Multibagger wheel stock hit record high; crossed Rs 200 mark for first time

Shares of multibagger Steel Strips Wheels Ltd have rallied over 350% in the last three years. Steel Strips stock, which closed at Rs 43.86 on June 26, 2020 rose to a high of Rs 203.55 on the BSE, amounting to a rally of 364% during the period. An amount of Rs 1 lakh invested in the shares of Steel Strips Wheels three years ago would have turned into Rs 4.64 lakh today. In comparison, Sensex has risen 79.04 per cent during the period. 

In the previous session, Steel Strips Wheels stock ended 5.96% higher at Rs 203.55  today against the previous close of Rs 192.10 on BSE. It also hit a record high of Rs 212 on BSE. Earlier, the stock opened marginally higher at Rs 192.15 on BSE.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 81.1, signaling it's trading in the overbought zone. Steel Strips Wheels shares have a beta of 0.9, indicating low volatility in a year. Steel Strips Wheels shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

The stock has gained 29.19% in a year and risen 25% this year. Total 3.37 lakh shares of the firm changed hands amounting to a turnover of Rs 6.90 crore on BSE. Market cap of the firm rose to Rs 3186 crore.  

19 promoters held 62.68 per cent stake in the firm and 34,350 public shareholders owned 37.32 per cent or 5.84 crore shares for the quarter ended March 2023. Of these, 32,353 public shareholders held 2.33 crore shares or 14.90% stake with capital up to Rs 2 lakh. Only four shareholders with 1.38% stake held capital above Rs 2 lakh for the quarter ended March 2023.  

In the March quarter of the last fiscal, net profit of Steel Strips Wheels fell 3.26% to Rs 47.29 crore against Rs 42.69 crore during the quarter ended March 2023.  

Sales fell 5.34% to Rs 1011.62 crore in Q4 against Rs 1068.83 crore during the quarter ended March 2022.  

 According to annual earnings for the fiscal ended March 2023, the firm reported a 5.68 per cent fall in profit to Rs 193.79 crore against a profit of Rs 205.4 crore in the year ago period.  

 However, sales zoomed 13.43% to Rs 4052.94 crore in the March 2023 fiscal against Rs 3572.98 crore for the fiscal ended March 2022.  

ICICIDirect has assigned a 35% upside to the Steel Strips stock.  

“We assign BUY rating to  SSWL amid powertrain agnostic product profile (no EV risk), healthy volume growth visibility, increasing share of exports & alloy wheel in overall sales mix, consequent rise in margins &return rations. We  also  derive  comfort  from  its inexpensive  valuations (

 

About the Company 

 Steel Strips Wheels is engaged in the business of manufacturing steel wheel rims and alloy wheel rims which are used in automotive vehicles. The company's products include steel wheels, alloy wheels and hot rolling mill. Its products under the steel wheel category include tubeless, multi-piece, high vent wheels, semi-full face and weight-optimized (flow formed). 

 

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