Sterling Tools

NSE: STERTOOLS · Auto Components & Equipments

52W Range₹155 ₹343

Snapshot

Unlock Sterling Tools's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Sterling Tools Limited is a manufacturer of high tensile cold forged fasteners primarily serving original equipment manufacturers in the automotive sector. The company also produces motor control units for the automobile industry and engages in the leasing of immovable property.

Business Model

The company generates revenue through the sale of specialised fasteners and motor control units to automotive OEMs across various vehicle segments. It also derives income from the leasing of its property assets.

Growth Outlook

Growth is driven by the expansion of its product portfolio into motor control units and the continued demand for high-quality fasteners across diverse vehicle segments including passenger, commercial, and two-wheeler markets.

Key Risks

  • Cyclicality of Automotive Industry. The company's performance is highly dependent on the production volumes of automotive OEMs, which are sensitive to economic cycles.
  • Raw Material Price Volatility. Fluctuations in the prices of steel and other raw materials can significantly impact manufacturing margins.
  • Technological Disruption. The shift towards electric vehicles necessitates continuous adaptation of product offerings to remain relevant in the evolving automotive landscape.
  • Export Market Risks. Exposure to international markets introduces risks related to geopolitical instability, currency fluctuations, and varying regulatory standards.

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Key Metrics

P/E

30.6x

Q1 FY27 · consolidated

30.6 vs 20.1x5Y avg

EV/EBITDA

10.1x

Q1 FY27 · consolidated

10.1 vs 9.9x5Y avg

NET PROFIT MARGIN

2.7%

Q1 FY27 · consolidated

-2.0 ppYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Sterling ToolsSTERTOOLS
₹804 Cr30.6110.0610.4%5.0%9.8%-31.8%
Pradeep MetalsPRADPME
₹849 Cr27.9816.128.4%16.9%24.9%28.0%+112.3%
RNIT AI SolutionRNITAI
₹847 Cr52.2735.4540.9%16.4%20.1%
Veljan DenisonVELJAN
₹846 Cr46.7519.445.5%26.0%11.1%14.7%+51.6%
ISTISTLTD
₹763 Cr4.963.65164.7%9.7%12.2%-26.4%
Automotive Stampings and Assemblies LimitedASAL
₹752 Cr25.2012.6328.3%6.5%132.9%55.7%-1.9%

As of Q1 FY27

Financials