Sterlite Technologies shares gain as Crisil Equity assigns fundamental grade of '3/5'

Shares of Sterlite Technologies gained around 2 per cent on Thursday after the credit rating agency, Crisil Equity assigned the fundamental grade of '3/5' to the company. The grade indicates that the firm's fundamentals are good relative to other listed equity securities in India.

The credit rating agency has also assigned a valuation grade of '5/5' indicating that market price has strong upside from the current levels.

The share price of the company closed 1.86 per cent higher at Rs 71.30.

Crisil Equity in a research report said, "We have used the sum-of-the-parts (SoTP) method to value Sterlite Technologies. After the announcement of the demerger, we have valued the telecom and power businesses separately and revised the fair value to Rs 89 from Rs 86 per share."

For the quarter ended March 2015, the company posted net profit of Rs 39.13 crore, up 285.52 per cent, against Rs 10.15 crore in the corresponding quarter a year ago.

According to BSE, the promoters holding in the company stood at 54.82 per cent while institutions and non-institutions held 12.25 per cent and 32.93 per cent, respectively.