Since May 13, the stock has zoomed 111 per cent from a level of Rs 123.20. With this, the stock hit its highest level since May 2019 in the intra-day trade today. The stock had hit a record high of Rs 478 on December 8, 2017.
STL is the second largest automotive fastener manufacturer in India. The company enjoys a healthy share of business (SOB) with leading automotive original equipment manufacturers (OEMs) in India, including Maruti Suzuki India, Honda Motorcycles and Scooters India, Tata Motors and Ashok Leyland.
STL, recently, entered the electric vehicle (EV) space through a partnership with Jiangsu Gtake to manufacture Motor Control Units (MCUs) – now one of the largest MCU companies in India. Sterling Gtake E-mobility (SGEM) is a Joint Venture between Sterling Tools, one of leading automotive fasteners manufacturers in India and Jiangsu Gtake Electric Co., China. SGEM has been at the forefront of EV value chain by offering localized MCUs for battery & hybrid electric vehicles in India.
The company caters to multiple OEMs across the automotive spectrum, with healthy SOB with most leading OEMs and limited dependence on a single customer. Its largest customer accounted for nearly 20 per cent of its FY2021 revenues, while its top five customers contributed less than 55 per cent. STL’s well-diversified revenue profile, coupled with healthy market position with major automotive OEMs, augurs well for its business prospects over the medium term.
Meanwhile, in July 2021, SGEM had bagged an order worth Rs 60 crore from a leading electric two-wheeler maker for high-speed electric two-wheeler application and has also secured a follow-up order for Rs 100 crore from the same customer. It has also secured orders from 10 other EV OEMs.
As on May 31, 2022, the order book stands at Rs 175 crore, all of which will be executed in FY23, STL said in an exchange filing.
"SGEM is in advanced stages of discussions with an additional 30 automobile (EV) OEMs for their MCU requirements for different vehicle segments. Currently the company’s production supplies are to electric scooter manufacturers, in FY23 the company will however also start production supplies to Electric 3W, motorcycle and LCV customers," the company said.
The company further added that it envisages a capex of Rs 50 crore over the next couple of years. Current capacity of 300,000 units is being further enhanced to cater to additional demand and an Engineering Centre has been established in Bangalore to accelerate domestic development of MCUs, it said.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app