Indian Auto Industry – The Indian Automobile industry has given amazing performance in FY 23-24. As per data provided by Society of Indian Automobile Manufacturers (SIAM), there was increment in national market by 12.5% with total units sold which observed growth from 21.2 million units in FY 2022-23 to 23.85 million units in FY 23-24. Along with this, the passenger vehicle segment observed growth by over 8% with domestic sales increasing from 4.22 million units from 3.89 million units in previous financial year. The two-wheeler segment observed huge growth, reaching approximately 17.97 million units, whereas three three-wheeler segment observed massive increment of 41.5%, with sales rising to 0.97 million units, through light and small commercial vehicle segment observed drop.
In FY 23-24, the total production by Indian automotive sector was 28.43 million vehicles across several categories, including commercial vehicles, two-wheelers, three-wheelers, and quadricycles. This shows huge growth compared to 25.93 million units manufactured during same period in previous financial year.
Electric Vehicles Industry – The electric vehicles sector in India has just made entry into the markets, with EVs generating of about 5% of total vehicle sales between October 2022 and September 2023. The increment in trend shows slight transition from electric alternatives led by factors such as increased environmental awareness, government schemes, and modern technology that increase efficiency and electric vehicles at reasonable prices. The main factors which are responsible for growth is forecasted more than 45% penetration in two-wheeler and huge growth in three-wheeler due to lower cost of ownership.
In FY-23, 2W EVs has attained top position in market with 85 to 90% of total EV sales whereas 4W EVs has made contribution of 7% to 9,% and 3W EVs has contributed 5% to 7% of total EV sales. The market share in EVs is forecasted to increase 40% by 2030 led by strong adoption rates in 2W and 3W segments. To achieve this growth, OEMs and EV partners will have to make changes in investment areas including sustainable competition benefit, customer feedback, supply chain, brand image, go-to-market, production and distribution channel strategy.
Indian Auto Component industry – India is slowly becoming international hub for auto component sourcing with industry exporting over 25% of annual production. The industry includes players of all type, from large companies to micro enterprises, spread across various parts of India. The contribution made by auto component sector is around 2.3% of India’s GDP, generating direct employment to over 1.5 million people. The OEMs has made huge investments and building new EV products, the industry is preparing for future to actively take part in EV distribution channel. The purpose of sector is to invest Rs 58,000 crores by FY-28 to increase localisation of modern components such as electric motors and automatic transmissions. Production Linked Incentive (PLI) schemes on automobiles and auto components are projected to bring capex of Rs 74,850 crores in next 5 years.
India’s systematic location near main automotive markets such as Europe, Japan, Korea, and ASEAN increase its appeal as top player in auto component sourcing hub. In Future, India’s Auto Component market is forecasted to play main role in shaping the future of mobility, both within country and at international level. In this article, we will learn interesting information about Sterling Tools Ltd Share Price Target, market cap, ROCE, ROE, promoter, shareholding pattern, industry, revenue, and net profit.
Sterling Tools Ltd – Key Points
Name of promoter
Mr. Anil Aggarwal
Industry
Auto components
Established
1979
Headquarters
Faridabad, Haryana
Employees
1780
2nd Largest
Manufacture of Fasteners
Sterling Tools Ltd – Statistics
Market cap
Rs 1,116 crores
ROCE
14.7%
ROE
12.9%
Book value
Rs 133
Face value
Rs 2
Stock PE
17 times
About Sterling Tools Ltd
Sterling Tools Limited stands ahead in automotive fastener manufacturing in India. The company is well-known for improvement in product and thinking ahead strategy, the company with help os its subsidiary, Sterling Gtake E-mobility Limited (SGEM) is main supplier of Motor Control Units (MCUs) to India’s increasing Electric Vehicle sector. Encouraging international shift towards sustainable mobility SGEM which provides extensive variety of MCUs customized for EV manufacturers in segments such as two-wheelers, commercial vehicles, and three-wheelers.
The company has vast experience and knowledge of over 40 years, the company manages business operations from 4 fasteners manufacturing units, 1 MCU production unit and 2 tech centres. The company provides huge dedication to manage best quality products which has witnessed in its implementing world-class manufacturing units, environmentally sustainable technologies, and with huge passion commitment made by its talented team. The company has made strong commitment which goes beyond improvement in product to include wide industry transformations. The company concentrates on sustainability and impact on society, it has vision to be one of the most favourable brand for its customers, increase shareholders value, build huge respect in community and implant pride among employees.
The company has systematically created Memorandum of Understanding (MoU) with Yongin Electronics Co. Ltd, a genuine distributor of Hyundai Kia Motor based in South Korea. This systematic alliance is forecasted to yield massive business volume of Rs 250 crore over period of 5 years. Along with this partnership, the company is looking to setup modern greenfield production unit. The MoU highlights modern advancement in manufacturing for Sterling Tools by increasing its production capacity to provide customized solutions fulfilling requirement of Electric Vehicle and Hybrid categories alongwith other automotive applications. The company takes benefit of advanced technology developed by Yonging’s company, this collaboration is forecasted to maintain Sterling’s top position in automotive sector.
The company is combination of uniqueness and innovation to expand the future of mobility. The company is second largest manufacturer of fasteners, the company has long journey of over 4 decades is possible due to consistency and unstoppable growth towards best results. The company further increases its business in diversification of Motor Control Units (MCUs) which shows strong commitment to deliver e-mobility solutions. The flexibility is at the centre of STL Group. The struggles arising in this sector is controlled with our strength, the company adopts and performs best by consistently pushing its limits.The company has modern manufacturing units and strong team of talented employees encourage us to capture new business opportunities in the field of electric and green mobility solutions. This consistent increases to achieve best results, by assuing that company provides huge value to stakeholders by maintaining best quality guidelines, sustainability, and integrating modern technologies.
The company is main automotive fastener manufacturer since 45 years. in past few years, the company has made strong commitment to achieve best results which goes beyond conventional components, the company is ahead of electric vehicle transformation, with Sterling Gtake E-Mobility Limited (SGEM) the wholly owned subsidiary which helps to setup top manufacturer of Motor Control Units (MCUs) in India.
What does company do – The company is manufacturer of extensive variety of best quality chassis and special engine fasteners for automotive sector. With help of SGEM, the company manufactures Motor Control Units (MCUs) for Electric Vehicles (EV).
How we operate – The most recent R&D set up by company, huge experience and vertically integrated manufacturing units take benefits of modern technology and strict quality guidelines. The company supplies best quality automotive fasteners both in India and at global level including aftermarket segment. The company delivers MCUs to top Original Equipment Manufacturers (OEMs) in India. The company is actively involved in EV sector, entering into partnership with top players to build innovative solutions for durable future in India.
The company has transitioned itself from conventional manufacturing company to top player in electric mobility solutions provider. The company has achieved huge growth by creating MCUs, the company is scaling its business into other e-mobility solutions, including E-powertrain and power electronics. The company has achieved top position to bring all solutions needed for future of e-mobility.
Mission – The company offers genuine and best quality auto components to its customers by implementing best quality manufacturing guidelines, green technologies, entrepreneurial vision, and huge passion of our employees.
Philosophy of our company – The philosopy of our company includes extensive strategy in manufacturing, maintaining quality, and human resource development. By concentrating on overall atrributes, the company is looking for perfection and best quality results in production, assuring customer satisfaction. This encourages us to provide best quality products while supporting an environment where people can contribute to huge success.
SGEM is a top player in India’s Electric Vehicle (EV) industry, achieving huge expertise in growth and manufacturing of Motor Control units (MCUs) for two-wheelers, three-wheelers, and light commercial vehicles. The comprehensive range of product portfolio fulfills requirements of products, assuring effective and reliable solutions across various EV segments. The company takes benefits of various manufacturing plants located in Faridabad, Haryana along with two tech centres each in Bangalore and Faridabad to provide solutions as per customers requirements. The company has achieved expertise in usage, SGEM is genuine partner for EV manufacturers encouraging the future of sustainable mobility.
Early Mover Advantage – Sterling Gtake E-Mobility Limited (SGEM) a wholly owned subsidiary ia ahead in building Motor Control Units (MCUs) for a range of electric vehicles including two-wheelers, three-wheelers, and electric commercial vehicles. The company has captured market share of 50% in high-speed scooter segment. SGEM captures 26% of MCU market encouraged by strong talented engineering team and has supportive community to manage huge production process and customer needs.
Revenue and net profit
Particulars
FY-24 (Rs. in crores)
Sales
932
Expenses
824
EBITDA
108
Other income
7
Interest
9
Depreciation
33
Profit before tax (%)
72
-Tax (%)
(23%)
Net profit
55
EPS in Rs
15.37
Balance Sheet (FY-24)
Liabilities
Rs
Assets
Rs
Equity Capital
7
Fixed assets
278
Reserves
440
CWIP
7
Borrowings
118
Investments
12
Other Liabilities
145
Other assets
414
Total Liabilities
710
Total assets
710
Shareholding Pattern (March 2025)
Promoters
65.02%
FIIs
0.51%
DIIs
2.85%
Public
31.61%
Sterling Tools Ltd – Watch Ful Video
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Sterling Tools Ltd Share Price Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
309
326
343
2026
346
368
390
2027
395
428
460
2028
466
508
550
2029
554
607
660
2030
665
755
845
2035
1330
1447
1564
2040
2659
2817
2975
Sterling Tools Ltd Share Price Target – 2025
If market faces downward trends, the minimum projected price is anticipated to hit Rs 309. The average trading price is projected to hit Rs 326 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to hit Rs 343. The company has more than 40 years of vast experience and deep expertise which has developed strong credit among stakeholders. The company has strong talented team with huge leadership, integrated with massive talent and huge workforce, enabling us to achieve best results in new business ventures and generate consistent growth.
Sterling Tools Ltd Share Price Target – 2026
If market observes downward trends, the minimum forecasted price is expected to hit Rs 346. The average trading price is projected to hit Rs 368 at the mid of the year. If market faces bullish sentiments, the maximum forecasted price is expected to hit Rs 390. The company is actively looking to enter into partnerships and explore co-operation among top leaders in the sector to scale our capabilities and market share across internal combustion engine ICE) vehicles, electric vehicles and modern green technologies in auto component industry. The company uses 100% LED lighting in manufacturing unit and employs effective sources of energy.
Sterling Tools Ltd Share Price Target – 2027
If market faces downward sentiments, the minimum forecasted price is expected to hit Rs 395. The average trading price is projected to hit Rs 428 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to touch Rs 460. The company gives preference to develop balanced product portfolio that includes premium priced valuable products with healthy profit margins. This concentration assures strong financial capacity, encouraging to reinvest in product development and growth. The company is actively transforming towards renewable energy sources. The solar power plants located in Bangalore (900 Kw) and Prithla (700 Kw) develop green energy by reducing our dependency on traditional energy sources.
Sterling Tools Ltd Share Price Target – 2028
If market observes downward sentiments, the minimum projected price is expected to hit Rs 466. The average trading price is projected to hit Rs 508 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to hit Rs 550. The company has deployed water filtration system which permits to use 1000 Kilolitres of rainwater annually on plants. The company is also looking foe extra sources of water conservation. The company is very passionate to minimize impact of carbon emissions footprint. the company installed generators with high fuel capacity by reducing pollution.Moreover, company plant trees around factory to improve air quality.
Sterling Tools Ltd Share Price Target – 2029
If market observes bearish signals, the minimum forecasted price is estimated to reach Rs 554. The average trading price is projected to hit Rs 607 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to hit Rs 660. The company has made strong commitment to maintain fairness in sustainability efforts. The company uses genuine reporting system with dedicated team of employees for monitoring to assure preciseness of data. The company has entered into production of Motor Control Units (MCUs) for Electric Vehicles has developed strong base and manage proper competition.
Sterling Tools Ltd Share Price Target – 2030
If market faces bearish sentiments, the minimum projected price is expected to hit Rs665. The average trading price is projected to hit Rs 745 at the mid of the year. If market observes bullish signals, the maximum projected price is estimated to hit Rs 855. The company is looking to increase its product portfolio to include other e-mobility solutions products such as powertrains and power electronics with purpose to further take benefit of opportunities introduced by rising demand for electric and genuine transportable solutions. This EV based expansion approach systematically aligns with market trends and positions company to fulfill needs of various customers.
Sterling Tools Ltd Share Price Target – 2035
If market observes downward signals, the minimum projected price is expected to hit Rs1330. The average trading price is projected to hit Rs 1447 at the mid of the year. If market faces bullish sentiments, the maximum projected price is expected to hit Rs 1564.
If market observes bearish sentiments, the minimum projected price is estimated to hit Rs 2659. The average trading price is projected to hit Rs 2817 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to hit Rs 2975.
Ans – The owner of Sterling Tools Ltd is Mr. Atul Aggarwal.
Q2) What is the turnover of Sterling Tools Ltd?
Ans – Theturnover of Sterling Tools Ltd in FY-16 was Rs 28 crores which has increased to Rs 55 crores in FY-24.
Q3) Who are the competitors of Sterling Tools Ltd?
Ans – Thecompetitors of Sterling Tools Ltd are: Uno Minda, Bosch, Craftsman Automation, Fiem industries, Gala Precision Engineering, Simmonds Marshall Ltd.
Q4) Is Sterling Tools Ltd a debt-free company?
Ans – No, Sterling Tools Ltd is not a debt-free company. The Long-term borrowings is Rs 26 crores and short-term borrowings is Rs 104 crores.
Q5) What are the products of Sterling Tools Ltd?
Ans – The products of Sterling Tools Ltd are: Sheet Metal Stamping, Sheet Metal Fabrication, Steel Pallets, Material Handling Trolleys.
Q6) What is the PE ratio of Sterling Tools Ltd?
Ans – The PE ratio of Sterling Tools Ltd is 17 times.
Q7) Is Sterling Tools Ltd a good stock to buy?
Ans –Yes,Sterling Tools Ltd is a good stock to buy for long-term purpose. The net profit of company in FY-13 was Rs 28 crores which has increased to Rs 55 crores in FY-24. The share price of company in FY-2006 was Rs 29.94 which has increased to Rs 309.95 in FY-25 generating returns of almost 935.24% in past 18 years.
