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Sterling Tools, Yongin Electronics partner for EV production; stock up 11%

Notably, the stock has zoomed 11.32 per cent in the past month, outperforming S&P BSE SmallCap index, which jumped 9.22 per cent during the same period

Automobile investments

SI Reporter New Delhi

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Automotive fastener manufacturer Sterling Tools shares zoomed as much as 11.18 per cent to hit an intraday high of Rs 374.40 per share on Thursday, BSE data showed. 

Notably, the stock has zoomed 11.32 per cent in the past month, outperforming S&P BSE SmallCap index, which jumped 9.22 per cent during the same period. 

The surge in Sterling Tools shares came after the company, through its subsidiary, signed a memorandum of understanding (MoU) with South Korea-based Yongin for electric vehicle (EV) components facility.

Yongin is a major supplier of components to the Hyundai Kia Motor Group. Yongin manufactures electronic components like transformers, AC/DC reactor, coil & choke, EMI filter board, and high current DC connector among others.

Sterling Tools is eyeing a revenue of Rs 250 crore by financial year 2030 from this deal, the company said in a statement. 

That apart, the MoU will boost Sterling Tool’s capability to provide solutions for EV & Hybrid space, as well as other automotive applications, incorporating the latest technology from Yongin. 

Set up in 1979, Sterling Tools manufacture high tensile and cold forged hi-tensile fasteners catering to the passenger cars, two wheelers, commercial vehicles, agri-equipment and construction equipment segments. 

The 52-week high of the stock is Rs 437.30 apiece while its 52-week low is Rs 339.85 apiece. As of 10:45 am, shares of Sterling Tools were trading 6.40 per cent higher at Rs 358.30 per share.

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First Published: Apr 18 2024 | 11:06 AM IST

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