Sterling Tools Limited (STERTOOLS) AI Stock Analysis

• Market Cap: ₹11.26B
• Dividend Yield: 0.8%
• Average Volume (3M): 8.41K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.66
• Revenue Growth: -5.67%
• EPS Growth: -19.62%
• Country: IN
• Employees: 613
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.48
• Shares Outstanding: 36,184,320
• 10 Day Avg. Volume: 12,034
• 30 Day Avg. Volume: 8,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹363.00
• Price Target Upside: 16.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹363.00 ▲(16.61% Upside)

Sterling Tools Limited's overall stock score reflects strong financial performance, with significant revenue and profit growth. However, technical analysis indicates a neutral trend, and the valuation suggests the stock is moderately priced. The absence of earnings call and corporate events data limits additional insights.

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, two wheelers, farm and construction equipment, and off-roadways. It also engages in leasing of immovable property; and manufacture and trading of motor control unit used in automobile industry. The company exports its products to Europe, the United States, South America, and the Middle East. Sterling Tools Limited was incorporated in 1979 and is based in Faridabad, India.

How the Company Makes Money

Sterling Tools Limited generates revenue primarily through the manufacturing and sale of high-tensile fasteners to the automotive industry. The company supplies its products to major automobile manufacturers and Tier 1 suppliers, forming long-term partnerships that ensure consistent demand for its fasteners. By maintaining high standards of quality and leveraging advanced manufacturing technologies, Sterling Tools Limited is able to offer a competitive product range that meets the stringent requirements of its clients. Additionally, the company's focus on research and development enables it to innovate and introduce new products, further expanding its market presence and revenue streams.

Sterling Tools Limited Financial Statement Overview

Summary

Sterling Tools Limited exhibits strong financial health with significant revenue and profit growth. The balance sheet is robust with effective equity management and manageable debt, though caution is advised due to rising debt levels. Cash flow operations are solid, but historical volatility in free cash flow suggests a need for continued cash management focus.

Income Statement

Sterling Tools Limited has demonstrated strong revenue growth with a consistent upward trajectory, increasing from 3,482.8 million in 2021 to 10,262.995 million by 2025. The gross profit margin has remained healthy, improving from 50.3% in 2021 to approximately 50.1% in 2025. Net profit margin was stable, with a slight increase from 6.8% in 2021 to about 5.7% in 2025. The EBIT margin improved significantly from 10.5% in 2021 to 41.2% in 2025, showcasing enhanced operational efficiency. However, EBITDA margins dropped from 18.4% in 2021 to 10.7% in 2025, indicating increased operational expenses relative to EBITDA.

Balance Sheet

Improvements in the balance sheet are evident with an increase in stockholders' equity from 3,064.592 million in 2020 to 4,996.744 million in 2025. The debt-to-equity ratio decreased from 0.24 in 2020 to 0.31 in 2025, reflecting manageable leverage. The equity ratio improved, indicating a strong capital structure with equity as a larger component of total assets. Return on Equity (ROE) displayed stability, showing the company's effective use of equity to generate profits, with a slight drop from 9.9% in 2021 to 11.7% in 2025. However, the increasing debt level poses potential risks if not managed prudently.

Cash Flow

The cash flow statement reflects a robust operating cash flow, increasing from 158.218 million in 2021 to 1,235.3 million in 2025, indicative of strong cash generation from core operations. The free cash flow experienced fluctuations, with negative values in earlier years but reached 477.68 million in 2025, suggesting improved cash management. The operating cash flow to net income ratio remained healthy, ensuring that net income is backed by sufficient cash flow. However, the free cash flow to net income ratio indicates some volatility, reflecting capital expenditure impacts.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.26B	10.26B	9.23B	7.72B	5.00B	3.48B
Gross Profit	5.14B	5.14B	3.17B	2.93B	2.10B	1.75B
EBITDA	1.14B	1.10B	1.15B	1.04B	685.81M	641.54M
Net Income	582.93M	582.93M	553.65M	478.78M	255.37M	235.02M
Balance Sheet
Total Assets	7.91B	7.91B	7.13B	6.57B	5.67B	5.16B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.63B	1.00B	570.96M	319.01M	462.04M
Total Debt	1.55B	1.55B	1.18B	1.33B	1.26B	1.05B
Total Liabilities	2.91B	2.91B	2.66B	2.56B	2.11B	1.85B
Stockholders Equity	5.00B	5.00B	4.47B	4.00B	3.56B	3.31B
Cash Flow
Free Cash Flow	0.00	477.68M	724.56M	296.51M	-269.69M	-16.71M
Operating Cash Flow	0.00	1.24B	1.02B	628.57M	248.23M	158.22M
Investing Cash Flow	0.00	-1.25B	-487.39M	-533.88M	-392.13M	-493.19M
Financing Cash Flow	0.00	944.00K	-328.89M	-56.91M	100.87M	229.41M

Sterling Tools Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 311.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STERTOOLS, the sentiment is Negative. The current price of 311.3 is below the 20-day moving average (MA) of 329.32, below the 50-day MA of 329.48, and below the 200-day MA of 381.57, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 38.08 is Neutral, neither overbought nor oversold. The STOCH value of 2.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STERTOOLS.

Sterling Tools Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	70 Outperform	₹13.36B	13.37	11.90%	0.94%	-3.10%	8.21%
MMFL	70 Outperform	₹14.89B	14.31	13.65%	1.30%	-4.47%	-17.62%
STERTOOLS	69 Neutral	₹11.26B	22.98	―	0.80%	-5.67%	-19.62%
HITECHGEAR	63 Neutral	₹14.11B	43.89	8.35%	0.67%	-20.12%	-73.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%