Multibagger stock rallies over 200% in 1 year, Board declares 100% dividend

During Monday's closing session, Sterling Tools, a small cap company, had a market worth of ₹1,524 Cr. As a producer and supplier of metal and steel pallets, Sterling Tools is a forerunner in establishing a sheet metal assembly manufacturing facility in Karnataka. The shares of Sterling Tools ended on a green note on Monday up by 6% after Board of the company declares 100% dividend.

“ The Board has recommended the Final Dividend of 100% i.e., Rs. 2/- (Rupees Two only) per equity share of Face Value of Rs. 2/- (Rupees Two only) each fully paid up for the Financial Year 2022-23, subject to the approval of shareholders of the Company in the ensuing Annual General Meeting as recommended by the Audit Committee,” said Sterling Tools in a stock exchange filing.

The company has reported a total income of Rs.212.66 crores during the quarter ended March 31, 2023 as compared to Rs.170.09 crores during the quarter ended March 31, 2022, up by 25.03% YoY. The company said its net profit stood at ₹7.77 Cr during Q4FY23 up by 13.00% YoY from ₹6.88 Cr in Q4FY22. The EPS of Sterling Tools reached ₹2.16 during the quarter under review up by 13.09% YoY from ₹1.91 during the year-ago quarter.

The company has reported total income of Rs.774.8781 crores during the financial year ended March 31, 2023 as compared to Rs.512.6097 crores during the financial year ended March 31, 2022, up by 51.16% YoY. Sterling Tools said its net profit stood at ₹47.87 Cr in FY23 up by 87.48% YoY from ₹25.53 Cr in FY22 and its EPS climbed by 87.45% YoY from ₹7.09 to ₹13.29.

On Monday's trading session, Sterling Tools closed on the NSE at ₹424.50 apiece up by 6.98% from the previous close of ₹396.80. In the last 1 year the stock price has risen from ₹134.40 to the current market price logging in a multibagger return of 215.85% and on a YTD basis it has rallied 61.62% so far in 2023. The stock touched a 52-week-high of ₹449.75 on (11-Apr-2023) and a 52-week-low of ₹115.00 on (12-May-2022), indicating that at the current market price, the stock is trading 269.13% above the 1 year low and 5.61% below the recent 1 year high. During Q4FY23, the company reported a promoter shareholding of 65.77%, FIIs stake of 0.06%, DIIs stake of 5.43% and a public stake of 28.73%.