Sterling Tools jumps after signing business collaboration agreement

Sterling Tools surged 9.5% to Rs 253 at 11:55 IST on BSE, after the company signed a business collaboration agreement with Japan-based Meidoh Co.

The announcement was made during market hours today, 12 April 2017.

Meanwhile, the S&P BSE Sensex was down 175.22 points, or 0.59% to 29,613.13

On BSE, so far 43,000 shares were traded in the counter as against an average daily volume of 11,012 shares in the past one quarter. The stock hit a high of Rs 261.85 in intraday trade so far, which is record high for the counter. The stock hit a low of Rs 230.30 so far during the day. The stock had hit a 52-week low of Rs 86.20 on 2 June 2016.

The stock had outperformed the market over the past one month till 11 April 2017, rising 12.46% compared with 2.91% rise in the Sensex. The scrip also outperformed the market in past one quarter, gaining 17.49% as against Sensex's 9.76% rise.

The small-cap company's equity capital is Rs 6.84 crore. Face value per share is Rs 2.

Sterling Tools said that the company has signed a business collaboration agreement with a Japan-based Meidoh Co. The company has signed share subscription agreement with Meidoh Co and has accordingly approved the proposal to issue 18.01 lakh shares on preferential basis to it at Rs 246.60 per share.

Sterling Tools' net profit rose 85.69% to Rs 12.59 crore on 1.32% rise in total income to Rs 87.28 crore in Q3 December 2016 over Q3 December 2015.

Sterling Tools is engaged in the manufacturing and marketing of high tensile cold forged fasteners. Over the years, it has become one of the leading OEM suppliers in India with a client base that spans leading automotive companies in India, Europe and USA.

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