Steel Strips Wheels almost doubles in a year on consistent order win
The shares of Steel Strips Wheels Ltd (SSWL) have gained by approximately 95 per cent in the last one year. SSWL is a leader in designing & manufacturing automotive wheels, both under the steel & alloy category.
One of the reasons for this surge is the consistent inflow of orders throughout the year. Recently, it has won export orders of close to 4,00,000 wheels for US & EU Caravan Trailer market, US Mobile Home, and US Truck Trailer market worth Rs 42 crore. It will complete its execution by early July 2021 from its Chennai (Tamil Nadu) and Dappar (Punjab) plants.
The company has achieved the highest-ever wheel rim sales of 16.73 lakh in March 2021 as against 7.88 lakh in March 2020, representing a growth of 112.44 per cent YoY. In terms of segments, truck wheel sales volume grew by 497 per cent YoY, exports wheel sales volume grew by 221 per cent YoY, passenger car wheels volume grew by 93 per cent YoY, tractor wheels volume grew by 57 per cent YoY while 2 & 3-wheelers wheels volume grew by 28 per cent YoY.
By the end of December 2020, the promoters’ holding stood at 62.77 per cent, of which, 45.03 per cent holding was pledged. On April 3, 2021, 6,00,000 shares were released from the pledge, which reduced the promoters’ holding pledge to 38.91 per cent.
On Wednesday, the stock of SSWL was trading 1.2 per cent higher at Rs 742.30 from its previous close of Rs 733.75 on BSE.