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Rally in SSWL counter continues unabated

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Capital Market
Last Updated : Jan 05 2017 | 3:47 PM IST

Steel Strips Wheels rose 2.67% to Rs 687.45 at 15:19 IST on BSE, with the stock extending Wednesday's rally triggered by the company projecting a 7% growth guidance in its sales volume in Q4 March 2017 over Q3 December 2016.

Meanwhile, the S&P BSE Sensex was up 248.88 points or 0.93% at 26,882.01.

On the BSE, 11,000 shares were traded on the counter so far as against the average daily volumes of 10,659 shares in the past one quarter. The stock had hit a high of Rs 701 and a low of Rs 669.60 so far during the day.

The stock had hit a record high of Rs 775 on 14 October 2016 and a 52-week low of Rs 284 on 17 February 2016. It had outperformed the market over the past one month till 4 January 2017, surging 10.55% compared with the Sensex's 1.53% rise. The scrip had also outperformed the market in past one quarter, advancing 6.77% as against the Sensex's 6% fall.

The small-cap company has equity capital of Rs 15.53 crore. Face value per share is Rs 10.

Shares of Steel Strips Wheels (SSWL) have risen 4.77% in two trading sessions from its close of Rs 656.10 on 3 January 2017, after the company during market hours yesterday, 4 January 2017 issued a 7% growth guidance in its sales volume at 35.6 lakh units in Q4 March 2017 over Q3 December 2016. In response to this announcement, the stock had risen 2.06% to settle at Rs 669.60 yesterday, 4 January 2017.

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The buoyant volume growth guidance for Q4 March 2017 vis-vis preceding sequential quarter is primarily driven by passenger cars and very good growth in tractors and truck segment. The commercial vehicles (CV) segment is witnessing very good demand for Q4 March 2017 and will surely negate the demonetization impact, Steel Strips said. The portfolio growth of heavier wheels is getting into high double digit and will surely give its impact on the financial performance of the company in Q4 March 2017, it added.

From its closing of Rs 551.50 on 26 December 2016, SSWL stock has galloped 24.65% in eight straight trading sessions to its ruling market price.

Net profit of Steel Strips Wheels rose 19.9% to Rs 18.02 crore on 2.8% decline in net sales to Rs 290.95 crore in Q2 September 2016 over Q2 September 2015.

Steel Strips Wheels designs and manufactures automotive steel wheels and is among the leading supplier to Indian and global automobile manufacturers.

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First Published: Jan 05 2017 | 3:11 PM IST

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