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Sterling Tools NSEI:STERTOOLS Stock Report

Last Price

₹272.80

Market Cap

₹9.8b

7D

14.4%

1Y

49.4%

Updated

29 Jun, 2022

Data

Company Financials
STERTOOLS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends1/6

STERTOOLS Stock Overview

Sterling Tools Limited manufactures and markets high tensile cold forged fasteners to original equipment manufacturers in India.

Sterling Tools Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sterling Tools
Historical stock prices
Current Share Price₹272.80
52 Week High₹298.00
52 Week Low₹115.00
Beta0.94
1 Month Change57.14%
3 Month Change101.11%
1 Year Change49.44%
3 Year Change30.09%
5 Year Change-2.74%
Change since IPO823.18%

Recent News & Updates

Jun 06
These 4 Measures Indicate That Sterling Tools (NSE:STERTOOLS) Is Using Debt Reasonably Well

These 4 Measures Indicate That Sterling Tools (NSE:STERTOOLS) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

STERTOOLSIN Auto ComponentsIN Market
7D14.4%7.7%3.0%
1Y49.4%-5.8%0.3%

Return vs Industry: STERTOOLS exceeded the Indian Auto Components industry which returned -5.5% over the past year.

Return vs Market: STERTOOLS exceeded the Indian Market which returned 0.6% over the past year.

Price Volatility

Is STERTOOLS's price volatile compared to industry and market?
STERTOOLS volatility
STERTOOLS Average Weekly Movement10.1%
Auto Components Industry Average Movement6.1%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: STERTOOLS is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: STERTOOLS's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

FoundedEmployeesCEOWebsite
1979571Anil Aggarwalhttps://www.stlfasteners.com

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.

Sterling Tools Fundamentals Summary

How do Sterling Tools's earnings and revenue compare to its market cap?
STERTOOLS fundamental statistics
Market Cap₹9.85b
Earnings (TTM)₹255.37m
Revenue (TTM)₹5.10b

38.6x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STERTOOLS income statement (TTM)
Revenue₹5.10b
Cost of Revenue₹3.03b
Gross Profit₹2.07b
Other Expenses₹1.82b
Earnings₹255.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.09
Gross Margin40.63%
Net Profit Margin5.01%
Debt/Equity Ratio30.8%

How did STERTOOLS perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is STERTOOLS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STERTOOLS?

Other financial metrics that can be useful for relative valuation.

STERTOOLS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA16x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does STERTOOLS's PE Ratio compare to its peers?

STERTOOLS PE Ratio vs Peers
The above table shows the PE ratio for STERTOOLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average215.4x
517380 Igarashi Motors India
759.1xn/a₹9.0b
505800 Rane Holdings
36.6xn/a₹8.8b
531147 Alicon Castalloy
44.1x64.0%₹10.7b
539636 Precision Camshafts
21.6xn/a₹9.9b
STERTOOLS Sterling Tools
38.6xn/a₹9.8b

Price-To-Earnings vs Peers: STERTOOLS is good value based on its Price-To-Earnings Ratio (38.6x) compared to the peer average (215.4x).


Price to Earnings Ratio vs Industry

How does STERTOOLS's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: STERTOOLS is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the Indian Auto Components industry average (22.1x)


Price to Earnings Ratio vs Fair Ratio

What is STERTOOLS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STERTOOLS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate STERTOOLS's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of STERTOOLS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STERTOOLS (₹272.8) is trading above our estimate of fair value (₹9.52)

Significantly Below Fair Value: STERTOOLS is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate STERTOOLS's PEG Ratio to determine if it is good value.


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Future Growth

How is Sterling Tools forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.6%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sterling Tools has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Sterling Tools's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Sterling Tools competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Sterling Tools performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STERTOOLS has high quality earnings.

Growing Profit Margin: STERTOOLS's current net profit margins (5%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: STERTOOLS's earnings have declined by 12.6% per year over the past 5 years.

Accelerating Growth: STERTOOLS's earnings growth over the past year (8.6%) exceeds its 5-year average (-12.6% per year).

Earnings vs Industry: STERTOOLS earnings growth over the past year (8.6%) underperformed the Auto Components industry 33.8%.


Return on Equity

High ROE: STERTOOLS's Return on Equity (7.2%) is considered low.


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Financial Health

How is Sterling Tools's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: STERTOOLS's short term assets (₹2.4B) exceed its short term liabilities (₹1.2B).

Long Term Liabilities: STERTOOLS's short term assets (₹2.4B) exceed its long term liabilities (₹775.0M).


Debt to Equity History and Analysis

Debt Level: STERTOOLS's net debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: STERTOOLS's debt to equity ratio has increased from 25.1% to 30.8% over the past 5 years.

Debt Coverage: STERTOOLS's debt is well covered by operating cash flow (36.8%).

Interest Coverage: STERTOOLS's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


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Dividend

What is Sterling Tools's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: STERTOOLS's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: STERTOOLS's dividend (0.37%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).


Stability and Growth of Payments

Stable Dividend: STERTOOLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: STERTOOLS's dividend payments have not increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.1%), STERTOOLS's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: STERTOOLS is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average board tenure


CEO

Anil Aggarwal (63 yo)

3.08yrs

Tenure

₹15,420,576

Compensation

Mr. Anil Aggarwal serves as Chief Executive Officer and Managing Director of Sterling Tools Limited since May 23, 2019, Executive Director since September 30, 1994 and serves as its Chairman. Mr. Aggarwal...


CEO Compensation Analysis

Compensation vs Market: Anil's total compensation ($USD195.18K) is above average for companies of similar size in the Indian market ($USD38.25K).

Compensation vs Earnings: Anil's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: STERTOOLS's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sterling Tools Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sterling Tools Limited
  • Ticker: STERTOOLS
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: ₹9.849b
  • Shares outstanding: 36.02m
  • Website: https://www.stlfasteners.com

Number of Employees


Location

  • Sterling Tools Limited
  • Plot No. 4
  • 5-A DLF Industrial Estate
  • Faridabad
  • Haryana
  • 121003
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.