Sterling Tools share price today, August 19: Shares of Sterling Tools (STL) hit the upper circuit of 20 per cent at Rs 515.25 on the BSE on Monday amid heavy volumes on healthy business outlook. The stock of this auto ancillary company has surpassed its previous high of Rs 441 touched on July 9, 2024, data shows.
A combined 2.93 million equity shares representing 0.82 per cent of total equity of Sterling Tools changed hands on the NSE and BSE. There were pending buy orders for a combined 240,000 shares on these exchanges, the data shows.
Sterling Tools manufactures high tensile cold forged automotive fasteners, solutions catering to the passenger cars, two wheelers, commercial vehicles, agri-equipment and construction equipment segments.
It is the second largest automotive fastener manufacturer in the country and it’s 100 per cent owned subsidiary-Sterling Gtake E-Mobility Limited (SEGM) is the largest Motor Control Unit (MCU) manufacturer for the Electric Vehicle (EV) industry in India. The client portfolio comprises leading incumbent and start-up original equipment manufacturers (OEM).
In past one week, the Sterling Tools stock price has zoomed 34 per cent after the company reported strong results for the June 2024 quarter (Q1-FY25), with 40.9 per cent year-on-year (YoY) growth in profit after tax (PAT) at Rs 18.4 crore, as compared to Rs 13.1 crore in Q1-FY24. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin improved to 13.1 per cent in Q1FY25 as against 12.4 per cent in Q1FY24.
Revenue grew 27.3 per cent YoY at Rs 283.70 crore during the period under review, primarily driven by good demand in two-wheeler business and stable demand in passenger vehicle segment.
The Sterling Tools management said the company is focused on achieving higher revenue growth and it is well positioned to capture incremental market share going forward.
SGEM continues to gain traction with total income witnessing a growth of 62.7 per cent on a YoY basis. On the industry front, the demand for automobiles was a bit muted during Q1FY25. The EV 2-wheeler industry continues to gain momentum, and the cumulative sales stood at 182,050 units in Q1FY25. Hybrid PVs are getting more attention from OEs which aligns well with our EV focus, the management said.
First Published: Aug 19 2024 | 3:39 PM IST
