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Sterling Tools Limited (STERTOOLS) AI Stock Analysis
Sterling Tools Limited
(NSE:STERTOOLS)
Sterling Tools scores below average, driven primarily by a deteriorating financial outlook: after years of strong revenue growth, FY2026 projections show falling sales, sharply lower profits, shrinking EBITDA and net margins, a drop in return on equity to ~5.6%, and free cash flow collapsing to ₹90M with poor earnings-to-cash conversion. Technicals compound the caution, with the price below all key moving averages and a negative MACD, alongside elevated volatility (beta 2.05). Valuation offers limited support, as a P/E near 30 looks rich against declining earnings, though a 2.46% dividend yield provides partial compensation. The main offsetting strength is a conservatively leveraged balance sheet (D/E ~0.28x) with steadily growing equity, which gives the company financial flexibility while it works to stabilise margins and cash generation.
Sterling Tools Limited (STERTOOLS) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 7.19B
- Dividend Yield
- 2.66%
- Average Volume (3M)
- 3,094
- Price to Earnings (P/E)
- 60.0
- Beta (1Y)
- 1.99
- Revenue Growth
- -9.28%
- EPS Growth
- -46.61%
- Country
- India
- Employees
- 613
- Sector
- General
- Sector Strength
- 55
- Industry
- Manufacturing - Tools & Accessories
Sterling Tools Limited Business Overview & Revenue Model
Company Description
Sterling Tools Limited is a key player in the manufacturing and distribution of high-tensile, cold-forged fasteners, primarily supplying original equipment manufacturers (OEMs) throughout India. The company offers an extensive range of fasteners, inc...
How the Company Makes Money
Sterling Tools Limited primarily makes money by manufacturing and selling engineered fasteners and related precision components. Revenue is generated through (i) supply contracts and recurring purchase orders from OEM and industrial customers that us...
Sterling Tools Limited Financial Statement Overview
Summary
Blending the Income Statement (42), Balance Sheet (58) and Cash Flow (45) scores produces a below-average result. Sterling Tools nearly tripled revenue between FY2021 and FY2025, but the FY2026 outlook points to a ~3.8% revenue decline, net income nearly halving to ₹293M, net margin compressing to ~3.5% and EBITDA margin sliding to ~9.2% from ~18.2% in FY2021. Cash generation is the bigger worry: operating cash flow is projected to fall to ₹636M and free cash flow to just ₹90M, with free cash flow covering only ~0.14x of net income, implying weak earnings conversion and heavy capex absorption. The balance sheet is the clear strength, with debt-to-equity at a conservative ~0.28x and equity growing to ₹5.3B, though return on equity is set to fall from ~12.4% in FY2024 to ~5.6% in FY2026.
Income Statement
42NeutralBalance Sheet
58NeutralCash Flow
45Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.50B | 8.28B | 10.26B | 9.32B | 7.72B | 5.07B |
| Gross Profit | 4.06B | 3.53B | 5.14B | 3.17B | 1.15B | 2.10B |
| EBITDA | 951.13M | 761.62M | 1.10B | 1.15B | 1.04B | 685.81M |
| Net Income | 261.98M | 293.28M | 582.93M | 553.65M | 478.78M | 255.37M |
Balance Sheet | ||||||
| Total Assets | 0 | 8.21B | 7.91B | 7.13B | 6.57B | 5.67B |
| Cash, Cash Equivalents and Short-Term Investments | 1.59B | 1.59B | 1.63B | 1.00B | 570.96M | 319.01M |
| Total Debt | 0 | 1.47B | 1.55B | 1.18B | 1.33B | 1.26B |
| Total Liabilities | -5.26B | 2.95B | 2.91B | 2.66B | 2.56B | 2.11B |
| Stockholders Equity | 5.26B | 5.26B | 5.00B | 4.47B | 4.00B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 15.78M | 89.73M | 477.68M | 724.56M | 296.51M | -269.69M |
| Operating Cash Flow | 291.15M | 636.03M | 1.24B | 1.02B | 628.57M | 248.23M |
| Investing Cash Flow | -380.88M | -209.57M | -1.25B | -487.39M | -533.88M | -392.13M |
| Financing Cash Flow | 68.01M | -179.00M | 944.00K | -328.89M | -56.91M | 100.87M |
Sterling Tools Limited Technical Analysis
Price Trends
Market Momentum
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 203.66 is below the 20-day moving average (MA) of 214.97, below the 50-day MA of 218.14, and below the 200-day MA of 226.64, indicating a bearish trend. The MACD of -5.07 indicates Positive momentum. The RSI at 37.81 is Neutral, neither overbought nor oversold. The STOCH value of 16.38 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
Overall Rating
IN:HARSHA65Neutral
IN:SKFINDIA65Neutral
IN:TIIL63Neutral
IN:RKFORGE54Neutral- IN:STERTOOLS46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:HARSHA | 65Neutral | INR 37.75B | 24.38 | ― | 0.36% | 20.22% | 69.59% |
| IN:SKFINDIA | 65Neutral | INR 68.90B | 32.92 | ― | 2.88% | -38.60% | -60.08% |
| IN:TIIL | 63Neutral | INR 58.50B | 17.25 | ― | 0.77% | 12.39% | 33.51% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:RKFORGE | 54Neutral | INR 117.71B | 109.83 | ― | 0.15% | 25.19% | -38.28% |
| IN:STERTOOLS | 46Neutral | INR 7.25B | 59.95 | ― | 2.66% | -9.28% | -46.61% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:STERTOOLS | Sterling Tools Limited | 202.05 | -100.09 | -33.13% | |
| IN:HARSHA | Harsha Engineers International Ltd. | 439.75 | 42.19 | 10.61% | |
| IN:LAKPRE | Lakshmi Precision Screws Limited | 4.74 | -0.85 | -15.21% | |
| IN:RKFORGE | Ramkrishna Forgings Ltd | 696.00 | 162.81 | 30.53% | |
| IN:SKFINDIA | SKF India Limited | 1454.60 | -613.76 | -29.67% | |
| IN:TIIL | Technocraft Industries (India) Limited | 2645.50 | 240.28 | 9.99% |
Sterling Tools Limited Corporate Events
Sterling Tools Posts Higher Half-Year Earnings and Appoints New CFO
Sterling Tools Limited has reported unaudited standalone financial results for the quarter and half year ended 30 September 2026, showing revenue from operations of ₹22,589.34 lakh for the quarter and ₹42,529.51 lakh for the half year, wi...
Sterling Tools Clears Q2 Results and Swiftly Installs New CFO
Sterling Tools Limited’s board has approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, showing continued revenue growth and profitability, which underscores the company’s...
Sterling Tools Posts Strong Q2 Results and Appoints New CFO
Sterling Tools Limited reported unaudited standalone and consolidated financial results for the quarter and half year ended Sept. 30, 2026, showing year-on-year growth in revenue and profit. The board approved these results after audit committee revi...
Sterling Tools schedules FY27 Q2 and half-year earnings call
Sterling Tools Limited has scheduled an earnings conference call with investors and analysts to review its financial and operational performance for the second quarter and half year of FY27, ended 30 September 2026. The call will take place on 28 Oct...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 27, 2026