Eyes Rs 200 Crore Revenue by FY30: Automotive Fastener Manufacturer Partners with China’s Meishuo Electric for Power Transmission Solutions in India
The company has a market cap of Rs 2,654 crore and the stock gave multibagger returns of 144 per cent from its 52-week low of Rs 305 per share.
On Monday, shares of Sterling Tools Ltd jumped 7.22 per cent and made a new 52-week high of Rs 744.30 per share from its previous closing of Rs 694.15 per share. The company has a market cap of Rs 2,654 crore and the stock gave multibagger returns of 144 per cent from its 52-week low of Rs 305 per share.
Sterling Tools Limited, a leading automotive fastener manufacturer in India (BSE: 530759, NSE: STERTOOLS), is venturing into the energy sector. Through its wholly owned subsidiary, Sterling Tech-Mobility Limited, the company has partnered with Zhejiang Meishuo Electric Technology Co., Ltd., China, to manufacture latching relays locally. These relays play a crucial role in reducing power consumption and extending the lifespan of components in smart metering systems, industrial and white goods applications.
The partnership is expected to generate Rs 200 crore in business by FY30. Sterling Tools will invest around Rs 20 crore to set up a new facility in Bengaluru to manufacture and assemble these relays locally. By producing these components domestically, the company aims to reduce import dependency and align with the Atmanirbhar Bharat and Make in India initiatives. This will empower Indian companies to access advanced technology locally and build a self-reliant ecosystem for the industrial and white goods industries.
A latching relay is a specialized electromechanical switch that maintains its position without a continuous power supply to the coil. Unlike conventional relays, latching relays consume power only during state changes, significantly reducing energy consumption and costs. Sterling Tech-Mobility Limited plans to expand the local manufacturing of electrical components, systems, and relays, strengthening India's industrial supply chain and reducing reliance on imports. This strategic move positions Sterling Tools to capitalize on the growing market and contribute to a sustainable future.
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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.