Sterling Tools Ltd
STERTOOLSSterling Tools Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it.
Biggest watch item: the P/E sits at the 88th percentile of its own range — the multiple has already done part of the work.
The price is in a downtrend (73 weeks in) while the P/E sits at the 88th percentile of its own 10-year range. Underneath, the last four quarters read deteriorating — profit −82.0% year on year, and 199% of the last 3 years' profit arrived as cash. What settles it: the next one or two quarters of delivery.
Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.
Sterling Tools Ltd trades at ₹246, in a downtrend and 73 weeks into that stage. That is −5.4% against its own 200-day average. It sits at 46% of a 52-week range of ₹163 to ₹341. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.
Today the stock is in a downtrend — week 73 of stage 4, confirmed. At ₹246 it trades −5.4% versus its 200-day average and sits at 46% of its 52-week range (₹163–₹341).
Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +170% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.
What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.
→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 88th percentile of its own range.
Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.
Sterling Tools Ltd trades at 36.7× P/E, at the pricey end of its own range (88th percentile). Its long-run median P/E is 26.0×, measured across 9.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.
Today's P/E of 36.7× is at the pricey end of its own range (88th percentile), against a long-run median of 26.0× measured over 9.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.
Why the multiple sits where it does: over the past year annual EPS moved −49.9% against a −35.0% price move — the price outran earnings, pushing the multiple UP its own range.
The price move, decomposed: over 5y, of the +4.0%/yr price move, ~+0.2%/yr came from earnings growth and ~+3.8 pp from the multiple (expanding); over 10y, of the +9.2%/yr price move, ~−2.2%/yr came from earnings growth and ~+11.4 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.
Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.
A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.
→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.
Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).
Sterling Tools Ltd reads as mixed on its fundamental arc. Mixed — revenue growth is rising at +11.1% (single-quarter readings) while profit growth is falling at −82.0% (single-quarter readings) — the curves disagree, so the per-curve reads carry the story. The read is built from 10 quarters across 3 curves, on partial evidence.
Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.
One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.
Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.
A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.
| 1yr | 3yr | 5yr | 10yr | |
|---|---|---|---|---|
| Revenue | −19.3% | +2.4% | +18.5% | +8.3% |
| Profit | −50.0% | −15.5% | +3.9% | +0.4% |
| EPS | −49.9% | −15.3% | +4.3% | −0.2% |
| Share price | −35.0% | −12.1% | +4.0% | +9.2% |
→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.
4-Factor Sector Score
26.3/100 — rank 18 of 19 in Castings, Forgings & Fastners · 77% evidence confidence
Sterling Tools Ltd scores 26.3 out of 100 against the 19 companies it is compared with in Castings, Forgings & Fastners, ranking 18. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.
The four contributions add to the total exactly: 6.2 + 9.5 + 7.2 + 3.4 = 26.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.
What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.
Revenue Revenue is the top line: everything the company billed its customers in the period.
Sterling Tools Ltd reported ₹222 Cr of revenue in the Mar 26 quarter, +11.1% year on year. Over 10 years it has compounded at 8.3% a year. The last full year, FY26, came in at ₹828 Cr. The last four reported quarters add to ₹828 Cr.
Sterling Tools Ltd reported ₹222 Cr of revenue in the Mar 26 quarter, +11.1% year on year. Over 10 years it has compounded at 8.3% a year. The last full year, FY26, came in at ₹828 Cr. The last four reported quarters add to ₹828 Cr.
FY26 revenue came in at ₹828 Cr (−19.3% on the year), capping 10 years at 8.3% compound. The latest quarter (Mar 26) printed ₹222 Cr, +11.1% year on year.
Pace check: the last four quarters averaged −17.2% growth against the decade's 8.3% — the current year is running slower than its own long-run rate.
Acceleration check: trailing-twelve-month revenue grew −19.3% over the last 4 quarters against −5.8%/yr over the last 8 — rolling over; TTM profit −49.7% vs −27.2%/yr — rolling over.
→ Revenue grew — did margins hold as it scaled? Next: 3.6% this quarter (−5.7 pp YoY).
Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.
Sterling Tools Ltd's operating margin is 3.6% in the Mar 26 quarter, −5.7 percentage points against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged 9.0% to 20.0%. The current quarter is running below every full year in that window.
Sterling Tools Ltd's operating margin is 3.6% in the Mar 26 quarter, −5.7 percentage points against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged 9.0% to 20.0%. The current quarter is running below every full year in that window.
The latest quarter's operating margin is 3.6%, −5.7 pp against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged 9.0%–20.0%.
🚨 Why the margin moved: operating margin went −5.7 pp year on year while gross margin went +4.5 pp — the loss came mostly from the gross line: input costs and pricing.
→ Margins slipped — did that reach the bottom line? Next: profit −82.0% in the latest quarter.
Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.
Sterling Tools Ltd earned ₹1.6 Cr of net profit in the Mar 26 quarter, −82.0% year on year. Full-year FY26 profit was ₹29.0 Cr. The 10-year compound rate is 0.4%. That is 0.7% of the quarter's revenue. The same quarter a year earlier earned ₹8.8 Cr.
Sterling Tools Ltd earned ₹1.6 Cr of net profit in the Mar 26 quarter, −82.0% year on year. Full-year FY26 profit was ₹29.0 Cr. The 10-year compound rate is 0.4%. That is 0.7% of the quarter's revenue. The same quarter a year earlier earned ₹8.8 Cr.
Mar 26 profit was ₹1.6 Cr, −82.0% year on year. On the full year, FY26 printed ₹29.0 Cr (−50.0%), and the 10-year compound rate is 0.4%.
🚨 Why profit moved: revenue contributed +11.1% and the margin −5.7 pp — the quarter was revenue-led despite a thinner margin.
Pace comparison, last four quarters: profit −55.8% vs revenue −17.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.
→ Profit rose — but did the cash follow? Next: 199% of the last 3 years' profit arrived as cash.
Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.
Over the last 3 fiscal years 199% of Sterling Tools Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹56.0 Cr of operating cash against ₹29.0 Cr of profit. After ₹56.0 Cr of capital spending, ₹0.0 Cr was left as free cash.
FY26: operating cash of ₹56.0 Cr against reported profit of ₹29.0 Cr, leaving free cash of ₹0.0 Cr after ₹56.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 199% of profit.
Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.
Why conversion sits at 199%: the cash cycle tightened 145 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.
Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.
→ So follow the cash to where it goes. Next: ₹170 Cr of building over 3 years.
Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).
Sterling Tools Ltd's cash conversion cycle runs 136 days in FY26, down from 281 days in FY21. Capital spending ran ₹170 Cr over the last 3 years. At FY26 sales of ₹828 Cr each day of that cycle holds about ₹2.3 Cr, so roughly ₹309 Cr sits inside the business at any moment.
FY26: debtors at 44 days, inventory at 172 days — roughly 5.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 136 days, tighter than FY21's 281.
The full loop: cash goes out to suppliers and production on day 0; stock waits 172 days to sell; customers pay about 44 days after that; and suppliers themselves are paid at 80 days — netting out to the 136-day cycle.
In money terms: at FY26 sales of ₹828 Cr, each day of the cycle holds about ₹2.3 Cr — so the 136-day loop keeps roughly ₹309 Cr sitting inside the business at any moment.
On the investment side: capital spending of ₹170 Cr over the last 3 fiscal years against ₹108 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹22.0 Cr (FY26) — capacity paid for but not yet earning.
The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.
→ Does all this activity actually earn its cost of capital? Next: ROCE is 7% and the ROIC − WACC spread is −7.8 pp.
Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified
Sterling Tools Ltd earns a ROCE of 7% in FY26. Return on invested capital clears the cost of that capital by −7.8 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 3.5% net margin on 1.01× asset turns.
FY26 ROCE is 7%.
🚨 Why the return is what it is — the wiring (FY26): 3.5% net margin × 1.01× asset turns × 1.56× balance-sheet leverage ≈ 5.5% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.
The capstone test — ROIC − WACC: 4.2% − 12.0% = a −7.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.
→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.28.
Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified
Sterling Tools Ltd carries total debt of ₹147 Cr against shareholder equity of ₹526 Cr as of Mar 26, a debt-to-equity of 0.28 — effectively unlevered. On the annual view that ratio went from 0.35 in FY22 to 0.28 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.
Mar 26: total debt of ₹147 Cr against shareholder equity of ₹526 Cr — a debt-to-equity of 0.28. On the annual view, debt-to-equity went from 0.35 (FY22) to 0.28 (FY26). The returns on this page are earned, not borrowed.
→ Who owns this, and are they adding or leaving? Next: Domestic institutions cut 5.4 points over 8 quarters.
Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.
Domestic institutions cut 5.4 points of Sterling Tools Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 0.1% of the company. Promoters moved −0.9 points over the same window, to 64.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.
The register over the last two years — Domestic institutions: −5.4 points over 8 quarters to 0.1%; Promoters: −0.9 points over 8 quarters to 64.9%; Foreign institutions: +0.0 points over 8 quarters to 0.1%.
🚨 Why the register moved: domestic institutions drove it (−5.4 points), alongside promoters (−0.9 points) — distribution into the market’s bid.
→ One last check: does the safety math agree? Next: the balance-sheet safety line.
Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.
Sterling Tools Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.
The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.
| Company | P/E | Mkt cap | Revenue | EPS | ROCE | Stage |
|---|---|---|---|---|---|---|
| Sterling Tools Ltd this page | 36.7× | ₹882 Cr | Mixed | |||
| Bharat Forge Ltd | 91.1× | ₹1L Cr | Mixed | |||
| Sona BLW Precision Forgings Ltd | 61.5× | ₹44,707 Cr | Mixed | |||
| CIE Automotive India Ltd | 17.5× | ₹15,696 Cr | Turning around | |||
| Happy Forgings Ltd | 51.0× | ₹15,247 Cr | Consistent | |||
| Ramkrishna Forgings Ltd | 92.0× | ₹10,579 Cr | Deteriorating | |||
| Kennametal India Ltd | 52.2× | ₹6,116 Cr | Deteriorating | |||
| Balu Forge Industries Ltd | 20.3× | ₹5,264 Cr | Mixed | |||
| Uniparts India Ltd | 19.3× | ₹3,113 Cr | Mixed | |||
| Steelcast Ltd | 35.9× | ₹3,103 Cr | Topping out | |||
| Sundaram Clayton Ltd | — | ₹3,005 Cr | No read | |||
| M M Forgings Ltd | 27.2× | ₹2,664 Cr | Deteriorating | |||
| Amic Forging Ltd | 70.5× | ₹1,992 Cr | No read | |||
| Amic Forging Ltd | 58.9× | ₹1,485 Cr | — | — | — | — |
| Gala Precision Engineering Ltd | 40.4× | ₹1,469 Cr | Turning around | |||
| Nelcast Ltd | 24.1× | ₹1,170 Cr | Turning around | |||
| Alicon Castalloy Ltd | 26.6× | ₹1,044 Cr | Mixed | |||
| Tirupati Forge Ltd | 151.0× | ₹951 Cr | Turning around | |||
| Uni Abex Alloy Products Ltd | 19.8× | ₹932 Cr | No read | |||
| Synergy Green Industries Ltd | 186.0× | ₹927 Cr | Mixed | |||
| Uni Abex Alloy Products Ltd | 16.7× | ₹581 Cr | Turning around |
Frequently asked questions
What is Sterling Tools Ltd's share price today?
Sterling Tools Ltd trades at ₹246, −35.0% over the past year. The company is valued at ₹882 Cr. The stock sits at 46% of its 52-week range of ₹163–₹341, −5.4% versus its 200-day average. On the tape, the price is in a downtrend, 73 weeks in. — as of 24 July 2026.
What were Sterling Tools Ltd's latest quarterly results?
Sterling Tools Ltd reported revenue of ₹222 Cr and net profit of ₹1.6 Cr for the Mar 26 quarter. Revenue rose 11.1% and profit fell 82.0% year on year. Earnings per share were ₹0.44. The operating margin was 3.6%, 5.7 pp lower than a year earlier. — as of 24 July 2026.
What is Sterling Tools Ltd's revenue?
Sterling Tools Ltd reported revenue of ₹222 Cr in the Mar 26 quarter, +11.1% year on year. For the full FY26 fiscal year, revenue was ₹828 Cr (−19.3%). Over the last 10 years revenue compounded at 8.3% a year. — as of 24 July 2026.
What is Sterling Tools Ltd's profit?
Sterling Tools Ltd earned ₹1.6 Cr of net profit in the Mar 26 quarter, −82.0% year on year. Full-year FY26 profit was ₹29.0 Cr. The operating margin ran 3.6% in the latest quarter. — as of 24 July 2026.
What is Sterling Tools Ltd's market cap?
Sterling Tools Ltd's market capitalisation is ₹882 Cr at a share price of ₹246. Market cap is the share price multiplied by shares outstanding, so it is restated whenever the price moves. — as of 24 July 2026.
What is Sterling Tools Ltd's P/E ratio?
Sterling Tools Ltd trades at a P/E of 36.7×, at the 88th percentile of its own 10-year range, against a long-run median of 26.0×. This is a comparison with the stock's own history, not a value call — as of 24 July 2026.
Does Sterling Tools Ltd pay a dividend?
Yes — Sterling Tools Ltd's dividend payout was 34% of profit in FY26, and it recorded a payout in each of its last 11 reported fiscal years. This page holds the payout ratio, not a per-share amount. — as of 24 July 2026.
Is Sterling Tools Ltd overvalued?
On its own history, Sterling Tools Ltd looks expensive against its own history: its P/E of 36.7× sits at the 88th percentile of its 10-year range (long-run median 26.0×). That is a percentile read against the stock's own past, not a price opinion or a direction call. — as of 24 July 2026.
Is Sterling Tools Ltd growing?
Not right now — Sterling Tools Ltd's latest numbers are shrinking: latest-quarter revenue +11.1% year on year, profit −82.0%, and the margin −5.7 pp at 3.6%. The 10-year compound rates are 8.3% (revenue) and 0.4% (profit). The earnings engine currently reads: deteriorating — as of 24 July 2026.
How is Sterling Tools Ltd performing?
Sterling Tools Ltd is in a downtrend, 73 weeks in. Its latest quarter's revenue rose 11.1% and profit fell 82.0% year on year. Against the NIFTY 500 it has been ahead on a trailing-13-week view for 1 week. This describes what the data did, not a rating. — as of 24 July 2026.
What stage is Sterling Tools Ltd in?
Mixed — revenue growth is rising at +11.1% (single-quarter readings) while profit growth is falling at −82.0% (single-quarter readings) — the curves disagree, so the per-curve reads carry the story. The read comes from the last 12 quarters of growth (revenue growth +11.1% latest, profit growth −82.0% latest) plus the ROCE curve, classified by deterministic rules — a trajectory read, not a buy or sell call — as of 24 July 2026.
Is Sterling Tools Ltd in an uptrend?
No — the price is in a downtrend (week 73 of stage 4), trading −5.4% versus its 200-day average and at 46% of its 52-week range. Price stages cycle base → advance → top → decline, and the stage names where this stock sits in that cycle — as of 24 July 2026.
Is Sterling Tools Ltd beating the market?
On recent form, yes — Sterling Tools Ltd has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week, the same metric the week-by-week ribbon on this page draws. Separately, on the cumulative view: over the last 10.3 years the stock moved +170% against the NIFTY 500's +274% — behind the index over the full window. — as of 24 July 2026.
Will Sterling Tools Ltd's share price go up?
This page publishes no price forecast for Sterling Tools Ltd. What it measures instead: the share price is ₹246, the price is in a downtrend 73 weeks in. Its P/E of 36.7× sits at the 88th percentile of its own 10-year range. — as of 24 July 2026.
Who owns Sterling Tools Ltd?
Promoters hold 64.9% of Sterling Tools Ltd, foreign institutions 0.1%, domestic institutions 0.1% and the public 35.0% (latest quarter). The biggest move on the register over the last two years: Domestic institutions cut 5.4 points over 8 quarters. — as of 24 July 2026.
Does Sterling Tools Ltd have too much debt?
No — Sterling Tools Ltd's debt-to-equity is 0.28, and operating profit covers the interest bill 8×. FY26 borrowings were ₹147 Cr against equity of ₹526 Cr. The returns on this page are earned, not borrowed — as of 24 July 2026.
What is Sterling Tools Ltd's capex?
Sterling Tools Ltd spent ₹170 Cr on capital expenditure over the last 3 fiscal years, a figure derived from the change in fixed assets plus depreciation. In FY26 alone that was ₹56.0 Cr, with ₹22.0 Cr in capital work-in-progress — capacity paid for but not yet earning. — as of 24 July 2026.
What is Sterling Tools Ltd's cash flow?
Sterling Tools Ltd generated ₹56.0 Cr of operating cash flow in FY26 and ₹0.0 Cr of free cash flow after ₹56.0 Cr of capital spending. Reported profit that year was ₹29.0 Cr, so operating cash ran ahead of profit. Cash-flow resolution for India is annual. — as of 24 July 2026.
Is Sterling Tools Ltd's profit real cash?
Yes — over the last 3 fiscal years, 199% of Sterling Tools Ltd's reported profit arrived as operating cash. In FY26, operating cash was ₹56.0 Cr against reported profit of ₹29.0 Cr. The cash then goes mostly into building capacity. Cash-flow resolution is annual — as of 24 July 2026.
Where is Sterling Tools Ltd in its business cycle?
Sterling Tools Ltd's FY26 operating margin was 9.0%, against a 11-year band of 9.0%–20.0%: the low end of its own band, which is where recoveries start when they come. The latest quarter ran 3.6%. Profitability versus a company's own long band is the cleanest cycle clock this page holds — as of 24 July 2026.
What could break the Sterling Tools Ltd story?
Biggest watch item: the P/E sits at the 88th percentile of its own range — the multiple has already done part of the work. Mechanically, two Friday closes in a row below the 200-day average would end the price trend — that is the exit rule this page tracks — as of 24 July 2026.
Is Sterling Tools Ltd a stock worth studying right now?
This is not investment advice. The machine read: Sterling Tools Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it. The sharpest open question: the next one or two quarters of delivery. Every number on this page is drawn deterministically from the raw series, with no forecasts and no price opinions — as of 24 July 2026.