Sterling Tools Ltd - Stock Valuation and Financial Performance

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

Sterling Tools Share Price

306.20 -9.15 -2.90%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Sterling Tools

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Sterling Tools stock performance -

mw4me loader
P/E Ratio (SA):
35.39
Market Cap:
1,136 Cr.
52-wk low:
313
52-wk high:
456.8

Is Sterling Tools Ltd an attractive stock to invest in?

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 Weak which suggest that the price of Sterling Tools Ltd is likely to Fall 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 12.8%14.9%17.1%19.6%21.1%13.9%9.3%7.4%7.3%8.8%-
Value Creation
Index
-0.10.10.20.40.50.0-0.3-0.5-0.5-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 301340369371453512364355471598598
Sales YoY Gr.-12.8%8.6%0.4%22.1%13.1%-28.9%-2.5%32.6%26.8%-
Adj EPS 4.76.28.510.513.512.28.678.110.78.9
YoY Gr.-31.6%37.4%23.1%28.8%-10.1%-29%-19.2%16.6%31.7%-
BVPS (₹) 29.434.3394868.978.985.792.9100.8111.4116.9
Adj Net
Profit
16.221.329.235.948.743.831.125.129.338.632
Cash Flow from Ops. 48.828.156.261.54842.451.819.344.158.4-
Debt/CF from Ops. 1.32.61.20.70.72.31.45.42.82.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.9%5.7%18%26.8%
Adj EPS 9.5%-4.6%7.5%31.7%
BVPS16%10.1%9.2%10.6%
Share Price 29.8% 1.4% 16% -22.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
17.119.523.324.223.616.410.57.88.410.17.8
Op. Profit
Mgn %
14.213.716.820.420.216.81718.514.914.513.1
Net Profit
Mgn %
5.46.37.99.710.88.58.57.16.26.55.4
Debt to
Equity
0.70.60.50.20.10.40.20.30.30.3-
Working Cap
Days
117104108988610015217316313980
Cash Conv.
Cycle
5544393638527390938539

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.95%

Return on Equity has declined versus last 3 years average to 7.80%

Net Profit has been subdued in last 3 years 7.46%

Sales growth is not so good in last 4 quarters at 3.17%

Latest Financials - Sterling Tools Ltd.

Standalone Consolidated
TTM EPS (₹) 8.9 13
TTM Sales (₹ Cr.) 598 874
BVPS (₹.) 116.9 120
Reserves (₹ Cr.) 414 425
P/BV 2.70 2.63
PE 35.39 24.23
From the Market
52 Week Low / High (₹) 313.00 / 456.75
All Time Low / High (₹) 1.12 / 477.70
Market Cap (₹ Cr.) 1,136
Equity (₹ Cr.) 7.2
Face Value (₹) 2
Industry PE 47

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

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Sterling Tools

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales301340369371453512364355471598
Operating Expenses 260293307295362426303291401511
Manufacturing Costs7590102103128147100105138174
Material Costs130148144134168207137121190254
Employee Cost 26283231343636364245
Other Costs 28282927333730283238
Operating Profit 42476276918661657086
Operating Profit Margin (%) 13.8%13.7%16.8%20.4%20.0%16.8%16.9%18.2%14.8%14.5%
Other Income 1127666336
Interest 8766446878
Depreciation 10121317181924262731
Exceptional Items 000000-3-203
Profit Before Tax 24294360757034314057
Tax 9815212625571015
Profit After Tax 16212839494529243041
PAT Margin (%) 5.2%6.2%7.7%10.6%10.7%8.8%8.0%6.9%6.3%6.9%
Adjusted EPS (₹)4.66.28.311.513.512.58.16.88.311.5
Dividend Payout Ratio (%)22%16%36%17%15%16%25%15%12%17%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 101117133164248284309335363401
Share Capital 7777777777
Reserves 94110127157241277301327356394
Minority Interest0000000000
Debt5861552825865489104101
Long Term Debt25222325165448384337
Short Term Debt33393239326516164
Trade Payables21262729363321302629
Others Liabilities 44506950455962647078
Total Liabilities 223255283271355462445517563609

Fixed Assets

Gross Block182214225258269319412426475495
Accumulated Depreciation738487103121137159181208238
Net Fixed Assets109130138155149182253245266257
CWIP 3010104710111
Investments 56618727234464461
Inventories36424146558259109102124
Trade Receivables35393634454128425765
Cash Equivalents 611131411272046
Others Assets29364915223360487344
Total Assets 223255283271355462445517563609

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 49285662484252194458
PBT 24294360757034314057
Adjustment 20222218171730332935
Changes in Working Capital 11-1552-16-21-5-36-14-19
Tax Paid -7-8-14-19-28-23-6-8-11-15
Cash Flow From Investing Activity -17-30-25-27-76-92-3-51-53-43
Capex -16-29-25-16-24-95-46-16-48-29
Net Investments -1-1-1-12-52343-3712-19
Others 00001002-185
Cash Flow From Financing Activity -33-4-21-422652-42238-12
Net Proceeds from Shares 00004400000
Net Proceeds from Borrowing -5150-12411-149-3
Interest Paid -7-7-6-5-3-4-7-7-6-8
Dividend Paid -3-3-10-7-7-9-90-4-4
Others -176-10-30424-274593
Net Cash Flow -2-59-8-137-9-14
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)16.4919.4822.6726.3523.6116.869.87.598.5210.84
ROCE (%)18.8820.325.3632.4232.342210.449.441012.82
Asset Turnover Ratio1.471.581.541.51.481.250.80.760.91.05
PAT to CFO Conversion(x)3.061.3321.590.980.931.790.791.471.41
Working Capital Days
Receivable Days39363331313135353736
Inventory Days41373738394971848068
Payable Days50586775716171765439

Sterling Tools Ltd Stock News

Sterling Tools Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sterling Tools on 28-Mar-2024 16:01 is ₹306.2.
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 28-Mar-2024 16:01 the market cap of Sterling Tools stood at ₹1,136.
The latest P/E ratio of Sterling Tools as of 28-Mar-2024 16:01 is 35.39.
The latest P/B ratio of Sterling Tools as of 28-Mar-2024 16:01 is 2.70.
The 52-week high of Sterling Tools is ₹456.8 and the 52-week low is ₹313.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sterling Tools is ₹597.6 ( 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.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.