Positive Financial Performance for Sterling Tools in Q2 FY25, with Strong Operating Cash Flow and Net Sales

Sterling Tools, a smallcap company in the fasteners industry, has recently declared its financial results for the quarter ending September 2024. According to the report, the company has shown very positive performance in this quarter, with a score of 24, up from 22 in the previous quarter.

One of the key factors contributing to this positive performance is the company’s operating cash flow, which has been consistently growing over the past three years and was at its highest at Rs 101.63 crore in the last fiscal year. Additionally, the net sales for the quarter were also at their highest at Rs 283.98 crore, showing a positive trend in the near term.

The operating profit (PBDIT) for the quarter was also at its highest at Rs 32.20 crore, with a positive trend in the near term. The profit before tax (PBT) and profit after tax (PAT) also showed significant growth of 46.23% and 45.5% respectively, compared to the same quarter last year.

However, there are some areas where Sterling Tools needs to improve, such as its debtors turnover ratio, which has been at its lowest in the last five half yearly periods. The company’s dividend payout ratio has also been consistently low in the last five years.

Overall, Sterling Tools has shown a strong financial performance in the quarter ending September 2024, with positive trends in key areas. The stock call for the company by MarketsMOJO is ‘Hold’, indicating a neutral stance for investors.