BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Sterling Tools Ltd.'s consolidated revenue de-grew 4.7 % QoQ at Rs 2.10 billion due to fall in non fastener business. Ebitda remained flat QOQ to Rs 254 million with 95 bps expansion in operating margin at 12.1%, due to better mix.
Management expects to outperform industry growth in fastener business led by new client acquisition in four-wheeler and two-wheeler segment. Margin is expected to improve in the coming quarter with softening raw material prices.
Electric vehicle component business revenue stood at Rs 1.3 billion in H1 and expect to maintain the same run rate in H2.
Sterling Tools is the leader with 40% market share, being the motor control unit supplier for high-speed scooters (more than 50 Kmph).
We trim our earnings per share estimates by 11/18% for FY24/25E factoring in lower revenue from non-fastener business and value the stock Rs 380 (based on 16 times Sept 25E EPS). Maintain 'Accumulate'.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
