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Last Updated : Dec 31, 2015 12:25 PM IST | Source: Moneycontrol.com

Buy Sterling Tools; target of Rs 610:Firstcall

Firstcall is bullish on Sterling Tools and has recommended buy rating on the stock with a target price of Rs 610 in its research report dated December 30, 2015.

 
 
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Firstcall's research report on Sterling Tools

Sterling Tools Limited (STL), founded in 1979, engages in manufacturing of high-tensile (HT) cold forged fasteners mainly for automobiles. The Company is one of top 3 fasteners manufacturers in India and caters to leading automotive companies in India, Europe, South America and USA-NAFTA. Product portfolio includes special fasteners, standard fasteners, surface treatment and coatings, chassis fasteners and engine fasteners. Product range includes over 2,000 types of fasteners ranging from 5 mm to 24 mm in diameter. The Company has three manufacturing plants in Haryana with a total capacity of 41,600 MT. STL is the largest supplier of HT fasteners to Honda and the second largest supplier to Maruti and Tata. Company’s other blue chip customers include Ashok Leyland, Daimler, FIAT, Hero Motocorp, Mahindra & Mahindra, Volvo, Eicher, TAFE and General Motors.

Price to Book Value of the stock is expected to be at 2.55 x and 2.14 x for FY16E and FY17E respectively. Hence, we recommend ‘BUY’ in this particular scrip with a target price of Rs. 610.00 for Medium to Long term investment.


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First Published on Dec 31, 2015 12:25 pm
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