Sterling Tools Limited (IN:STERTOOLS)
:STERTOOLS
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Sterling Tools Limited
(STERTOOLS)
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Rating:60Neutral
Price Target:
₹212.00
▼(-21.86% Downside)
Action:DowngradedDate:03/19/26
The score is primarily supported by strong financial performance (rapid revenue expansion and sharply higher EBIT margin), but is held back by weak technicals (price below key moving averages and negative MACD) and a demanding valuation (very high P/E with only a modest dividend yield).
Positive Factors
Revenue Scale-Up
A more than threefold revenue rise to 2025 indicates durable scale and deeper OEM penetration. Larger revenue base improves bargaining, supports fixed-cost absorption and qualifies the company for long-term supply contracts, strengthening recurring B2B cash flows over months to years.
Negative Factors
EBITDA Margin Decline
A marked EBITDA margin deterioration suggests rising operating costs or lower coverage of indirect costs, which can erode cash conversion despite higher revenue. If persistent, it pressures long-term free cash flow and limits reinvestment or returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scale-Up
A more than threefold revenue rise to 2025 indicates durable scale and deeper OEM penetration. Larger revenue base improves bargaining, supports fixed-cost absorption and qualifies the company for long-term supply contracts, strengthening recurring B2B cash flows over months to years.
Read all positive factors
Sterling Tools Limited (STERTOOLS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.33B
Dividend Yield0.87%
Average Volume (3M)8.83K
Price to Earnings (P/E)157.5
Beta (1Y)1.98
Revenue Growth-19.33%
EPS Growth-26.30%
CountryIN
Employees613
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.43
Shares Outstanding36,344,425
10 Day Avg. Volume9,282
30 Day Avg. Volume8,827
Financial Highlights & Ratios
PEG Ratio3.85
Price to Book (P/B)2.34
Price to Sales (P/S)1.14
P/FCF Ratio24.46
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 manufactures and markets high tensile cold forged fasteners to original equipment manufacturers in India. The company offers standard, special, chassis, and engine fasteners for use in passenger vehicles, commercial vehicles...
How the Company Makes Money
Sterling Tools Limited makes money primarily by manufacturing and selling fasteners and precision components to OEM and industrial customers. Revenue is generated through (1) B2B supply contracts and purchase orders where pricing is typically link...
Sterling Tools Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.61B | 10.26B | 9.32B | 7.72B | 5.07B | 3.52B |
| Gross Profit | 4.74B | 5.14B | 3.17B | 1.15B | 2.10B | 1.75B |
| EBITDA | 1.07B | 1.10B | 1.15B | 1.04B | 685.81M | 641.54M |
| Net Income | 485.86M | 582.93M | 553.65M | 478.78M | 255.37M | 235.02M |
Balance Sheet | ||||||
| Total Assets | 8.30B | 7.91B | 7.13B | 6.57B | 5.67B | 5.16B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 1.63B | 1.00B | 570.96M | 319.01M | 448.59M |
| Total Debt | 1.67B | 1.55B | 1.18B | 1.33B | 1.26B | 1.05B |
| Total Liabilities | 3.01B | 2.91B | 2.66B | 2.56B | 2.11B | 1.85B |
| Stockholders Equity | 5.29B | 5.00B | 4.47B | 4.00B | 3.56B | 3.31B |
Cash Flow | ||||||
| Free Cash Flow | 15.78M | 477.68M | 724.56M | 296.51M | -269.69M | -16.71M |
| Operating Cash Flow | 291.15M | 1.24B | 1.02B | 628.57M | 248.23M | 158.22M |
| Investing Cash Flow | -380.88M | -1.25B | -487.39M | -533.88M | -392.13M | -493.19M |
| Financing Cash Flow | 68.01M | 944.00K | -328.89M | -56.91M | 100.87M | 229.41M |
Sterling Tools Limited Technical Analysis
Neutral
271.30
Price Trends
214.31
Negative
245.87
Negative
288.88
Negative
Market Momentum
-11.57
Negative
54.16
Neutral
54.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STERTOOLS, the sentiment is Neutral. The current price of 271.3 is above the 20-day moving average (MA) of 184.67, above the 50-day MA of 214.31, and below the 200-day MA of 288.88, indicating a neutral trend. The MACD of -11.57 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹19.86B | 24.91 | ― | 1.07% | -4.47% | -17.62% | |
72 Outperform | ₹15.94B | 10.02 | ― | 0.95% | -4.65% | 9.95% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ₹7.33B | 157.48 | ― | 0.87% | -19.33% | -26.30% | |
60 Neutral | ₹10.54B | 378.45 | ― | 0.74% | -17.86% | -49.46% |
* Industrials Sector Average
IN:STERTOOLS
Sterling Tools Limited
201.65
-83.95
-29.39%
IN:GNA
GNA Axles Ltd
371.40
89.72
31.85%
IN:HITECHGEAR
Hi-Tech Gears Limited
560.00
-1.19
-0.21%
IN:MMFL
MM Forgings Limited
411.35
93.21
29.30%
IN:RACLGEAR
RACL Geartech Ltd
1,280.90
568.86
79.89%
Sterling Tools Limited Corporate Events
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...
Sterling Tools Publishes Q3 FY26 Financials in National Dailies
Feb 4, 2026
Sterling Tools notified exchanges that its board-approved unaudited results for the third quarter and nine months ended 31 December 2025 have been published in national dailies, fulfilling disclosure duties under SEBI regulations. By circulating t...
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.