Sterling Tools Limited (IN:STERTOOLS)
:STERTOOLS
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Sterling Tools Limited
(STERTOOLS)
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Rating:56Neutral
Price Target:
₹210.00
▼(-22.59% Downside)
Action:Reiterated
Date:05/22/26
The score is held back primarily by FY2026 weakening in revenue, margins, and especially free cash flow consistency, despite a stable balance sheet. Technicals are mixed with neutral momentum and the price still below the 200DMA. Valuation and dividend provide some support but are not strong enough to offset the recent operating and cash-flow softness.
Positive Factors
Controlled leverage / balance-sheet stability
Sustained low debt-to-equity and rising equity provide structural financial flexibility. This balance-sheet strength supports capital spending for tooling, cushions cyclic auto demand, and preserves the company’s ability to meet OEM supply commitments without urgent external financing.
Negative Factors
Volatile and weakening free cash flow
A large FCF decline and historically volatile cash conversion undermine durable funding for capex, working-capital needs, dividends or deleveraging. With FCF now a fraction of net income, capital-allocation flexibility is constrained and downside risk rises during industry slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Controlled leverage / balance-sheet stability
Sustained low debt-to-equity and rising equity provide structural financial flexibility. This balance-sheet strength supports capital spending for tooling, cushions cyclic auto demand, and preserves the company’s ability to meet OEM supply commitments without urgent external financing.
Read all positive factors
Sterling Tools Limited (STERTOOLS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.42B
Dividend Yield0.87%
Average Volume (3M)8.83K
Price to Earnings (P/E)25.8
Beta (1Y)2.11
Revenue Growth-19.34%
EPS Growth-49.87%
CountryIN
Employees613
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)13.45
Shares Outstanding36,344,425
10 Day Avg. Volume9,282
30 Day Avg. Volume8,827
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)1.11
Price to Sales (P/S)0.70
P/FCF Ratio65.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)33.3
Revenue Forecast (FY)₹13.48B
Sterling Tools Limited Business Overview & Revenue Model
Company Description
Sterling Tools Limited is a key player in the manufacturing and distribution of high-tensile, cold-forged fasteners, primarily supplying original equipment manufacturers (OEMs) throughout India. The company offers an extensive range of fasteners, ...
How the Company Makes Money
Sterling Tools Limited primarily makes money by manufacturing and selling automotive fasteners and engineered components to customers such as vehicle OEMs and automotive tier suppliers. Revenue is generated through (1) product sales under long-ter...
Sterling Tools Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
68
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.61B | 8.28B | 10.26B | 9.32B | 7.72B | 5.07B |
| Gross Profit | 4.74B | 3.53B | 5.14B | 3.17B | 1.15B | 2.10B |
| EBITDA | 1.07B | 761.62M | 1.10B | 1.15B | 1.04B | 685.81M |
| Net Income | 485.86M | 293.28M | 582.93M | 553.65M | 478.78M | 255.37M |
Balance Sheet | ||||||
| Total Assets | 8.30B | 8.21B | 7.91B | 7.13B | 6.57B | 5.67B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 1.59B | 1.63B | 1.00B | 570.96M | 319.01M |
| Total Debt | 1.67B | 1.47B | 1.55B | 1.18B | 1.33B | 1.26B |
| Total Liabilities | 3.01B | 2.95B | 2.91B | 2.66B | 2.56B | 2.11B |
| Stockholders Equity | 5.29B | 5.26B | 5.00B | 4.47B | 4.00B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 15.78M | 89.73M | 477.68M | 724.56M | 296.51M | -269.69M |
| Operating Cash Flow | 291.15M | 636.03M | 1.24B | 1.02B | 628.57M | 248.23M |
| Investing Cash Flow | -380.88M | -209.57M | -1.25B | -487.39M | -533.88M | -392.13M |
| Financing Cash Flow | 68.01M | -179.00M | 944.00K | -328.89M | -56.91M | 100.87M |
Sterling Tools Limited Technical Analysis
Negative
271.30
Price Trends
234.44
Negative
226.52
Negative
263.53
Negative
Market Momentum
-7.78
Positive
37.72
Neutral
7.71
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 271.3 is above the 20-day moving average (MA) of 227.09, above the 50-day MA of 234.44, and above the 200-day MA of 263.53, indicating a bearish trend. The MACD of -7.78 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 7.71 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹56.89B | 19.93 | ― | 0.89% | 6.30% | 12.15% | |
68 Neutral | ₹77.19B | 29.52 | ― | 0.39% | -23.51% | -53.01% | |
65 Neutral | ₹35.94B | 23.60 | ― | 0.27% | 15.57% | 73.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | ₹7.42B | 25.84 | ― | 0.87% | -19.34% | -49.87% | |
50 Neutral | ₹101.88B | 149.32 | ― | 0.38% | 3.88% | -85.35% |
* Industrials Sector Average
IN:STERTOOLS
Sterling Tools Limited
209.85
-141.61
-40.29%
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-14.06%
Sterling Tools Limited Corporate Events
Sterling Tools to Transfer Unclaimed Shareholdings to IEPF Authority
Jun 7, 2026
Sterling Tools Limited has notified stock exchanges that it has published notices in leading English and Hindi newspapers about the proposed transfer of certain equity shares to the Investor Education and Protection Fund Authority. The affected sh...
Sterling Tools Completes Postal Ballot Dispatch, Enables Remote E-Voting for Shareholders
May 27, 2026
Sterling Tools Limited has notified the stock exchanges that it has completed dispatch of its Postal Ballot Notice and has published the related shareholder communication in leading English and Hindi newspapers. The company has also informed inves...
Sterling Tools Ties Up With China’s Nanjing Haohang to Build ARAS for Indian Two-Wheeler Market
Apr 27, 2026
Sterling Tools Limited has entered into a technical collaboration and supply agreement with China-based Nanjing Haohang Technology Co. Ltd. to localize engineering, system adaptation, manufacturing, and sales of advanced rider assistance systems f...
Sterling Tools Confirms SEBI Dematerialisation Compliance for March 2026 Quarter
Apr 4, 2026
Sterling Tools Limited has reported that its Registrar and Share Transfer Agent, MAS Services Limited, has issued a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 3...
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.