Buy Sterling Tools; target of Rs 413: Dolat Capital

Dolat Capital is bullish on Sterling Tools has recommended buy rating on the stock with a target price of Rs 413 in its research report dated November 17, 2018.

November 20, 2018 / 04:21 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Sterling Tools


Sterling tools (STRT) number were broadly in line with estimates. Margins on a sequential basis have started showing signs of improvement at gross level. Considering that raw material pressure has been easing, we expect margins to remain stable / expand from current levels. This will b driven by increase in proportion of specialized fasteners. With capacity expansion on schedule, we believe that STRT will continue to grow on revenue front with strong margins. Effort to expand customer base will also augur well in long term.


Outlook


Considering the market outlook and increase in risk free rate, we have adjusted PER accordingly. We continue to like the story on a structural basis and reiterate BUY with a target price of ` 413.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 20, 2018 04:21 pm

stay updated

Get Daily News on your Browser
Sections