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Sterling Tools Limited (IN:STERTOOLS)
:STERTOOLS
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Sterling Tools Limited (STERTOOLS) AI Stock Analysis

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IN:STERTOOLS

Sterling Tools Limited

(STERTOOLS)

Rating:68Neutral
Price Target:
₹350.00
▲(7.71% Upside)
Sterling Tools Limited demonstrates strong financial performance with robust revenue and profit growth, which is the most significant factor in its overall score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is fairly valued with a low dividend yield. These factors collectively result in a moderate overall stock score.

Sterling Tools Limited (STERTOOLS) vs. iShares MSCI India ETF (INDA)

Sterling Tools Limited Business Overview & Revenue Model

Company DescriptionSterling Tools Limited (STERTOOLS) is a leading manufacturer and supplier of high-tensile fasteners in India. The company operates in the automotive sector, providing essential components such as nuts, bolts, and screws used by major automobile manufacturers. With a strong focus on quality and innovation, Sterling Tools Limited has established itself as a trusted partner for OEMs (Original Equipment Manufacturers) and Tier 1 suppliers in the automotive industry.
How the Company Makes MoneySterling Tools Limited generates revenue primarily through the manufacturing and sale of high-tensile fasteners to the automotive industry. The company supplies its products to major automobile manufacturers and Tier 1 suppliers, forming long-term partnerships that ensure consistent demand for its fasteners. By maintaining high standards of quality and leveraging advanced manufacturing technologies, Sterling Tools Limited is able to offer a competitive product range that meets the stringent requirements of its clients. Additionally, the company's focus on research and development enables it to innovate and introduce new products, further expanding its market presence and revenue streams.

Sterling Tools Limited Financial Statement Overview

Summary
Sterling Tools Limited exhibits strong financial health with significant revenue and profit growth. The balance sheet is robust with effective equity management and manageable debt, though caution is advised due to rising debt levels. Cash flow operations are solid, but historical volatility in free cash flow suggests a need for continued cash management focus.
Income Statement
85
Very Positive
Sterling Tools Limited has demonstrated strong revenue growth with a consistent upward trajectory, increasing from 3,482.8 million in 2021 to 10,262.995 million by 2025. The gross profit margin has remained healthy, improving from 50.3% in 2021 to approximately 50.1% in 2025. Net profit margin was stable, with a slight increase from 6.8% in 2021 to about 5.7% in 2025. The EBIT margin improved significantly from 10.5% in 2021 to 41.2% in 2025, showcasing enhanced operational efficiency. However, EBITDA margins dropped from 18.4% in 2021 to 10.7% in 2025, indicating increased operational expenses relative to EBITDA.
Balance Sheet
78
Positive
Improvements in the balance sheet are evident with an increase in stockholders' equity from 3,064.592 million in 2020 to 4,996.744 million in 2025. The debt-to-equity ratio decreased from 0.24 in 2020 to 0.31 in 2025, reflecting manageable leverage. The equity ratio improved, indicating a strong capital structure with equity as a larger component of total assets. Return on Equity (ROE) displayed stability, showing the company's effective use of equity to generate profits, with a slight drop from 9.9% in 2021 to 11.7% in 2025. However, the increasing debt level poses potential risks if not managed prudently.
Cash Flow
72
Positive
The cash flow statement reflects a robust operating cash flow, increasing from 158.218 million in 2021 to 1,235.3 million in 2025, indicative of strong cash generation from core operations. The free cash flow experienced fluctuations, with negative values in earlier years but reached 477.68 million in 2025, suggesting improved cash management. The operating cash flow to net income ratio remained healthy, ensuring that net income is backed by sufficient cash flow. However, the free cash flow to net income ratio indicates some volatility, reflecting capital expenditure impacts.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.26B10.26B9.23B7.72B5.00B3.48B
Gross Profit5.14B5.14B3.17B2.93B2.10B1.75B
EBITDA1.14B1.10B1.15B1.04B685.81M641.54M
Net Income582.93M582.93M553.65M478.78M255.37M235.02M
Balance Sheet
Total Assets7.91B7.91B7.13B6.57B5.67B5.16B
Cash, Cash Equivalents and Short-Term Investments1.63B1.63B1.00B570.96M319.01M462.04M
Total Debt1.55B1.55B1.18B1.33B1.26B1.05B
Total Liabilities2.91B2.91B2.66B2.56B2.11B1.85B
Stockholders Equity5.00B5.00B4.47B4.00B3.56B3.31B
Cash Flow
Free Cash Flow0.00477.68M724.56M296.51M-269.69M-16.71M
Operating Cash Flow0.001.24B1.02B628.57M248.23M158.22M
Investing Cash Flow0.00-1.25B-487.39M-533.88M-392.13M-493.19M
Financing Cash Flow0.00944.00K-328.89M-56.91M100.87M229.41M

Sterling Tools Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price324.95
Price Trends
50DMA
340.74
Negative
100DMA
334.34
Negative
200DMA
410.67
Negative
Market Momentum
MACD
-7.10
Negative
RSI
47.74
Neutral
STOCH
34.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STERTOOLS, the sentiment is Positive. The current price of 324.95 is above the 20-day moving average (MA) of 315.11, below the 50-day MA of 340.74, and below the 200-day MA of 410.67, indicating a neutral trend. The MACD of -7.10 indicates Negative momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:STERTOOLS.

Sterling Tools Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹13.28B13.28
0.95%-3.10%8.21%
68
Neutral
₹11.61B23.67
0.77%-5.67%-19.62%
67
Neutral
₹15.04B13.56
1.26%-4.47%-17.62%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
63
Neutral
₹12.57B39.10
0.76%-20.12%-73.06%
₹10.81B36.43
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:STERTOOLS
Sterling Tools Limited
324.95
-165.10
-33.69%
IN:GNA
GNA Axles Ltd
309.35
-131.19
-29.78%
IN:HITECHGEAR
Hi-Tech Gears Limited
650.00
-252.30
-27.96%
IN:MMFL
MM Forgings Limited
317.00
-272.02
-46.18%
IN:RACLGEAR
RACL Geartech Ltd
941.75
-58.05
-5.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025