Auto Sector Stock Jumps Over 9 Per Cent As Company Partners with China’s GLVAC to Manufacture Advance High Voltage DC Contactors and Relays in India for Electric & Hybrid Vehicles
The shares of the company saw a spurt in volume by more than 4 times on BSE.
On Wednesday, shares of Sterling Tools Ltd jumped 9.73 per cent with an intraday high of Rs 564.85 per share from its previous closing of Rs 514.75 per share. The shares of the company saw a spurt in volume by more than 4 times on BSE. The stock’s 52-week high is Rs 639.15 and its 52-week low is Rs 305.
Sterling Tools Limited (BSE: 530759) (NSE: STERTOOLS), the second largest automotive fastener manufacturer in India, through its wholly owned subsidiary Sterling Tech-Mobility Limited, has entered into a partnership with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd. ('GLVAC YT'), a wholly owned subsidiary of China's Kunshan GuoLi Electronic Technology Co., Ltd. ('GLVAC'), to manufacture advanced High Voltage Direct Current (HVDC) contactors and relays in India. These components play a key role in controlling the flow of current in electric and hybrid vehicles.
This association is expected to generate Rs 250 crore in business by FY30 and Sterling Tools will bring the niche technology to manufacture and assemble HVDC Contactors and relays locally at a new facility in Bengaluru, India with an investment of around Rs 40 crore. By producing these components domestically, Sterling Tools aims to drive import substitution aligning with the Atmanirbhar Bharat vision and supporting the Make in India initiative. The development will empower Indian OEMs, Tier-I Companies, and other suppliers to access advanced technology right at home, building a self-reliant ecosystem for the Electric Vehicles (EV) and Hybrid Electric Vehicles (HEV) sectors.
HVDC contactors and relays are crucial components in electric and hybrid vehicles, managing and controlling high-voltage electricity flow between the battery, motor controller or inverter, and other power electronic systems. These components provide safe switching and isolation in EV power circuits, ensuring efficient operation while protecting against electrical faults. In the event of accidents or short circuits, these help to prevent hazards such as fires or explosions.
Sterling Tools through its wholly owned subsidiary Sterling Tech-Mobility plans to expand local manufacturing of electric vehicle components and electrical systems, strengthening India's EV supply chain and reducing reliance on imports. With the EV market poised for significant growth, this partnership is well-timed to capitalize on emerging opportunities while contributing to green mobility future.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
About Sterling Tools Limited
Sterling Tools Limited (STL), established in 1979, is a prominent manufacturer of high-tensile cold forged automotive fasteners. Catering to a diverse range of segments, including passenger cars, two-wheelers, commercial vehicles, agricultural equipment, and construction equipment, STL has earned a strong reputation for its quality products and solutions. Recognizing the potential of emerging technologies, STL has expanded its operations to include electric vehicle (EV) components through its subsidiaries. This strategic move positions the company to capitalize on the growing EV market and deliver value to its stakeholders. STL's client base comprises both established OEMs and innovative start-ups, further solidifying its position as a trusted partner in the automotive industry.
Disclaimer: The article is for informational purposes only and not investment advice.