This automotive fastener company surges 111% within 6 weeks

In July 2021, SGEM had bagged an order worth ₹60 crore from a leading electric two-wheeler maker for high-speed electric two-wheeler application and has also secured a follow-up order for ₹100 crore from the same customer. It has also secured orders from 10 other EV OEMs.

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Shares of Sterling Tools (STL), a leading automotive fastener company, hit an over three-year high of ₹260, gaining 9 % on the BSE in Friday’s intra-day trade, on hopes of healthy business outlook.

Since May 13, the stock has zoomed 111 % from a level of ₹123.20. With this, the stock hit its highest level since May 2019 in the intra-day trade today. The stock had hit a record high of ₹478 on December 8, 2017

STL is the second largest automotive fastener manufacturer in India.

STL, recently, entered the electric vehicle (EV) space through a partnership with Jiangsu Gtake to manufacture Motor Control Units (MCUs) – now one of the largest MCU companies in India. Sterling Gtake E-mobility (SGEM) is a Joint Venture between Sterling Tools, one of leading automotive fasteners manufacturers in India and Jiangsu Gtake Electric Co., China. SGEM has been at the forefront of EV value chain by offering localized MCUs for battery & hybrid electric vehicles in India.

In July 2021, SGEM had bagged an order worth ₹60 crore from a leading electric two-wheeler maker for high-speed electric two-wheeler application and has also secured a follow-up order for ₹100 crore from the same customer. It has also secured orders from 10 other EV OEMs.

As on May 31, 2022, the order book stands at ₹175 crore, all of which will be executed in FY23, STL said in an exchange filing.

The company further added that it envisages a capex of ₹50 crore over the next couple of years. Current capacity of 300,000 units is being further enhanced to cater to additional demand and an Engineering Centre has been established in Bangalore to accelerate domestic development of MCUs, the company said.

The stock of Sterling Tools last hit in BSE,

  • Intraday High of ₹ 261.55
  • Intraday low of ₹ 238.65