STERLING TOOLS -IMPROVING BUSINESS

Sterling Tools is one of the largest suppliers

of fasteners to the OEM ‘s in automobile industry.
Company’s products list includes hub/wheel bolts, hub nuts,
wheel studs,suspension bolts, propeller shaft bolts/nuts,
centre bolts,track shoe bolts/nuts, rivets and two
wheeler spindles.Apart from OEM supply company also
having a wide marketing network for selling its products
to non OEM customers.Sterling has four plants ,one each
at Faridabad,Ballabhgarh, Prithla and uttaranchal.Company
 is also exporting its products to major automakers in U.S.,
UK,and Europe.Company has recently signed an agreement
with Netherland based Fabory B.V for setting

up a plant in India for non automotive 

fastners.This is a 50:50 joint venture with this giant
which having presence in 16 countries worldwide.
Last year company’s performance was poor due to
sluggish demand in auto and related sectors.

With the revival in demand, now company 

is again returned to high growth phase. In last FY
company posted a turnover of 151 crore and a net
profit of 1.7 crore.For the nine month

ended in this FY, company already 

posted a turnover of 123 crore and a net profit
of Rs.7.6 crore and expected to post an EPS of Rs.18/- for
the full year.Company has a  very liberal dividend history and
already declared  30% interim dividend

in this FY.In 2005 company declared

a bonus in 1:1 ratio. Currently it is trading around Rs.97/-
A good BUY on dips.