Sterling Tools Limited (STERTOOLS) AI Stock Analysis

• Market Cap: ₹11.07B
• Dividend Yield: 0.87%
• Average Volume (3M): 8.83K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.65
• Revenue Growth: -5.67%
• EPS Growth: -19.62%
• Country: IN
• Employees: 613
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.48
• Shares Outstanding: 36,184,320
• 10 Day Avg. Volume: 9,282
• 30 Day Avg. Volume: 8,827
• PEG Ratio: 3.85
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 24.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹350.00 ▲(22.08% Upside)

Sterling Tools Limited demonstrates strong financial performance with robust revenue and profit growth, supported by solid cash flow operations. The technical analysis indicates a neutral momentum, while the valuation suggests moderate pricing with a modest dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Sterling Tools Limited Business Overview & Revenue Model

Company Description

Sterling Tools Limited (STERTOOLS) is a leading manufacturer and supplier of high-quality hand tools and industrial fasteners, primarily serving the automotive, construction, and manufacturing sectors. The company specializes in a diverse range of products, including wrenches, screwdrivers, pliers, and specialty fasteners, which are designed to meet rigorous industry standards and customer specifications. STERTOOLS is committed to innovation and quality, ensuring that its products enhance efficiency and safety in various applications.

How the Company Makes Money

STERTOOLS generates revenue through several key streams, including direct sales of its tools and fasteners to industrial clients, retailers, and distributors. The company also engages in online sales through its e-commerce platform, expanding its reach to a broader customer base. Additionally, STERTOOLS has established strategic partnerships with major retailers and wholesalers, enabling bulk sales and increasing market penetration. The company may also earn revenue from value-added services, such as custom tool manufacturing and repair services, which cater to specific customer needs. Overall, its focus on maintaining high-quality standards and customer satisfaction contributes significantly to its earnings.

Sterling Tools Limited Financial Statement Overview

Summary

Sterling Tools Limited shows strong financial health with significant revenue and profit growth. The balance sheet is robust with effective equity management and manageable debt, though rising debt levels require caution. Cash flow operations are solid, supporting net income effectively, despite historical volatility in free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.37B	10.26B	9.32B	7.72B	5.07B	3.52B
Gross Profit	4.94B	5.14B	3.17B	1.15B	2.10B	1.75B
EBITDA	1.05B	1.10B	1.15B	1.04B	685.81M	641.54M
Net Income	488.74M	582.93M	553.65M	478.78M	255.37M	235.02M
Balance Sheet
Total Assets	0.00	7.91B	7.13B	6.57B	5.67B	5.16B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.63B	1.00B	570.96M	319.01M	448.59M
Total Debt	0.00	1.55B	1.18B	1.33B	1.26B	1.05B
Total Liabilities	-5.00B	2.91B	2.66B	2.56B	2.11B	1.85B
Stockholders Equity	5.00B	5.00B	4.47B	4.00B	3.56B	3.31B
Cash Flow
Free Cash Flow	0.00	477.68M	724.56M	296.51M	-269.69M	-16.71M
Operating Cash Flow	0.00	1.24B	1.02B	628.57M	248.23M	158.22M
Investing Cash Flow	0.00	-1.25B	-487.39M	-533.88M	-392.13M	-493.19M
Financing Cash Flow	0.00	944.00K	-328.89M	-56.91M	100.87M	229.41M

Sterling Tools Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 286.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STERTOOLS, the sentiment is Negative. The current price of 286.7 is below the 20-day moving average (MA) of 311.74, below the 50-day MA of 318.50, and below the 200-day MA of 344.11, indicating a bearish trend. The MACD of -5.65 indicates Positive momentum. The RSI at 26.85 is Positive, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STERTOOLS.

Sterling Tools Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	76 Outperform	₹13.75B	13.10	―	0.95%	-4.65%	9.95%
STERTOOLS	72 Outperform	₹11.07B	22.59	―	0.87%	-5.67%	-19.62%
MMFL	68 Neutral	₹14.93B	13.46	―	1.33%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HITECHGEAR	60 Neutral	₹14.53B	45.18	―	0.67%	-20.12%	-73.06%

Sterling Tools Limited Corporate Events

Sterling Tools Rebrands Subsidiary to Strengthen EV Market Presence

Sterling Tools Limited has announced the rebranding of its subsidiary, Sterling Gtake, to Sterling E-Mobility Solutions Limited, marking a significant step in its mission to become a comprehensive provider of electric vehicle (EV) technologies. This strategic move highlights the company’s dedication to delivering integrated EV solutions and its vision to lead India’s transition to sustainable mobility. The rebranding is part of Sterling’s broader strategy to offer localized, high-performance solutions tailored to the Indian EV market, supported by partnerships with global leaders like Advanced Electric Machines and Landworld Technology. The company maintains a strong relationship with Jiangsu Gtake Electric Co., Ltd., ensuring continued development and localization of products for the domestic market.

Sterling Tools Limited Completes Dispatch for 46th AGM

Sterling Tools Limited has announced the completion of the dispatch of the notice for its 46th Annual General Meeting (AGM), along with information on the e-voting process and book closure. This announcement is significant as it ensures that stakeholders are informed about the AGM proceedings, which is crucial for maintaining transparency and compliance with regulatory requirements. The completion of these dispatches highlights the company’s commitment to adhering to SEBI regulations and keeping its shareholders engaged and informed.

Sterling Tools Limited Announces Virtual AGM for 2025

Sterling Tools Limited has announced its 46th Annual General Meeting (AGM) scheduled for September 25, 2025, to be held virtually via video conferencing. This move aligns with regulatory compliance and aims to ensure shareholder participation without physical presence, reflecting the company’s adaptation to modern communication methods and commitment to transparency.