Steel Strips Wheels gets second export order in two days; stock rises
On Thursday, shares of Steel Strips Wheels Limited were seen trading with a nearly 2 per cent gain on BSE upon securing yet another export order. This positive movement is amid the weak market sentiments and benchmark index that is down by nearly 1 per cent.
The company reported that it has secured a 13,000 wheels export order for EU caravan trailer & US mobile home market, which is to be executed in the plant in Oragadam, Chennai having capabilities of wheels for cars and MUVs. This is the second order received by the company within two days after its Wednesday order which included 20,000 wheels for US & EU caravan trailer market. The plant in Chennai is fully equipped with a total capacity of 6 million wheels. Thus, such an incoming order reflects good revival of the company in post-COVID times.
Moreover, this development in cars segment comes on the back of recent commentary from the company of double digit growth expectation in tractor segment. They had reported anticipation of robust farm segment activity which would result in capacity utilization rates touching levels of 105 to 107 per cent. The stock has already taken note of the order intakes and production activities as its price has gained 35 per cent since May 17 till date as against 7 per cent fall between March 23 and May 17, 2020.
The stock of the company is trading higher by 1.5 per cent, at Rs 436 on BSE, at 12.30 pm on Thursday.