This telecom stock was trending today!

The stock surged more than 5% on Friday.

On December 15, the market closed trading in the red. The S&P BSE Sensex closed at 61337.81 down 0.75%, while NIFTY50 closed at 18,269, down 0.79%. Regarding sectoral performance, FMCG and Telecom were among the outperformers, while Realty was the top loser. Talking about stock-specific action, Sterlite Technologies Ltd is among the top gainers in BSE group ‘A’.

Talking about a stock-specific action, Sterlite Technologies Ltd was the top gainer among S&P BSE group ‘A’ companies. The company was in news regarding acquiring an additional 25% stake in Jiangsu Sterlite Fiber Technology Co. Ltd (JSFTCL). Now, Sterlite owns 100% of JSFTCL.

The shares of Sterlite Technologies surged 5.5% and closed at Rs 187.05. The stock opened at Rs 179.65 and made an intraday high and low of Rs 190.4 and Rs 174.55, respectively.

Sterlite Technologies Ltd is engaged in designing, building and managing telecom broadband networks. It has manufacturing plants in Aurangabad, Silvassa, China, and Brazil.

Its offering includes optical products, system, and network integration services as well as telecom software. In the service business, Sterlite is developing several network projects such as a secure network for the armed forces, rural broadband through BharatNet, smart cities, and high-speed fibre-to-the-home (FTTH). As per the September quarter, about 70% of revenue came from the optical and 30% from the service business.

 Strong investment momentum is continuing across 5G, fibre-to-the-home, ready fibre-to-the-x, data centres as well as citizen networks are positives for the company. 5G is becoming clearly the fastest-growing technology in the world today. Operators are expected to invest more than $500 billion in 5G between 2022 and 2025. The open order book at the end of quarter 2 FY23 is about Rs 11,697 crore.

About the shareholding pattern, 54.11% is owned by the promoters, 7.91% by FIIs, 3.76% by DIIs, and the rest 34.22% by non-institutional investors.