ICRA reaffirms Sterling Tools Ltd.'s Long-Term Rating with revision in Outlook from Stable to Positive

Sterling Tools Limited, a leading automotive fastener manufacturer in India, has been awarded the long-term rating of [ICRA]AA- (Positive) by ICRA Limited. The outlook has been revised from Stable to Positive. This upgrade is driven by STL’s strong credit profile and robust growth in the electric vehicle (EV) components segment. Sterling Gtake E-mobility Limited, wholly owned subsidiary, has gained a significant early-mover advantage in the EV sector, particularly in supply chain management and technical expertise. SGEM has recorded 40% of the market share in the high-speed scooter segment and achieved an overall share of 30% in the electric two-wheeler (e-2W) segment in FY 2024. The Government’s focus on promoting EVs is also supporting to SGEM’s revenue prospects.