Sterling Tools Ltd Stock Research

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Sterling Tools Ltd Detail

Sterling Tools Ltd is in portfolio of Anil Kumar Goel ,Seema Goel and Dolly Khanna . He is one of the top investors in India. The company belongs to Fastener sector.

As per the Company website it is premier producer of cold forged hi-tensile fasteners. You can think of Fasteners as Nuts and Bolts. The products from the Company can be divided into below categories

  • Standard Fasteners
  • Special Fasteners – Can be sub divided into
    • Stainless Steel Fasteners
    • Bots Fasteners
    • Nuts fasteners
    • Screws fasteners
    • Anchor fasteners
  • Chassis Fasteners
  • Engine Fasteners

The Company has all the manufacturing unit present in Faridabad in Haryana. It has three manufacturing units. The products from the Company are used in commercial vehicle, passenger car and agri-equipment segments.

The Company has sales office in Chennai and Pune. It also exports to different countries in Europe and US. Right now majority of products are consumed internally and small percentage is exported. But Company is trying hard to increase the export share.

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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Sterling Tools Ltd Stock Performance

The stock has given 10 times return in past 12 years. The stock made debut in year 2006 at listing price of 30 INR. It under performed for next two three years due to Global crisis and went below listing price.

The stock remain unnoticed and traded flat with some positive recovery from lowest point in year 2010. Major jump came in year 2014 during the bull run. The dividend yield of Company at current market price is 1% which is very good.

Sterling Tools Ltd My Opinion

Sterling Tools Ltd is a Fasteners Company. Fasteners is a niche sector and not too many companies are listed in this sector. Products from this sector is consumed mainly by Auto sector and other similar industries. Auto Sector two wheeler and four wheeler (all of vehicles) use these products.

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You can view it as Auto Ancillary Company as well but that is partly true. Some products do find use in other industry like Agricultural Equipment etc. India’s Auto story is still intact. People will continue buying the two wheeler and four wheeler out of necessity and show off both.

As the Auto Industry growth will progress so is Fasteners. I am bullish on this sector and am tracking one of the stock from this sector. In case you are interested then you should explore the sector companies before making a decision.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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