Mumbai: Shares of Sterlite Technologies jumped 15 per cent on Monday after CLSA initiated coverage on the stock with a buy rating and as Prime Minister Narendra Modi promised that every village in India will get optical fibre internet in the next 1,000 days.

The stock ended up 15 per cent at Rs 149.70. Other cable stocks such as Finolex Cables, Polycab India and ITI, too, gained 1.6-2.8 per cent.

CLSA said Sterlite Technologies has rapidly transitioned from manufacturing to digital networks services.

The foreign brokerage said Sterlite’s revenues doubled over financial year 2016-17 and financial year 2019-2020 to 5,150 crore and delivered around 20 per cent return on capital employed.

The company has a strong order book of Rs 10,300 crore and has participated in invitations for bids of Rs 10,100 crore, said CLSA. The brokerage cited compelling growth and valuations as the factors behind initiating coverage on the stock with a target price of Rs 185. “TL is a Covid-19 beneficiary and management targets to double FY20 revenues by FY23,” it said.