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Sterling Tools Ltd. Stock Analysis

Small Cap
Evaluated by 572 users | BSE: 530759 | NSE: STERTOOLS |
Fasteners
Sterling Tools (STL) was incorporated in 1979 as a private limited company. This company is engaged in manufacturing and marketing of high tensile cold forged fasteners. It was promoted by M.L.Aggarwal. Being amongst the leading OEM supplier, company serves one of the leading automobile...

Analysis of Financial Track Record

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 14.24%15.43%13.77%9.92%12.76%14.85%17.13%19.59%21.1%13.91%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 180248295283301340369371453512
Y-o-Y Gr. Rt.-38.2%18.9%-4.2%6.7%12.8%8.6%0.4%22.1%13.1%
Adjusted EPS (Rs.) 3.434.594.513.054.726.218.5310.513.5212.15
Y-o-Y Gr. Rt.-33.8%-1.7%-32.4%54.8%31.6%37.4%23.1%28.8%-10.1%
Book Value per Share (Rs.) 17.3620.8323.9825.9929.3934.2838.9747.9868.8578.89
Adjusted Net Profit 11.815.715.410.416.221.329.235.948.743.8
Net Op. Cash Flow (Rs. Cr.) 9.510.818.537.948.828.156.261.54842.4
Debt to Cash Flow from Ops 5.917.125.032.321.342.581.230.650.712.34
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sterling Tools Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.4%11.2%11.5%13.1%
Adjusted EPS 15.1%20.8%12.5%-10.1%
Book Value per Share 18.321.826.514.6
Share Price 26.8% 23% -10.9% 7.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 21.1324.0220.1312.1917.0619.5123.324.1623.6316.44
Operating Profit Margin (%) 16.8814.613.0212.5814.2113.716.7820.420.1516.78
Net Profit Margin (%) 6.556.325.233.695.366.257.99.6910.758.54
Debt to Equity 0.951.081.140.990.650.620.520.240.140.35
Working Capital Days 1161191351461171041089886100
Cash Conversion Cycle 66616670554439363852
Entity Percentage Holding
Promoters 65.77%
Institutions 8.16%
Non-Institutions 26.07%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Sterling Tools's performance infers:

Sterling Tools earnings have grown by 20.8%, whereas share price has appreciated 23% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sterling Tools share prices over the last 10 years. Here is what we found out:

Sterling Tools share price has appreciated 20.9% annually over the past ten years.

Sterling Tools (STL) was incorporated in 1979 as a private limited company. This company is engaged in manufacturing and marketing of high tensile cold forged fasteners. It was promoted by M.L.Aggarwal. Being amongst the leading OEM supplier, company serves one of the leading automobile companies located at India, Europe and USA.

Company's manufactures high tensile fasteners for automobiles and other industrial applications. Headquartered at Faridabad, company has manufacturing units

Sterling Tools (STL) was incorporated in 1979 as a private limited company. This company is engaged in manufacturing and marketing of high tensile cold forged fasteners. It was promoted by M.L.Aggarwal. Being amongst the leading OEM supplier, company serves one of the leading automobile companies located at India, Europe and USA.

Company's manufactures high tensile fasteners for automobiles and other industrial applications. Headquartered at Faridabad, company has manufacturing units located at Ballabhgarh, Prithla and Uttaranchal. The company has received ISO 9002 and ISO 14001:2004 Certifications for its quality management.

Company has marketing network of 60 dealers through which in India, it has presence in Agra, Ahmedabad, Allahabad, Ambala, Bangalore, Chandigarh, Chennai, Cuttack, Ernakulam, Gandhinagar, Ghaziabad, Gorakhpur, Guwahati, Hyderabad, Indore, Jalandhar, Jammu, Jamshedpur, Kanpur, Kolkata, Lucknow, Ludhiana, Meerut, Mumbai, Nasik, Patna, Pune, Ranchi, Salem, Trivandrum, Vijaywada and Varanasi. Besides this the company also has presence in Bangladesh, Detroit (USA), Nepal and Italy.

Products

Special Fasteners

Surface treatment and coatings

Standard Fasteners

Chassis Fasteners

Engine Fasteners

Company manufactures bolts and screws that have size ranging from M5 to M24 and length ranging from 8 mm to 250 mm. It also manufactures size ranging from M6 to M22.

Company has regional offices in Chennai and Pune and residential representatives in places like Jamshedpur and Mumbai. Company has clientele namely Eicher, Escorts, Bajaj Auto, Maruti Udyog, Hero Honda and Telco.

Milestones

1979- Sterling Tools was incorporated as a private limited company. This, later became public limited on October, 1994 with an installed capacity of 20 million pieces of fastners

Between 1980-92- Company underwent through capacity expansion and started producing product ranging from 16mm draneter fastners to 24 mm draneter fastners. The capacity was increased from 165 million pieces to 230 million pieces. Company’s installed capacity (tonnage wise) was also increased from 3200 tonnes to 7000 tonnes.

2000- Company started promoting a new B2B (business-to-business) portal for automotive spare parts called sparesindia.com.

Future Plan

Sterling Tools aims to promote the exports turnover along with increase in domestic turnover.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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