Shares of this small-cap company engaged in the manufacturing of high-tensile cold forged fasteners rose nearly 10 percent to Rs.565.00 per share after Partnering with China’s GLVAC to Manufacture advanced high-voltage DC Contactors and Relays in India for Electric and Hybrid Vehicles.
Price Movement
In Wednesday’s trading session, Sterling Tools Ltd’s share price reached an intraday high of Rs.565.00 per share, up 9.7 percent from its previous closing price of Rs.514.65 apiece. The share has since retreated and is currently trading at Rs.552.10 each.
What is the news
Sterling Tools Limited has partnered with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd. (GLVAC YT) to manufacture High Voltage Direct Current (HVDC) contactors and relays in India.
The partnership, expected to generate Rs.250 crore by FY30, involves a Rs. 40 crore investment in a new Bengaluru facility. This move supports the Atmanirbhar Bharat and Make in India initiatives, offering advanced technology to local EV and HEV sectors.
The development will enable Indian OEMs, Tier-I companies, and other suppliers to access advanced technology domestically, fostering a self-reliant ecosystem for the Electric Vehicle (EV) and Hybrid Electric Vehicle (HEV) industries.
Management Commentary
Commenting on this new association, Anish Agarwal, Director from Sterling Tools Limited, said, “As the electric and hybrid vehicle markets continue to expand, it is important that we integrate the highest safety measures in the electric and hybrid vehicles through advanced technological systems.
This association highlights our commitment to the safety of high voltage battery & power electronic systems and contributes to the Make in India initiative of the Government of India. We will manufacture advanced HVDC Contactors and relays at our new Bengaluru facility, making them more affordable and accessible for OEMs and Tier-1 companies.”
Financial Performance
In its recent financial update for the quarter ending June 2024, Sterling Tools Limited reported revenue from operations of Rs.282 crore, reflecting a 78 percent incline from Rs.514.96 crore in Q1 FY24. Net Profits also improved to Rs.18 crore from a net loss of Rs.13 crore in the same period.
About the Company
Sterling Tools Limited (STL) specializes in producing high-tensile cold-forged automotive fasteners, serving industries such as passenger cars, two-wheelers, commercial vehicles, agricultural equipment, and construction machinery.
Through its subsidiary, STL has also expanded into emerging sectors like Electric Vehicle (EV) components, aiming to create significant value for its stakeholders. The company’s client base includes both established and new OEMs.
Written by – Siddesh S Raskar
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