Sterling Tools Limited (STERTOOLS.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-88.2%

₹23.68

vs ₹201.03 price

Levered DCF

₹260.78

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.68

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	19.89×	19.9×	22.55×	30.29×	19.13×	29.96×	15.63×	25.33×
P/B	1.11×	2.34×	2.79×	3.62×	1.37×	2.13×	1.56×	4.07×
P/S	0.7×	1.14×	1.34×	1.88×	0.96×	2×	1.32×	2.26×
EV / EBITDA	8.95×	10.73×	11.69×	15.2×	8.96×	12.55×	8.07×	13.39×
Gross margin	42.7%	50.1%	34.0%	14.9%	41.4%	49.7%	17.4%	19.1%
Operating margin	4.4%	7.3%	8.0%	8.5%	7.8%	10.4%	10.9%	13.2%
Net margin	3.5%	5.7%	5.9%	6.2%	5.0%	6.7%	8.5%	8.9%
Current ratio	1.97×	2.14×	2.04×	1.84×	1.94×	2.08×	2.78×	2.24×
Debt / equity	0.28×	0.31×	0.26×	0.33×	0.36×	0.32×	0.24×	0.35×
Interest coverage	3.69×	7.65×	7.91×	7.42×	5.78×	4.94×	6.29×	18.25×
Dividend yield	1.5%	0.6%	0.6%	0.2%	0.7%	0.0%	1.8%	0.8%
Payout ratio	30.8%	12.3%	13.0%	7.5%	14.1%	0.0%	28.5%	19.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	5.6%	11.7%	12.4%	12.0%	7.2%	7.1%	10.0%	16.1%
Return on invested capital	3.2%	8.2%	9.6%	8.7%	5.6%	6.0%	8.0%	10.4%
Return on assets	3.6%	7.4%	7.8%	7.3%	4.5%	4.6%	6.9%	9.9%
Free cash flow yield	1.5%	4.1%	5.8%	2.0%	-5.5%	-0.2%	1.4%	-4.6%
Earnings yield	5.0%	5.0%	4.4%	3.3%	5.2%	3.3%	6.4%	3.9%
Enterprise value	₹6.8B	₹11.8B	₹13.4B	₹15.8B	₹6.1B	₹8.1B	₹5.4B	₹12.4B
Net debt / EBITDA	1.29×	0.07×	0.81×	1.23×	1.83×	1.56×	0.89×	1.03×
Cash conversion cycle (days)	111	103	84	98	121	212	101	74