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Sterling Tools Limited
(STERTOOLS)
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Rating:60Neutral
Price Target:
₹224.00
▼(-7.91% Downside)
Action:Reiterated
Date:06/24/26
Overall score reflects weakening FY2026 financial performance (revenue decline, margin compression, and much lower free cash flow) as the main constraint, partly offset by strong technical uptrend/momentum. Valuation is a secondary headwind due to the high P/E with only a modest dividend yield.
Positive Factors
Controlled Leverage
Controlled leverage provides Sterling Tools with balance-sheet resilience and financial flexibility across the next several quarters. Lower debt relative to equity can reduce refinancing pressure, preserve borrowing capacity, and support continued investment even when operating performance fluctuates.
Negative Factors
Revenue Slowdown
The FY2026 revenue decline interrupts Sterling Tools’ prior growth trend and signals softer demand or execution over the near term. A continuing top-line slowdown would reduce operating leverage, constrain investment capacity, and make future profit recovery more dependent on efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Controlled Leverage
Controlled leverage provides Sterling Tools with balance-sheet resilience and financial flexibility across the next several quarters. Lower debt relative to equity can reduce refinancing pressure, preserve borrowing capacity, and support continued investment even when operating performance fluctuates.
Read all positive factors
Sterling Tools Limited (STERTOOLS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.76B
Dividend Yield2.49%
Average Volume (3M)3.01K
Price to Earnings (P/E)29.6
Beta (1Y)2.11
Revenue Growth-9.28%
EPS Growth-46.61%
CountryIN
Employees613
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)7.23
Shares Outstanding36,344,425
10 Day Avg. Volume1,999
30 Day Avg. Volume3,013
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)1.11
Price to Sales (P/S)0.70
P/FCF Ratio65.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)33.3
Revenue Forecast (FY)₹13.48B
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, ...
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...
Sterling Tools Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
68
Positive
Cash Flow
46
Neutral
| 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 | 0.00 | 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 | 0.00 | 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
Negative
243.25
Price Trends
230.72
Negative
234.24
Negative
235.31
Negative
Market Momentum
-3.91
Negative
39.15
Neutral
24.42
Neutral
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 243.25 is above the 20-day moving average (MA) of 219.13, above the 50-day MA of 230.72, and above the 200-day MA of 235.31, indicating a bearish trend. The MACD of -3.91 indicates Negative momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 24.42 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₹75.57B | 36.06 | ― | 2.63% | -38.60% | -60.08% | |
65 Neutral | ₹73.73B | 21.70 | ― | 0.61% | 12.39% | 33.51% | |
64 Neutral | ₹40.62B | 26.19 | ― | 0.34% | 20.22% | 69.59% | |
60 Neutral | ₹7.76B | 29.61 | ― | 2.49% | -9.28% | -46.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹129.47B | 120.75 | ― | 0.14% | 8.55% | -74.66% |
* General Sector Average
IN:STERTOOLS
Sterling Tools Limited
213.60
-125.10
-36.94%
IN:HARSHA
Harsha Engineers International Ltd.
446.20
34.24
8.31%
IN:LAKPRE
Lakshmi Precision Screws Limited
5.90
-0.36
-5.75%
IN:RKFORGE
Ramkrishna Forgings Ltd
710.70
133.98
23.23%
IN:SKFINDIA
SKF India Limited
1,528.60
-724.13
-32.14%
IN:TIIL
Technocraft Industries (India) Limited
3,251.80
811.42
33.25%
Sterling Tools Limited Corporate Events
Sterling Tools Shareholders Clear Appointment of Whole Time Director via Postal Ballot
Jun 27, 2026
Sterling Tools Limited has announced that shareholders have approved a special resolution via postal ballot and remote e-voting to appoint Mr. Anish Agarwal as Whole Time Director, including authorization for his remuneration package. The resoluti...
Sterling Tools Closes Trading Window Ahead of Q1 FY27 Results
Jun 26, 2026
Sterling Tools Limited has notified stock exchanges that it will close its trading window for company securities from July 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and its own internal code of conduct. The blac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.