Sterlite Technologies share price reached 11 percent on Monday immediately after Prime Minister Narendra Modi promised optical fiber internet for every Indian village in the coming 1,000 days.

The stock touched the 11 percent mark of Rs.144.40 on the NSE, but the shares pared some gains, while trading 7.56 percent higher at Rs.140.10 at 11:50 am.

PM Modi, during the Independence speech, said, "In the last five years, 1.5 lakh gram panchayats in the country have been connected with optical fiber cables. Before 2014, only 5 dozen panchayats in the country were connected with optical fiber. Now, our aim is to connect every village with high-speed internet. This goal will be met in the coming thousand days. In the coming 1,000 days, every village in the country will be connected with optical fiber."

Anand Agarwal, the company’s Group CEO, in a media interview, said, “By FY23, Sterlite's revenue will double up to over Rs.10,000 crore. In fact, we are strengthening its technology for the 5G ecosystem and will focus on wireless connectivity.”

In its recent research note, CLSA said that its target price on the stock touched Rs.185 from the existing present market price of Rs.130.0. It stated, "In India, currently only an estimated 30 percent of towers are connected with fiber v/s 70-80 percent for developed countries."

Scaling up from 20kms fiber to 50kms fiber, Sterlite increased the capacities and also the capacity of the cable from 8m to 18m. Sterlite transformed from manufacturing to digital network services, where the order book is strong at around Rs.10,000 crore, as per the report.

Sterlite Technologies, in its Q1FY21 earning, reported a 96 percent plunge in consolidated net profit to Rs.5.96 crore in the first quarter of 2020, which ended on June 30. In the previous year, the net profit mark was at Rs.143 crore.

In its earning filing, Sterlite said, “Production and delivery were hurt due to logistics challenges. Optical fiber contracted by 9 percent in the first half of 2020, but is expected to grow by 6 percent in the second half of the year.”