Over the course of the last three years, shareholders of Steel Strips Wheels Ltd. have seen their investment more than triple. The price of one share of Steel Strips stock, which had finished trading on June 26, 2020, at Rs 43.86, soared to an all-time high of Rs 203.55 on the BSE, representing a gain of 364% over the course of the month. If one had put one lakh rupees into the stock of Steel strip Wheels three years ago, that investment would be worth 4.64 lakh rupees right now. In contrast, the Sensex had an increase of 79.04 percent throughout the same period.
Steel Strips Wheels stock finished the previous session 5.96% higher at Rs 203.55 today compared to its previous closing of Rs 192.10 on BSE. Additionally, it reached an all-time high of Rs. 212 on the BSE. On the BSE, the stock started the day off with a little gain, opening at Rs 192.15.
The relative strength index (RSI) of the stock now sits at 81.1, indicating that it is trading in the overbought zone. This can be deduced from the fact that the stock is trading in the zone. The beta for Steel Strips Wheels shares is 0.9, which indicates that the stock is not very volatile over the course of a year. Shares of Steel Strips Wheels are now trading at a price that is higher than the five, twenty, fifty, one hundred, and two hundred-day moving averages.
The price of the stock has increased by 29.19% over the last year and by 25% so far this year. On the BSE, a total of 3.37 lakh shares of the company changed hands, which resulted in a turnover of Rs 6.90 crore. The value of the company on the market increased to Rs. 3,186 crore.
For the quarter that ended in March 2023, 19 promoters controlled 62.68 percent of the company, while 34,350 public shareholders owned 37.32 percent of the company, which was equivalent to 5.84 crore shares. Out of these, 32,353 public shareholders owned a total of 2.33 crore shares, which was equivalent to 14.90% of the total shareholding and required a minimum investment of 2 lakh. For the quarter that ended in March 2023, a total of just four stockholders had capital of more than two lakh rupees (Rs. 2 lakh).
The net profit of Steel Strips Wheels decreased by 3.26% during the March quarter of the previous fiscal year, coming in at Rs 47.29 crore as opposed to Rs 42.69 crore during the quarter that ended in March 2023.
The revenue for the fourth quarter was down 5.34 percent, coming in at Rs 1011.62 crore, compared to Rs 1068.83 crore for the previous quarter, which concluded in March 2022.
The company’s annual profits for the fiscal year that ended in March 2023 revealed a profit of Rs 193.79 crore, which is a 5.68 percent decrease from the profit of Rs 205.4 crore that was reported for the same time in the previous year.
Despite this, revenue increased by 13.43% for the fiscal year ending in March 2023, reaching a total of 4052.94 crore compared to the previous fiscal year’s total of 3572.98 crore.
ICICIDirect believes that the stock of Steel Strips has an upside potential of 35%.
“We award a BUY rating to SSWL due to the powertrain-agnostic product profile (there is no risk associated with EVs), the good volume growth visibility, the rising percentage of exports and alloy wheels in the total sales mix, and the resulting improvement in margins and return ratios. A further source of solace for us comes from the low prices at which it is offered.
About The Company
Steel Strips Wheels is in the business of producing steel wheel rims and alloy wheel rims, both of which are components found in automobiles and are utilised in their production. Steel wheels, alloy wheels, and hot rolling mills are some of the items that this firm offers. Within the field of steel wheels, the company offers goods such as tubeless wheels, multi-piece wheels, high vent wheels, semi-full face wheels, and weight-optimised (flow-formed) wheels.
