 "Steel Strips Wheels up 4% on bagging deal worth Rs 136 cr from European co")
Shares of Steel Strips Wheels gained up to 3.75 per cent at Rs 207 per share on the BSE in Friday’s intraday trade. Steel Strips Wheels share price surged after the company secured an export order worth Rs 132 crore from Europe based original equipment manufacturer (OEM).
“It is informed that the Company has received nomination for Steel wheel business from a leading European OEM. The Business value is close to Euro 15 Million which will be executed over a span of 6 years. Series supplies are expected to commence from the end of the calendar year 2026,” the company said in an exchange filing on Friday.
Steel Strips Wheels further said that it expects more businesses from Global OEMs in coming months which complements its strategy to grow its presence in the European market.
Steel Strips Wheels (SSWL) specialises in designing, manufacturing, and supplying steel and alloy wheels for a wide range of vehicles, including two and three-wheelers, passenger cars, multi-utility vehicles (MUVs), tractors, trucks, and more.
The company operates state-of-the-art production facilities located in Dappar (Punjab), Oragadam (Chennai), Jamshedpur (Jharkhand), Mehsana (Gujarat), and Saraikela (Jharkhand).
SSWL has established strategic partnerships with leading global firms such as Tata Steel, Nippon Steel, Sumitomo Metal Corporation, and Ring Techs Co., reinforcing its position as a key player in the automotive wheel industry.
Financially, SSWL reported a revenue from operations of Rs 1,095 crore in the second quarter of financial year 2024-25 (Q2FY25), reflecting a 3.3 per cent year-on-year fall from Rs 1,133 crore in Q2FY24. Profit After Tax (PAT) decreased by 4.2 per cent, standing at Rs 50.2 crore in Q2FY25, compared to Rs 52.4 crore in Q2FY24.
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Meanwhile, on the equities side, Steel Strips’s stock has underperformed the market, as in the last six months it has slipped 9 per cent, while falling 22 per cent in the last one year. In comparison BSE Sensex has risen 2 per cent in the last six months and 12 per cent in a year.
The company has a total market capitalisation of Rs 3,181.74 crore. Its shares are trading at a price to earnings multiple of 14.71 times and at an earning per share of Rs 13.78.
At 1:09 PM; the shares of the company were up 1.45 per cent at Rs 202.40 a piece. By comparison, the BSE Sensex was trading 0.94 per cent lower at 78,470.94 level.