Buy Sterling Tools with a target of Rs 1207: Motilal Oswal Securities

Motilal Oswal Securities has a buy call on Sterling Tools Ltd. with a target price of Rs 1207 . The current market price of Sterling Tools Ltd. is Rs 988.55 . Time period given by the analyst is a year when Sterling Tools Ltd. price can reach defined target.
Sterling Tools is one of the largest manufacturers of fasteners in India with a market share of 28 per cent. The company is the supplier of high-tensile (HT) fasteners to Honda Motorcycle Scooter India Private (HMSI) and Maruti Suzuki India.
STL has a capacity of 45,000 MT spread across three plants currently running at 70-75 per cent utilisation. The company has started work on the phase-I expansion for a new plant in Gujarat.