Shares of STL Networks, and its and its erstwhile parent, Sterlite Technologies rallied nearly 5% to touch upper circuit on Wednesday, September 30. The sharp rally in the two telecom sector stocks came amid investors optimism around recent order wins. STL Networks emerged as the lowest bidder for a contract from Railtel Corporation of India.
Hyperscaler orders, record earnings and aggressive targets for the coming years are likely driving bullish sentiment around Sterlite Technologies Limited. The stock has delivered close to 415% return in six months.
Why is STL Networks share price rising today?
The fresh rally in STL Networks stock came, a day after the company announced that it emerged as the lowest bidder from RailTel Corporation of India Limited for a 249 crore order.
As per the order, the company will be responsible for the design, supply, installation, testing, commissioning, configuration, integration, migration and deployment of cloud infrastructure solution at RailTel data centre and disaster recovery site.
“STL Networks emerged as the lowest bidder for a large government contract, one that is bigger than the revenue it normally earns in a whole quarter. The order came from RailTel, the Railways’ telecomPSU and the work order is worth Rs.249.8 Cr. which is about 142% of the company’s Q1 FY27 revenue of Rs.176.15 Cr,” stated Balaji Rao Mudili, Research Analyst at Bonanza.
What’s fuelling Sterlite Technologies stock rally?
The Sterlite Tech rally is driven mostly by investors’ optimism around the company’s hyperscalr orders, record earnings, an aggressive FY29 growth target and strong momentum that has kept the stock hitting its daily ceiling, highlighted, Balaji Rao Mudili.
Sterlite Technology share price outlook
Sterlite Tech stock was trading 5.08% higher at ₹908.90 apiece on BSE with an MCap of ₹46,722.68 crore at 12:30 pm. The stock has delivered 415% return in six months, 702% return in one year, and 865% return in two years.
The telecom stock is sustaining positive momentum after hitting back-to-back upper circuits.
Sterlite Tech stock showcasing strong upside with “higher-high formation and trading comfortably above key EMAs. Price is consolidating near recent highs, while RSI remains supportive. Sustaining above the 900–910 zone can support further upside, with volume confirmation strengthening the trend,” explained Virat Jagad Sr. Technical Research Analyst at Bonanza.
What lies ahead for STL Networks?
STL Networks share price was up 4.58% at ₹51.82 per share on BSE with an Mcap of ₹2,529.38 crore at 12:30 pm. The stock had surged to upper circuit of ₹51.85 per share earlier in the trading session. Its share price value has surged nearly 74% in one year.
“Price is trading well above key EMAs with strong volume support, while RSI remains in the bullish zone. After the recent sharp rise, some consolidation or profit booking may occur, but the broader trend remains positive,” stated Virat Jagad.
