Nomura initiates coverage on this optical cable play: Datacentre capex to fuel 35% rally?
The optical fibre cable (OFC) industry is at a multi-year super cycle, driven by strong datacentre capital expenditure tailwinds, and one company, Sterlite Technologies, is in the middle of it all. The company is well poised to benefit from the robust OFC demand due to its integrated capacity.
Global brokerage Nomura has initiated coverage on the stock with a ‘Buy’ rating and has set a target price of Rs 1,350 apiece. This implies a nearly 35% upside from the stock’s closing price on Monday at Rs 1,001.25 apiece. Nomura has valued Sterlite Tech at 30 times December 2028 earnings per share.
