Sterling Tools Ltd Stock Analysis

BSE: 530759 | NSE: STERTOOLS | Fasteners | Small Cap

BSE Share Price 29-Nov-2022 18:01
281.90 13.40 (4.99%)

DeciZen - Make an Informed Decision on Sterling Tools

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Sterling Tools Price Chart

P/E Ratio (SA) :
24.01
Market Cap :
967.3 Cr.
52-wk low :
116.1
52-wk high :
322
Bole Toh?

1. Is Sterling Tools Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sterling Tools Ltd is a average quality company.

2. Is Sterling Tools Ltd undervalued or overvalued?

The key valuation ratios of Sterling Tools Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sterling Tools Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sterling Tools Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sterling Tools:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sterling Tools Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.9%12.8%14.9%17.1%19.6%21.1%13.9%9.3%7.4%7.5%-
Value Creation Index -0.3-0.10.10.20.40.5-0.0-0.3-0.5-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 283301340369371453512364355471545
YoY Gr. Rt. %-6.7%12.8%8.6%0.4%22.1%13.1%-28.9%-2.5%32.6%-
Adj EPS 3.14.76.28.510.513.512.28.678.111.2
YoY Gr. Rt. %-54.8%31.6%37.4%23.1%28.8%-10.1%-29%-19.2%16.6%-
BVPS (₹) 2629.434.3394868.978.985.792.9100.8107.2
Adj Net Profit 10.416.221.329.235.948.743.831.125.129.340
Cash Flow from Ops. 37.948.828.156.261.54842.451.819.359.5-
Debt/CF from Ops. 2.31.32.61.20.70.72.31.45.41.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.9%4.9%-2.7%32.6%
Adj EPS 11.5%-5%-12.5%16.6%
BVPS 16.3168.58.5
Share Price 30.8% -6.4% 15.7% 57.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 12.217.119.523.324.223.616.410.57.88.410.8
Op. Profit Mgn % 12.614.213.716.820.420.216.81718.514.914.6
Net Profit Mgn % 3.75.46.37.99.710.88.58.57.16.27.4
Debt to Equity 10.70.60.50.20.10.40.20.30.30.1
Working Cap Days 1461171041089886100152173157146
Cash Conv. Cycle 7055443936385273908769

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 10.80%

Sales growth is good in last 4 quarters at 21.52%

Sales growth has been subdued in last 3 years -2.74%

Net Profit has been subdued in last 3 years -12.53%

Latest Financials - Sterling Tools Ltd.

Standalone Consolidated
TTM EPS (₹) 11.2 10.7
TTM Sales (₹ Cr.) 545 643
BVPS (₹.) 107.2 105.2
Reserves (₹ Cr.) 379 372
P/BV 2.51 2.55
PE 24.01 25.11
From the Market
52 Week Low / High (₹) 116.05 / 322.00
All Time Low / High (₹) 1.12 / 477.70
Market Cap (₹ Cr.) 967
Equity (₹ Cr.) 7.2
Face Value (₹) 2
Industry PE 44.8

Management X-Ray of Sterling Tools :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sterling Tools

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Sterling Tools Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sterling Tools on 29-Nov-2022 18:01 is : 281.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 29-Nov-2022 18:01 the market cap of Sterling Tools stood at ₹ 967.2.
The latest PE ratio of Sterling Tools as of 29-Nov-2022 18:01 is 24.01.
The latest PB ratio of Sterling Tools as of 29-Nov-2022 18:01 is 2.51
The 52-week high of Sterling Tools is ₹ 322.0 and the 52-week low is ₹ 116.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Sterling Tools is ₹ 544.7 ( Cr.) .

About Sterling Tools Ltd

Sterling Tools Ltd was incorporated in 1979 and commercial production began in 1981. It made its first public offer in 1995 and began trading at Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). As a premier producer of cold forged hi-tensile fasteners it supplies to all major auto OEMs. It is one of the leading suppliers in India with a client base that extends across India, USA, Europe, South America and the Middle East.

The company’s manufacturing facilities are spread across three plants, all located in the industrial hub of Faridabad in Haryana close to New Delhi. The facilities have state-of-the-art equipment and processes geared for quality solutions. With highly experienced engineering leaders, STL’s engineering department handles customer requirements with professionalism and precision. It is committed to delivering a quality product that is wholly reliable and meets its customers’ needs optimally.

Business area of the company

The company is engaged in manufacturing of high tensile cold forged fasteners for Automotive Industry having its presence amongst all Auto Segments- Passenger Vehicle (PV), Commercial Vehicle (CV), Two Wheelers, Farm Equipment and Off-Roadways. Its subsidiary company Sterling GTAKE E-mobility Limited is engaged in the manufacture of Motor Control Units (MCUs) for electric vehicle.

Awards

  • 2010: Winner of Supplier Quality Improvement Contest by Kirloskar Oil Engines Limited
  • 2012: Takata India Pvt Ltd Supplier Meet 2012 Appreciation Award presented to Sterling Tools Ltd
  • 2013: “Power of Dreams” presented to Sterling Tools Ltd in recognition of the Valuable Support and Contribution by Honda
  • 2014: GM Supplier Quality Excellence Award to Sterling Tools Ltd
  • 2013-14: Maruti Suzuki India Limited, Certificate to STL in recognition of their sincere efforts and superior performance in the field of Overall Performance.
  • 2015: Supplier Positioning Certification from Honda as A1
  • 2014-15: Maruti Suzuki, Certificate of Appreciation presented to STL in recognition of their superior performance in the field of Special Support.
  • 2016-17: STL Won Big Award At 3rd ACMA ACT Summit, Pune 

History and milestones

  • 1979: Incorporation of the company.
  • 1981: The company began operations.
  • 1984: Tied up with Hero Honda as its customer.
  • 1985: Tied up with Mahindra as its customer.
  • 1985: Tied up with Tata as its customer.
  • 1989: Tied up with Maruti Suzuki as its customer.
  • 1999: Set up WDU Plant.
  • 2000: Secured  ISO 9001 certification.
  • 2001: Bags HMSI certification.
  • 2003: Secured ISO 14001 certification.
  • 2005: Received Lab Accreditation.
  • 2006: Set up Prithla Plant.
  • 2007: Secured  TS Certification.
  • 2012: Tied up with Honda Car as its customer.
  • 2012: Set up Tech center.
  • 2015: Set up Dip spin coating facility.
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