Sterling Tools Limited (STERTOOLS) AI Stock Analysis

• Market Cap: ₹11.11B
• Dividend Yield: 0.66%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.57
• Revenue Growth: -5.67%
• EPS Growth: -19.59%
• Country: IN
• Employees: 613
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.48
• Shares Outstanding: 36,184,320
• 10 Day Avg. Volume: 9,715
• 30 Day Avg. Volume: 12,762
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹398.00
• Price Target Upside: 27.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ₹398.00 ▲(27.97% Upside)

Sterling Tools Limited shows strong financial performance with robust revenue growth and solid cash flow operations. Technical indicators suggest moderate upward momentum. However, the valuation is fair, with a P/E ratio slightly above industry norms and a low dividend yield. Caution is advised due to rising debt levels. The lack of notable earnings call insights or corporate events leaves these areas unaccounted for in the analysis.

Sterling Tools Limited Business Overview & Revenue Model

Company Description

Sterling 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 Money

Sterling 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, indicating a positive trajectory in the manufacturing sector. The balance sheet is robust, showcasing effective equity management and a manageable debt position, although caution is advised due to rising debt levels. Cash flow operations are solid, supporting net income effectively, though historical volatility in free cash flow suggests a need for continued focus on cash management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	10.26B	9.23B	7.72B	3.48B	5.00B
Gross Profit	5.14B	3.17B	2.93B	1.75B	2.10B
EBITDA	1.10B	1.15B	1.04B	641.54M	685.81M
Net Income	582.93M	553.65M	478.78M	235.02M	255.37M
Balance Sheet
Total Assets	7.91B	7.13B	6.57B	5.16B	5.67B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.00B	570.96M	462.04M	319.01M
Total Debt	1.55B	1.18B	1.33B	1.05B	1.26B
Total Liabilities	2.91B	2.66B	2.56B	1.85B	2.11B
Stockholders Equity	5.00B	4.47B	4.00B	3.31B	3.56B
Cash Flow
Free Cash Flow	477.68M	724.56M	296.51M	-16.71M	-269.69M
Operating Cash Flow	1.24B	1.02B	628.57M	158.22M	248.23M
Investing Cash Flow	-1.25B	-487.39M	-533.88M	-493.19M	-392.13M
Financing Cash Flow	944.00K	-328.89M	-56.91M	229.41M	100.87M

Sterling Tools Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 311.00
• 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 311 is below the 20-day moving average (MA) of 347.80, below the 50-day MA of 353.81, and below the 200-day MA of 426.50, indicating a bearish trend. The MACD of -11.10 indicates Positive momentum. The RSI at 27.26 is Positive, neither overbought nor oversold. The STOCH value of 7.23 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
STERTOOLS	73 Outperform	₹11.11B	22.67		0.66%	-5.67%	-19.59%
MMFL	67 Neutral	₹14.68B	13.24		1.34%	-4.47%	-17.62%
GNA	67 Neutral	₹12.99B	12.70		0.99%	-3.10%	8.21%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
HITECHGEAR	63 Neutral	₹12.50B	38.87		0.74%	-16.26%	-64.68%