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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Sterling Tools Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 9:37 pm

Market Cap 2,171 Cr.
Current Price 601
High / Low 744/304
Stock P/E33.0
Book Value 133
Dividend Yield0.33 %
ROCE14.7 %
ROE12.9 %
Face Value 2.00
PEG Ratio2.61

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Sterling Tools Ltd

Competitors of Sterling Tools Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sterling Tools Ltd 2,171 Cr. 601 744/30433.0 1330.33 %14.7 %12.9 % 2.00
Lakshmi Precision Screws Ltd 6.96 Cr. 6.36 7.42/3.70 23.60.00 %0.29 %84.5 % 10.0
Industry Average2,171.00 Cr303.6833.0078.300.17%7.50%48.70%6.00

All Competitor Stocks of Sterling Tools Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales12789128122169174179208212221210232269
Expenses10678108106152152154180189195185206238
Operating Profit21112116172225282225252631
OPM %16%13%16%13%10%13%14%14%11%12%12%11%11%
Other Income01111171-22221
Interest2222222222322
Depreciation7777788888888
Profit before tax12413891322181017161821
Tax %14%26%25%32%25%26%24%25%22%23%24%22%24%
Net Profit1131057101714813121416
EPS in Rs2.920.872.801.521.912.664.613.862.163.633.463.774.51

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales372371453512364355510772932
Expenses311295362426304293444674824
Operating Profit6176918660626698108
OPM %16%20%20%17%17%17%13%13%12%
Other Income176762367
Interest664468799
Depreciation131718192426273233
Profit before tax436075703630356372
Tax %35%35%35%35%15%23%27%24%23%
Net Profit283949453024264855
EPS in Rs8.2011.4313.6212.528.476.537.0913.2915.37
Dividend Payout %37%17%7%16%24%15%14%15%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)39.29%25.64%-8.16%-33.33%-20.00%8.33%84.62%14.58%
Change in YoY Net Profit Growth (%)0.00%-13.64%-33.80%-25.17%13.33%28.33%76.28%-70.03%

Sterling Tools Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:38%
TTM:25%
Compounded Profit Growth
10 Years:%
5 Years:4%
3 Years:31%
TTM:34%
Stock Price CAGR
10 Years:24%
5 Years:22%
3 Years:51%
1 Year:75%
Return on Equity
10 Years:%
5 Years:10%
3 Years:11%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:35 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7777777777
Reserves122153237273299324349393440473
Borrowings6940349975105126133118136
Other Liabilities48677278637983122145148
Total Liabilities246267351458444516565656710764
Fixed Assets139165159192263257280275278283
CWIP10104710111711
Investments015656172623201214
Other Assets107101126163163233260349414456
Total Assets246267351458444516565656710764

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5659474353162563102
Cash from Investing Activity +-26-25-75-922-49-39-53-49
Cash from Financing Activity +-21-422652-422310-6-33
Net Cash Flow9-8-1312-11-4420

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.0036.0057.00-13.00-15.00-43.00-60.00-35.00-10.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days363437292843453835
Inventory Days105125118146158330189153133
Days Payable697879585692525556
Cash Conversion Cycle728176117130281182137112
Working Capital Days43435162831471259173
ROCE %31%32%22%11%9%9%13%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%
FIIs0.04%0.00%0.01%0.01%0.01%0.06%0.03%0.01%0.01%0.01%0.05%0.12%
DIIs6.56%6.56%6.60%5.93%5.33%5.43%5.56%5.71%5.68%5.49%5.49%4.74%
Public27.63%27.67%27.62%28.30%28.90%28.73%28.65%28.52%28.55%28.74%28.69%29.38%
No. of Shareholders17,75218,02116,91317,46816,08318,11119,48321,32424,34130,75029,80632,583

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan1,677,7590.4559.89160,0002024-12-22948.6%
HDFC Retirement Savings Fund - Hybrid Equity - Regular Plan160,0000.455.71160,0002024-12-220%
HDFC Retirement Savings Fund - Hybrid Debt - Regular Plan10,0000.260.4160,0002024-12-22-93.75%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)15.3713.297.096.538.47
Diluted EPS (Rs.)15.3513.297.096.538.47
Cash EPS (Rs.)24.5422.0914.8513.9915.36
Book Value[Excl.RevalReserv]/Share (Rs.)124.11111.1698.7692.0285.08
Book Value[Incl.RevalReserv]/Share (Rs.)124.11111.1698.7692.0285.08
Revenue From Operations / Share (Rs.)258.71214.30141.4698.03101.11
PBDIT / Share (Rs.)31.7327.8819.3217.9918.62
PBIT / Share (Rs.)22.5619.0811.7310.6711.90
PBT / Share (Rs.)20.0417.589.828.5610.16
Net Profit / Share (Rs.)15.3713.297.266.678.63
NP After MI And SOA / Share (Rs.)15.3713.297.096.538.47
PBDIT Margin (%)12.2613.0113.6518.3518.41
PBIT Margin (%)8.718.908.2910.8811.76
PBT Margin (%)7.748.206.948.7310.04
Net Profit Margin (%)5.946.205.136.808.53
NP After MI And SOA Margin (%)5.946.205.016.658.37
Return on Networth / Equity (%)12.3811.957.177.099.95
Return on Capital Employeed (%)15.7714.609.759.4511.00
Return On Assets (%)7.767.284.644.556.86
Long Term Debt / Equity (X)0.070.090.110.110.15
Total Debt / Equity (X)0.250.330.300.260.17
Asset Turnover Ratio (%)1.361.280.880.730.80
Current Ratio (X)2.041.842.062.122.78
Quick Ratio (X)1.140.961.061.121.70
Inventory Turnover Ratio (X)2.922.861.821.621.74
Dividend Payout Ratio (NP) (%)0.007.5214.100.0023.61
Dividend Payout Ratio (CP) (%)0.004.526.810.0013.16
Earning Retention Ratio (%)0.0092.4885.900.0076.39
Cash Earning Retention Ratio (%)0.0095.4893.190.0086.84
Interest Coverage Ratio (X)12.0811.3710.138.5310.71
Interest Coverage Ratio (Post Tax) (X)6.816.034.814.165.97
Enterprise Value (Cr.)1114.071525.68575.61758.95506.40
EV / Net Operating Revenue (X)1.201.981.132.151.39
EV / EBITDA (X)9.7515.198.2711.717.55
MarketCap / Net Operating Revenue (X)1.181.880.961.991.29
Retention Ratios (%)0.0092.4785.890.0076.38
Price / BV (X)2.473.621.382.121.53
Price / Net Operating Revenue (X)1.181.880.961.991.29
EarningsYield0.050.030.050.030.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sterling Tools Ltd as of December 26, 2024 is: 568.05

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Sterling Tools Ltd is Overvalued by 5.48% compared to the current share price 601.00

Intrinsic Value of Sterling Tools Ltd as of December 26, 2024 is: 639.95

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Sterling Tools Ltd is Undervalued by 6.48% compared to the current share price 601.00

Last 5 Year EPS CAGR: 12.66%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.78%, which is a positive sign.
  2. The company has higher reserves (306.30 cr) compared to borrowings (93.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (515.67 cr) and profit (53.78 cr) over the years.
  1. The stock has a high average Working Capital Days of 79.78, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 132.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sterling Tools Ltd:
    1. Net Profit Margin: 5.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.77% (Industry Average ROCE: 7.5%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.38% (Industry Average ROE: 48.7%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.81
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.14
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 33 (Industry average Stock P/E: 33)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Sterling Tools Ltd. is a Public Limited Listed company incorporated on 07/06/1979 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L29222DL1979PLC009668 and registration number is 009668. Currently Company is involved in the business activities of Manufacture of fabricated metal products, except machinery and equipment. Company’s Total Operating Revenue is Rs. 471.24 Cr. and Equity Capital is Rs. 7.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FastenersDJ-1210, 12th Floor, New Delhi Delhi 110025csec@stlfasteners.com
http://www.stlfasteners.com
Management
NamePosition Held
Mr. Anil AggarwalChairman
Mr. Atul AggarwalManaging Director
Mr. Akhill AggarwalWhole Time Director
Mr. Shailendra SwarupIndependent Director
Mr. Rakesh BatraIndependent Director
Ms. Rashmi UrdhwaresheIndependent Director
Mr. Sanjiv GargIndependent Director
Mr. Vijay Madhav ParadkarIndependent Director
Mr. Jaideep WadhwaDirector
Mr. Anish AgarwalDirector

FAQ

What is the latest intrinsic value of Sterling Tools Ltd?

The latest intrinsic value of Sterling Tools Ltd as on 26 December 2024 is ₹568.05, which is 5.48% lower than the current market price of ₹601.00. The stock has a market capitalization of 2,171 Cr. and recorded a high/low of 744/304 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹473 Cr and total liabilities of ₹764 Cr.

What is the Market Cap of Sterling Tools Ltd?

The Market Cap of Sterling Tools Ltd is 2,171 Cr..

What is the current Stock Price of Sterling Tools Ltd as on 26 December 2024?

The current stock price of Sterling Tools Ltd as on 26 December 2024 is 601.

What is the High / Low of Sterling Tools Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Sterling Tools Ltd stocks is 744/304.

What is the Stock P/E of Sterling Tools Ltd?

The Stock P/E of Sterling Tools Ltd is 33.0.

What is the Book Value of Sterling Tools Ltd?

The Book Value of Sterling Tools Ltd is 133.

What is the Dividend Yield of Sterling Tools Ltd?

The Dividend Yield of Sterling Tools Ltd is 0.33 %.

What is the ROCE of Sterling Tools Ltd?

The ROCE of Sterling Tools Ltd is 14.7 %.

What is the ROE of Sterling Tools Ltd?

The ROE of Sterling Tools Ltd is 12.9 %.

What is the Face Value of Sterling Tools Ltd?

The Face Value of Sterling Tools Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sterling Tools Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE