The shares of the prominent automotive fastener manufacturers gained up to 9 percent after the company forayed into Rare Earth Magnet-Free traction motors for electric vehicles.
With a market capitalization of Rs 1,157.90 crore, the shares of Sterling Tools Ltd were trading at Rs 318.50 per share, increasing around 7.60 percent as compared to the previous closing price of Rs 296.00 apiece.
The shares of Sterling Tools Ltd have seen positive movement after its subsidiary, Sterling Gtake (SGEM), entered the development and marketing of Rare Earth Magnet-Free traction motors for EVs. SGEM signed a Technology Licensing Agreement with UK-based AEM Ltd to manufacture these advanced motors at its Faridabad plant using AEM’s patented technology.
Further, under a Technology Licensing Agreement, SGEM will target the entire traction motor market, projected to reach Rs 15,000 crore by 2030, while jointly developing integrated motor and controller solutions as part of its strategy.
Sterling Tools’ domestic production of motors supports import substitution and reduces dependence on permanent magnets, aligning with the Atmanirbhar Bharat and Make in India initiatives. This move enables Indian companies and suppliers to access advanced technology locally, fostering a self-reliant and robust ecosystem for the country’s auto industry.
Dr. James Widmer, Co-Founder & Chief Executive Officer of Advanced Electric Machines, said, “India’s automotive and zero-emission manufacturing market offers immense potential for growth and innovation. Through our partnership with Sterling Tools, we are bringing our proven expertise in magnet-free motors to Indian customers across a wide range of vehicle categories. Together, we can create high-quality powertrain solutions that cater to India’s growing need to reduce its tailpipe emissions, while also supporting the country’s self-reliance and sustainability goals.
Operational Highlights
Looking forward to the company’s financial performance, revenue down by 26 percent from Rs 269.25 crore in Q4FY24 to Rs 199.76 crore in Q4FY25, Further, during the same time frame, net profit decreased by 43 percent from Rs 16.25 crore to Rs 8.81 crore.
Sterling Tools showcases a well-diversified revenue mix in FY25. OEMs account for 87% of STL’s revenue, with exports and replacement channels making up the rest. Segment-wise, STL serves PVs (30%), 2Ws (26%), the rest CVs, farm equipment, retail, and exports. SGEM’s EV business is OEM-focused, driven by 2W and 3W segments.
STL’s key clientele spans major OEMs across passenger vehicles, two-wheelers, commercial vehicles, farm equipment, construction, and Tier-1 suppliers. Notable clients include Maruti Suzuki, Hero MotoCorp, Tata Motors, Mahindra, Volvo, and JCB. STL also exports to global players and has a strong aftermarket presence with 100+ distributors pan-India.
Sterling Tools Limited is an India-based company engaged in the manufacturing of high-tensile cold forged fasteners. The Company caters to various automotive companies in India, Europe, and the United States. Its product portfolio includes standard fasteners, special fasteners, stainless steel fasteners, bolt fasteners, and others.
Written by Abhishek Singh
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