New Risk • May 18
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.5% Last year net profit margin: 5.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (dividend per share is over 6x cash flows per share). Share price has been volatile over the past 3 months (9.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (₹8.94b market cap, or US$93.2m). Buy Or Sell Opportunity • May 11
Now 23% undervalued Over the last 90 days, the stock has risen 5.2% to ₹251. The fair value is estimated to be ₹326, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years, while earnings per share has been flat. Aankondiging • May 09
Sterling Tools Limited to Report Q4, 2026 Results on May 15, 2026 Sterling Tools Limited announced that they will report Q4, 2026 results at 12:15 PM, Indian Standard Time on May 15, 2026 Buy Or Sell Opportunity • Apr 23
Now 21% undervalued Over the last 90 days, the stock has risen 12% to ₹256. The fair value is estimated to be ₹325, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years, while earnings per share has been flat. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹201, the stock trades at a trailing P/E ratio of 20.1x. Average trailing P/E is 28x in the Auto Components industry in India. Total loss to shareholders of 53% over the past three years. New Risk • Apr 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.0% average weekly change). Market cap is less than US$100m (₹6.62b market cap, or US$70.9m). Buy Or Sell Opportunity • Feb 04
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to ₹242. The fair value is estimated to be ₹309, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last 3 years, while earnings per share has been flat. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹259, the stock trades at a trailing P/E ratio of 19.3x. Average forward P/E is 26x in the Auto Components industry in India. Total loss to shareholders of 26% over the past three years. Aankondiging • Jan 27
Sterling Tools Limited to Report Q3, 2026 Results on Feb 03, 2026 Sterling Tools Limited announced that they will report Q3, 2026 results on Feb 03, 2026 New Risk • Jan 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₹9.08b (US$100.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₹9.08b market cap, or US$100.0m). Reported Earnings • Nov 12
Second quarter 2026 earnings released: EPS: ₹4.75 (vs ₹4.85 in 2Q 2025) Second quarter 2026 results: EPS: ₹4.75 (down from ₹4.85 in 2Q 2025). Revenue: ₹2.11b (down 26% from 2Q 2025). Net income: ₹171.9m (down 1.6% from 2Q 2025). Profit margin: 8.1% (up from 6.2% in 2Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 6% per year. Aankondiging • Nov 11
Sterling Tools Limited Appoints Roney John as Chief Manufacturing Officer, with Effect from 11 November 2025 The board of directors of Sterling Tools Limited at its meeting held on 11th November 2025, approved the appointment of Mr. Roney John, as Chief Manufacturing Officer (Senior Management Personnel) of the Company with effect from 11th November 2025. Mr. Roney John is a senior professional with over 30 years of comprehensive experience in the areas of Manufacturing Operations. Mr. Roney holds a Bachelor's Degree in Industrial & Production Engineering from Siddaganga Institute of Technology (1995). He has worked with leading organizations such as Mahindra CIE Automotive Limited, where he served as Chief Operating Officer - Gears Division (Pune & Rajkot) for 16 years. Mr. Roney's prior professional journey also includes leadership roles at Sar Auto Products Ltd., Amul Industries Ltd. and HMT Ltd. In his most recent role, Mr. Roney John was associated with Endurance Technologies Ltd. as Vice President - Operations (Castings & Suspension Division). Aankondiging • Nov 04
Sterling Tools Limited to Report Q2, 2026 Results on Nov 11, 2025 Sterling Tools Limited announced that they will report Q2, 2026 results on Nov 11, 2025 Upcoming Dividend • Sep 11
Upcoming dividend of ₹2.50 per share Eligible shareholders must have bought the stock before 18 September 2025. Payment date: 25 October 2025. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Indian dividend payers (1.2%). In line with average of industry peers (0.6%). Declared Dividend • Aug 09
Dividend increased to ₹2.50 Dividend of ₹2.50 is 25% higher than last year. Ex-date: 4th September 2025 Payment date: 13th October 2025 Dividend yield will be 0.8%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 31% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: ₹2.48 (vs ₹5.11 in 1Q 2025) First quarter 2026 results: EPS: ₹2.48 (down from ₹5.11 in 1Q 2025). Revenue: ₹1.95b (down 31% from 1Q 2025). Net income: ₹89.9m (down 51% from 1Q 2025). Profit margin: 4.6% (down from 6.5% in 1Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Aankondiging • Aug 02
Sterling Tools Limited to Report Q1, 2026 Results on Aug 07, 2025 Sterling Tools Limited announced that they will report Q1, 2026 results on Aug 07, 2025 Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹373, the stock trades at a trailing P/E ratio of 23.1x. Average trailing P/E is 31x in the Auto Components industry in India. Total returns to shareholders of 70% over the past three years. Buy Or Sell Opportunity • May 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to ₹317. The fair value is estimated to be ₹398, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 23%. Reported Earnings • May 14
Full year 2025 earnings released: EPS: ₹16.17 (vs ₹15.37 in FY 2024) Full year 2025 results: EPS: ₹16.17 (up from ₹15.37 in FY 2024). Revenue: ₹10.4b (up 11% from FY 2024). Net income: ₹582.9m (up 5.3% from FY 2024). Profit margin: 5.6% (down from 5.9% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • May 10
Sterling Tools Limited to Report Q4, 2025 Results on May 13, 2025 Sterling Tools Limited announced that they will report Q4, 2025 results on May 13, 2025 Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹357, the stock trades at a trailing P/E ratio of 19.6x. Average trailing P/E is 28x in the Auto Components industry in India. Total returns to shareholders of 156% over the past three years. Aankondiging • Mar 13
Sterling Tools Limited Announces Resignation of Abhishek Chawla as Company Secretary and Compliance Officer Sterling Tools Limited announced that Mr. Abhishek Chawla, Company Secretary (Key Managerial Personnel) and Compliance Officer of the Company, has ceased to be in such capacity with effect from the closure of business hours of March 13, 2025, pursuant to the resignation tendered by him to pursue an alternate career opportunity outside the Organization. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₹399, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 152% over the past three years. Reported Earnings • Feb 05
Third quarter 2025 earnings released: EPS: ₹3.78 (vs ₹3.77 in 3Q 2024) Third quarter 2025 results: EPS: ₹3.78 (up from ₹3.77 in 3Q 2024). Revenue: ₹2.63b (up 13% from 3Q 2024). Net income: ₹136.0m (flat on 3Q 2024). Profit margin: 5.2% (down from 5.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • Feb 04
Sterling Tools Limited Announces Resignation of Abhishek Chawla as Company Secretary & Compliance Officer (Key Managerial Personnel), Effective 13th March, 2025 Sterling Tools Limited announced that Mr. Abhishek Chawla, Company Secretary & Compliance Officer (Key Managerial Personnel) of the Company has tendered his resignation from the position of Company Secretary & Compliance Officer (Key Managerial Personnel) with effect from close of business hour on 13th March, 2025, at its board of directors meeting held on 04th February, 2025. Reason for change: To pursue an alternate career opportunity outside the Organization. Aankondiging • Jan 30
Sterling Tools Limited to Report Q3, 2025 Results on Feb 04, 2025 Sterling Tools Limited announced that they will report Q3, 2025 results on Feb 04, 2025 Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₹452, the stock trades at a trailing P/E ratio of 24.8x. Average trailing P/E is 29x in the Auto Components industry in India. Total returns to shareholders of 153% over the past three years. Recent Insider Transactions • Dec 07
Managing Director recently sold ₹41m worth of stock On the 4th of December, Atul Aggarwal sold around 58k shares on-market at roughly ₹705 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₹672, the stock trades at a trailing P/E ratio of 36.9x. Average forward P/E is 27x in the Auto Components industry in India. Total returns to shareholders of 276% over the past three years. Reported Earnings • Nov 16
Second quarter 2025 earnings released: EPS: ₹4.85 (vs ₹3.46 in 2Q 2024) Second quarter 2025 results: EPS: ₹4.85 (up from ₹3.46 in 2Q 2024). Revenue: ₹2.86b (up 36% from 2Q 2024). Net income: ₹174.7m (up 40% from 2Q 2024). Profit margin: 6.1% (up from 5.9% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 06
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.3% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Valuation Update With 7 Day Price Move • Sep 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹601, the stock trades at a trailing P/E ratio of 35.7x. Average trailing P/E is 34x in the Auto Components industry in India. Total returns to shareholders of 209% over the past three years. New Risk • Sep 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.0% average weekly change). Declared Dividend • Aug 24
Dividend of ₹2.00 announced Dividend of ₹2.00 is the same as last year. Ex-date: 6th September 2024 Payment date: 13th October 2024 Dividend yield will be 0.4%, which is lower than the industry average of 0.6%. Sustainability & Growth Dividend is well covered by both earnings (13% earnings payout ratio) and cash flows (10% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 14
First quarter 2025 earnings released: EPS: ₹5.11 (vs ₹3.63 in 1Q 2024) First quarter 2025 results: EPS: ₹5.11 (up from ₹3.63 in 1Q 2024). Revenue: ₹2.84b (up 29% from 1Q 2024). Net income: ₹184.1m (up 41% from 1Q 2024). Profit margin: 6.5% (up from 5.9% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 25% per year. Aankondiging • Aug 13
Sterling Tools Limited, Annual General Meeting, Sep 13, 2024 Sterling Tools Limited, Annual General Meeting, Sep 13, 2024. Aankondiging • May 15
Sterling Tools Limited Announces Executive Changes Sterling Tools Ltd. has named Atul Aggarwal as its new managing director. In the new role, Aggarwal is also a whole-time director and will spearhead the company's diversification and growth in emerging verticals. He will provide overall guidance and mentorship for the company. The company has also named Akhill Aggarwal as a whole-time director. In the new role, Aggarwal will be responsible for the company's sales and business development functions and head initiatives to increase market share and margins. Reported Earnings • May 12
Full year 2024 earnings released: EPS: ₹15.37 (vs ₹13.29 in FY 2023) Full year 2024 results: EPS: ₹15.37 (up from ₹13.29 in FY 2023). Revenue: ₹9.39b (up 22% from FY 2023). Net income: ₹553.7m (up 16% from FY 2023). Profit margin: 5.9% (down from 6.2% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 25% per year. Aankondiging • May 11
Sterling Tools Limited Recommends Final Dividend for the Financial Year 2023-24 Sterling Tools Limited recommended the Final Dividend of 100% i.e., INR 2/- (Rupees Two only) per equity share of Face Value of INR 2/- (Rupees Two only) each fully paid up for the Financial Year 2023-24, subject to the approval of shareholders of the Company in the upcoming Annual General Meeting. Aankondiging • May 05
Sterling Tools Limited to Report Q4, 2024 Results on May 10, 2024 Sterling Tools Limited announced that they will report Q4, 2024 results on May 10, 2024 Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹353, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 26x in the Auto Components industry in India. Total returns to shareholders of 79% over the past three years. Reported Earnings • Feb 02
Third quarter 2024 earnings released: EPS: ₹3.77 (vs ₹3.86 in 3Q 2023) Third quarter 2024 results: EPS: ₹3.77 (down from ₹3.86 in 3Q 2023). Revenue: ₹2.34b (up 13% from 3Q 2023). Net income: ₹135.8m (down 2.4% from 3Q 2023). Profit margin: 5.8% (down from 6.7% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 21% per year. Aankondiging • Jan 25
Sterling Tools Limited to Report Q3, 2024 Results on Feb 01, 2024 Sterling Tools Limited announced that they will report Q3, 2024 results on Feb 01, 2024 Reported Earnings • Nov 04
Second quarter 2024 earnings released: EPS: ₹3.46 (vs ₹4.61 in 2Q 2023) Second quarter 2024 results: EPS: ₹3.46 (down from ₹4.61 in 2Q 2023). Revenue: ₹2.10b (up 18% from 2Q 2023). Net income: ₹124.6m (down 25% from 2Q 2023). Profit margin: 5.9% (down from 9.3% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 24% per year. Aankondiging • Oct 31
Sterling Tools Limited Announces Appointment of Akhil Aggarwal as Member of Risk Management Committee Sterling Tools Limited at its board meeting held on October 30, 2023 appointed Akhil Aggarwal as member of risk management committee. Composition of committee: Mr. Anil Aggarwal as Chairman and Mr. Rakesh Batra, Mr. Atul Aggarwal, Mr. Akhil Aggarwal, Mr. Jaideep Wadhwa and Mr. Pankaj Gupta as members of committee. Aankondiging • Oct 24
Sterling Tools Limited to Report Q2, 2024 Results on Oct 30, 2023 Sterling Tools Limited announced that they will report Q2, 2024 results on Oct 30, 2023 Upcoming Dividend • Sep 04
Upcoming dividend of ₹2.00 per share at 0.5% yield Eligible shareholders must have bought the stock before 11 September 2023. Payment date: 18 October 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 0.5%. Lower than top quartile of Indian dividend payers (1.4%). Lower than average of industry peers (0.8%). Reported Earnings • Aug 03
First quarter 2024 earnings released: EPS: ₹3.63 (vs ₹2.66 in 1Q 2023) First quarter 2024 results: EPS: ₹3.63 (up from ₹2.66 in 1Q 2023). Revenue: ₹2.21b (up 27% from 1Q 2023). Net income: ₹130.7m (up 36% from 1Q 2023). Profit margin: 5.9% (up from 5.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Auto Components industry in India. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Aankondiging • Aug 03
Sterling Tools Limited, Annual General Meeting, Sep 18, 2023 Sterling Tools Limited, Annual General Meeting, Sep 18, 2023. Location: Unit No-515, DLF Tower A, Jasola District Centre New Delhi India Aankondiging • Jul 28
Sterling Tools Limited to Report Q1, 2024 Results on Aug 02, 2023 Sterling Tools Limited announced that they will report Q1, 2024 results on Aug 02, 2023 Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₹348, the stock trades at a trailing P/E ratio of 26.2x. Average trailing P/E is 23x in the Auto Components industry in India. Total returns to shareholders of 186% over the past three years. Reported Earnings • May 09
Full year 2023 earnings released: EPS: ₹13.29 (vs ₹7.09 in FY 2022) Full year 2023 results: EPS: ₹13.29 (up from ₹7.09 in FY 2022). Revenue: ₹7.75b (up 52% from FY 2022). Net income: ₹478.8m (up 88% from FY 2022). Profit margin: 6.2% (up from 5.0% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 03
Third quarter 2023 earnings released: EPS: ₹3.86 (vs ₹1.52 in 3Q 2022) Third quarter 2023 results: EPS: ₹3.86 (up from ₹1.52 in 3Q 2022). Revenue: ₹2.08b (up 71% from 3Q 2022). Net income: ₹139.2m (up 155% from 3Q 2022). Profit margin: 6.7% (up from 4.5% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 17% per year. Board Change • Jan 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 5 highly experienced directors. Non-Executive Independent Director Rakesh Batra was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₹235, the stock trades at a trailing P/E ratio of 21.9x. Average trailing P/E is 24x in the Auto Components industry in India. Total returns to shareholders of 4.8% over the past three years. Price Target Changed • Nov 16
Price target increased to ₹309 Up from ₹250, the current price target is provided by 1 analyst. New target price is 20% above last closing price of ₹258. Stock is up 34% over the past year. The company posted earnings per share of ₹7.09 last year. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: ₹4.61 (vs ₹2.79 in 2Q 2022) Second quarter 2023 results: EPS: ₹4.61 (up from ₹2.79 in 2Q 2022). Revenue: ₹1.79b (up 40% from 2Q 2022). Net income: ₹166.0m (up 65% from 2Q 2022). Profit margin: 9.3% (up from 7.9% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 14% per year. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improved over the past week After last week's 16% share price gain to ₹255, the stock trades at a trailing P/E ratio of 28.6x. Average trailing P/E is 24x in the Auto Components industry in India. Total returns to shareholders of 38% over the past three years. Upcoming Dividend • Sep 07
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 22 October 2022. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of Indian dividend payers (1.6%). In line with average of industry peers (0.6%). Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: ₹2.66 (vs ₹0.87 in 1Q 2022) First quarter 2023 results: EPS: ₹2.66 (up from ₹0.87 in 1Q 2022). Revenue: ₹1.75b (up 96% from 1Q 2022). Net income: ₹95.8m (up 206% from 1Q 2022). Profit margin: 5.5% (up from 3.5% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₹256, the stock trades at a trailing P/E ratio of 36.1x. Average trailing P/E is 24x in the Auto Components industry in India. Total returns to shareholders of 31% over the past three years. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improved over the past week After last week's 19% share price gain to ₹261, the stock trades at a trailing P/E ratio of 33.5x. Average trailing P/E is 21x in the Auto Components industry in India. Total returns to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improved over the past week After last week's 21% share price gain to ₹170, the stock trades at a trailing P/E ratio of 23.2x. Average trailing P/E is 23x in the Auto Components industry in India. Total loss to shareholders of 25% over the past three years. Reported Earnings • May 20
Full year 2022 earnings released: EPS: ₹7.09 (vs ₹6.53 in FY 2021) Full year 2022 results: EPS: ₹7.09 (up from ₹6.53 in FY 2021). Revenue: ₹5.13b (up 45% from FY 2021). Net income: ₹255.4m (up 8.6% from FY 2021). Profit margin: 5.0% (down from 6.7% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year and the company’s share price has also fallen by 10% per year. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₹123, the stock trades at a trailing P/E ratio of 15.5x. Average trailing P/E is 21x in the Auto Components industry in India. Total loss to shareholders of 45% over the past three years. Price Target Changed • Apr 27
Price target decreased to ₹224 Down from ₹275, the current price target is provided by 1 analyst. New target price is 44% above last closing price of ₹155. Stock is down 17% over the past year. The company posted earnings per share of ₹6.53 last year.