, Business Acquisition and Regulatory), he steers the global products, services, and convergence businesses. He is the co-chair for Power Council at Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Vice President of CIGRE India (International Council on Large Electric Systems), a global community for the collaborative development of power system expertise. He is member of Power Committee of FICCI. He is a Harvard alumnus and has also pursued Leadership Programmes from Indian Institute of Management, Ahmedabad and Indian School of Business, Hyderabad. He holds a degree in Engineering and an MBA from Federation University, Australia

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Mr. Anoop Seth

( Independent Director )

Mr. Anoop Seth is an MMS from BITS Pilani with a major in Finance and Executive International Management Programme from INSEAD, France. Mr. Seth, has an illustrious career spanning 36 years, in financial services and several infrastructure sectors. He has held leadership positions in companies such as AMP Capital, Bank of America, Bechtel Corp, IDFC, Reliance Industries, Standard Chartered Bank, and IL&FS Energy. With an extensive experience, he advices the Board and leadership team on matters related to strategy and growth

Quantity

Invest

, Min. Investment: ₹