Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 12 March, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Sterling Tools Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: March 8, 2025, 10:45 am

Market Cap 1,288 Cr.
Current Price 356
High / Low 744/303
Stock P/E19.6
Book Value 133
Dividend Yield0.56 %
ROCE14.7 %
ROE12.9 %
Face Value 2.00
PEG Ratio0.86

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

View Share Price Target for Sterling Tools Ltd

Competitors of Sterling Tools Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Sterling Tools Ltd 1,288 Cr. 356 744/30319.6 1330.56 %14.7 %12.9 % 2.00
Lakshmi Precision Screws Ltd 5.59 Cr. 5.11 7.42/3.70 23.60.00 %0.29 %84.5 % 10.0
Industry Average1,288.00 Cr180.5619.6078.300.28%7.50%48.70%6.00

All Competitor Stocks of Sterling Tools Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 122169174179208212221210232269282284261
Expenses 106152152154180189195185206238250252234
Operating Profit 16172225282225252631323227
OPM % 13%10%13%14%14%11%12%12%11%11%11%11%10%
Other Income 11171-22221222
Interest 2222222222222
Depreciation 7788888888898
Profit before tax 891322181017161821242318
Tax % 32%25%26%24%25%22%23%24%22%24%23%24%23%
Net Profit 57101714813121416181714
EPS in Rs 1.521.912.664.613.862.163.633.463.774.515.114.853.78

Last Updated: February 28, 2025, 4:56 pm

Below is a detailed analysis of the quarterly data for Sterling Tools Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is ₹261.00 Cr.. The value appears to be declining and may need further review. It has decreased from 284.00 Cr. (Sep 2024) to ₹261.00 Cr., marking a decrease of 23.00 Cr..
  • For Expenses, as of Dec 2024, the value is ₹234.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 252.00 Cr. (Sep 2024) to ₹234.00 Cr., marking a decrease of 18.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is ₹27.00 Cr.. The value appears to be declining and may need further review. It has decreased from 32.00 Cr. (Sep 2024) to ₹27.00 Cr., marking a decrease of 5.00 Cr..
  • For OPM %, as of Dec 2024, the value is 10.00%. The value appears to be declining and may need further review. It has decreased from 11.00% (Sep 2024) to 10.00%, marking a decrease of 1.00%.
  • For Other Income, as of Dec 2024, the value is ₹2.00 Cr.. The value remains steady. There is no change compared to the previous period (Sep 2024) which recorded 2.00 Cr..
  • For Interest, as of Dec 2024, the value is ₹2.00 Cr.. The value remains steady. There is no change compared to the previous period (Sep 2024) which recorded 2.00 Cr..
  • For Depreciation, as of Dec 2024, the value is ₹8.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 9.00 Cr. (Sep 2024) to ₹8.00 Cr., marking a decrease of 1.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is ₹18.00 Cr.. The value appears to be declining and may need further review. It has decreased from 23.00 Cr. (Sep 2024) to ₹18.00 Cr., marking a decrease of 5.00 Cr..
  • For Tax %, as of Dec 2024, the value is 23.00%. The value appears to be improving (decreasing) as expected. It has decreased from 24.00% (Sep 2024) to 23.00%, marking a decrease of 1.00%.
  • For Net Profit, as of Dec 2024, the value is ₹14.00 Cr.. The value appears to be declining and may need further review. It has decreased from 17.00 Cr. (Sep 2024) to ₹14.00 Cr., marking a decrease of 3.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 3.78. The value appears to be declining and may need further review. It has decreased from ₹4.85 (Sep 2024) to 3.78, marking a decrease of ₹1.07.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 2:45 pm

MetricMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 3723714535123643555107729321,096
Expenses 311295362426304293444674824974
Operating Profit 6176918660626698108122
OPM % 16%20%20%17%17%17%13%13%12%11%
Other Income 1767623677
Interest 6644687999
Depreciation 13171819242627323333
Profit before tax 43607570363035637286
Tax % 35%35%35%35%15%23%27%24%23%
Net Profit 28394945302426485566
EPS in Rs 8.2011.4313.6212.528.476.537.0913.2915.3718.25
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:35%
Stock Price CAGR
10 Years:19%
5 Years:11%
3 Years:25%
1 Year:-7%
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 Capital 7777777777
Reserves 122153237273299324349393440473
Borrowings 6940349975105126133118136
Other Liabilities 48677278637983122145148
Total Liabilities 246267351458444516565656710764
Fixed Assets 139165159192263257280275278283
CWIP 10104710111711
Investments 015656172623201214
Other Assets 107101126163163233260349414456
Total Assets 246267351458444516565656710764

Below is a detailed analysis of the balance sheet data for Sterling Tools Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹7.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded ₹7.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹473.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹440.00 Cr. (Mar 2024) to ₹473.00 Cr., marking an increase of 33.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹136.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from ₹118.00 Cr. (Mar 2024) to ₹136.00 Cr., marking an increase of 18.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹148.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹145.00 Cr. (Mar 2024) to ₹148.00 Cr., marking an increase of 3.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹764.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from ₹710.00 Cr. (Mar 2024) to ₹764.00 Cr., marking an increase of 54.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹283.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹278.00 Cr. (Mar 2024) to ₹283.00 Cr., marking an increase of 5.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹11.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹7.00 Cr. (Mar 2024) to ₹11.00 Cr., marking an increase of 4.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹14.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹12.00 Cr. (Mar 2024) to ₹14.00 Cr., marking an increase of 2.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹456.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹414.00 Cr. (Mar 2024) to ₹456.00 Cr., marking an increase of 42.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹764.00 Cr.. The value appears strong and on an upward trend. It has increased from ₹710.00 Cr. (Mar 2024) to ₹764.00 Cr., marking an increase of 54.00 Cr..

Notably, the Reserves (₹473.00 Cr.) exceed the Borrowings (136.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

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

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.77%65.31%
FIIs0.00%0.01%0.01%0.01%0.06%0.03%0.01%0.01%0.01%0.05%0.12%0.22%
DIIs6.56%6.60%5.93%5.33%5.43%5.56%5.71%5.68%5.49%5.49%4.74%4.24%
Public27.67%27.62%28.30%28.90%28.73%28.65%28.52%28.55%28.74%28.69%29.38%30.24%
No. of Shareholders18,02116,91317,46816,08318,11119,48321,32424,34130,75029,80632,58339,185

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 Plan1,677,7590.4559.89160,0002025-03-10948.6%
HDFC Retirement Savings Fund - Hybrid Equity - Regular Plan160,0000.455.71160,0002025-03-100%
HDFC Retirement Savings Fund - Hybrid Debt - Regular Plan10,0000.260.4160,0002025-03-10-93.75%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 2.002.002.002.002.00
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
EarningsYield 0.050.030.050.030.06

After reviewing the key financial ratios for Sterling Tools Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 15.37. This value is within the healthy range. It has increased from 13.29 (Mar 23) to 15.37, marking an increase of 2.08.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 15.35. This value is within the healthy range. It has increased from 13.29 (Mar 23) to 15.35, marking an increase of 2.06.
  • For Cash EPS (Rs.), as of Mar 24, the value is 24.54. This value is within the healthy range. It has increased from 22.09 (Mar 23) to 24.54, marking an increase of 2.45.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 124.11. It has increased from 111.16 (Mar 23) to 124.11, marking an increase of 12.95.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 124.11. It has increased from 111.16 (Mar 23) to 124.11, marking an increase of 12.95.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 258.71. It has increased from 214.30 (Mar 23) to 258.71, marking an increase of 44.41.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 31.73. This value is within the healthy range. It has increased from 27.88 (Mar 23) to 31.73, marking an increase of 3.85.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 22.56. This value is within the healthy range. It has increased from 19.08 (Mar 23) to 22.56, marking an increase of 3.48.
  • For PBT / Share (Rs.), as of Mar 24, the value is 20.04. This value is within the healthy range. It has increased from 17.58 (Mar 23) to 20.04, marking an increase of 2.46.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 15.37. This value is within the healthy range. It has increased from 13.29 (Mar 23) to 15.37, marking an increase of 2.08.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 15.37. This value is within the healthy range. It has increased from 13.29 (Mar 23) to 15.37, marking an increase of 2.08.
  • For PBDIT Margin (%), as of Mar 24, the value is 12.26. This value is within the healthy range. It has decreased from 13.01 (Mar 23) to 12.26, marking a decrease of 0.75.
  • For PBIT Margin (%), as of Mar 24, the value is 8.71. This value is below the healthy minimum of 10. It has decreased from 8.90 (Mar 23) to 8.71, marking a decrease of 0.19.
  • For PBT Margin (%), as of Mar 24, the value is 7.74. This value is below the healthy minimum of 10. It has decreased from 8.20 (Mar 23) to 7.74, marking a decrease of 0.46.
  • For Net Profit Margin (%), as of Mar 24, the value is 5.94. This value is within the healthy range. It has decreased from 6.20 (Mar 23) to 5.94, marking a decrease of 0.26.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 5.94. This value is below the healthy minimum of 8. It has decreased from 6.20 (Mar 23) to 5.94, marking a decrease of 0.26.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 12.38. This value is below the healthy minimum of 15. It has increased from 11.95 (Mar 23) to 12.38, marking an increase of 0.43.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 15.77. This value is within the healthy range. It has increased from 14.60 (Mar 23) to 15.77, marking an increase of 1.17.
  • For Return On Assets (%), as of Mar 24, the value is 7.76. This value is within the healthy range. It has increased from 7.28 (Mar 23) to 7.76, marking an increase of 0.48.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.07. This value is below the healthy minimum of 0.2. It has decreased from 0.09 (Mar 23) to 0.07, marking a decrease of 0.02.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.25. This value is within the healthy range. It has decreased from 0.33 (Mar 23) to 0.25, marking a decrease of 0.08.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 1.36. It has increased from 1.28 (Mar 23) to 1.36, marking an increase of 0.08.
  • For Current Ratio (X), as of Mar 24, the value is 2.04. This value is within the healthy range. It has increased from 1.84 (Mar 23) to 2.04, marking an increase of 0.20.
  • For Quick Ratio (X), as of Mar 24, the value is 1.14. This value is within the healthy range. It has increased from 0.96 (Mar 23) to 1.14, marking an increase of 0.18.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 2.92. This value is below the healthy minimum of 4. It has increased from 2.86 (Mar 23) to 2.92, marking an increase of 0.06.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 7.52 (Mar 23) to 0.00, marking a decrease of 7.52.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 4.52 (Mar 23) to 0.00, marking a decrease of 4.52.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 92.48 (Mar 23) to 0.00, marking a decrease of 92.48.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 95.48 (Mar 23) to 0.00, marking a decrease of 95.48.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 12.08. This value is within the healthy range. It has increased from 11.37 (Mar 23) to 12.08, marking an increase of 0.71.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 6.81. This value is within the healthy range. It has increased from 6.03 (Mar 23) to 6.81, marking an increase of 0.78.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 1,114.07. It has decreased from 1,525.68 (Mar 23) to 1,114.07, marking a decrease of 411.61.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 1.20. This value is within the healthy range. It has decreased from 1.98 (Mar 23) to 1.20, marking a decrease of 0.78.
  • For EV / EBITDA (X), as of Mar 24, the value is 9.75. This value is within the healthy range. It has decreased from 15.19 (Mar 23) to 9.75, marking a decrease of 5.44.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 1.18. This value is within the healthy range. It has decreased from 1.88 (Mar 23) to 1.18, marking a decrease of 0.70.
  • For Retention Ratios (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 30. It has decreased from 92.47 (Mar 23) to 0.00, marking a decrease of 92.47.
  • For Price / BV (X), as of Mar 24, the value is 2.47. This value is within the healthy range. It has decreased from 3.62 (Mar 23) to 2.47, marking a decrease of 1.15.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 1.18. This value is within the healthy range. It has decreased from 1.88 (Mar 23) to 1.18, marking a decrease of 0.70.
  • For EarningsYield, as of Mar 24, the value is 0.05. This value is below the healthy minimum of 5. It has increased from 0.03 (Mar 23) to 0.05, marking an increase of 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sterling Tools Ltd as of March 12, 2025 is: ₹270.53

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 March 12, 2025, Sterling Tools Ltd is Overvalued by 24.01% compared to the current share price 356.00

Intrinsic Value of Sterling Tools Ltd as of March 12, 2025 is: 332.27

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 March 12, 2025, Sterling Tools Ltd is Overvalued by 6.67% compared to the current share price 356.00

Last 5 Year EPS CAGR: 22.82%

*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 (464.20 cr) and profit (57.00 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: 19.6 (Industry average Stock P/E: 19.6)
      • 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 metal fasteners (nails, rivets, tacks, pins, staples, washers and similar non-threaded products and nuts, bolts, screws and other threaded products). Company's Total Operating Revenue is Rs. 608.14 Cr. and Equity Capital is Rs. 7.20 Cr. for the Year ended 31/03/2024.
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 08 March 2025 is ₹270.53, which is 24.01% lower than the current market price of 356.00, indicating the stock is overvalued by 24.01%. The intrinsic value of Sterling Tools Ltd is calculated using PE ratio method. The stock has a market capitalization of ₹1,288 Cr. and recorded a high/low of ₹744/303 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 1,288 Cr..

What is the current Stock Price of Sterling Tools Ltd as on 08 March 2025?

The current stock price of Sterling Tools Ltd as on 08 March 2025 is ₹356.

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 ₹744/303.

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

The Stock P/E of Sterling Tools Ltd is 19.6.

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 0.56 %.

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.

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