Shares of Sterling Tools rose 20% to a four-year high of Rs 351.25 on heavy volume on Wednesday. In the past three trading days, the stock prices of auto parts companies have soared by 38%. It was trading at its highest level since January 2018. In contrast, the S&P BSE Sensex rose 0.1% to 60,180 at 1:18 pm.

Shares of Sterling Tools have soared 66% over the past three months, compared with a 5% gain for the benchmark index. It has more than doubled or gained 203% in the last eight months from Rs 116.05 on May 12, 2022.

In clarifying the increase in the company’s share count, Sterling Tools stated that the rise in the company’s trading volume on the exchange is purely driven by securities market forces and is outside the company’s control.

Sterling Tools is India’s second-largest manufacturer of automotive fasteners. The company is one of India’s largest electric vehicle motor control unit (MCU) suppliers. It entered the electric vehicle (EV) segment in 2020 and is currently one of India’s largest e-2W MCU suppliers. MCUs are one of the most essential components of electric cars, requiring a combination of power electronics, motor control algorithms, and firmware expertise.