Steel Strips Wheels gains after winning order

Steel Strips Wheels rose 1.41% to Rs 519 at 15:01 IST on BSE after the company said that it bagged an export order for supplying Caravan Steel wheels for trailer market.

The announcement was made during trading hours today, 25 November 2016.

Meanwhile, the BSE Sensex was up 427.07 points, or 1.65%, to 26,287.24.

On BSE, so far 7,725 shares were traded in the counter, compared with average daily volume of 10,177 shares in the past one quarter. The stock hit a high of Rs 546.25 and a low of Rs 511 so far during the day. The stock hit a record high of Rs 775 on 14 October 2016. The stock hit a 52-week low of Rs 284 on 17 February 2016. The stock had underperformed the market over the past 30 days till 24 November 2016, falling 24.16% compared with the 7.10% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 10.41% as against Sensex's 6.92% decline.

 

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

Steel Strips Wheels (SSWL) said the total order is for supplying approximately 20,000 wheels. Orders will be executed from SSWL's Chennai plant with shipments starting from December 2016. This is a repeat order from the export customer.

The company has also bagged an order to supply wheels to BMW India. The total order size is 18,000 wheels and the order will start for mass supplies from March 2017 from the company's Chennai facility.

This order marks strong competence of SSWL in both export and high end segments of the market. SSWL is expecting to receive additional orders for the Caravan wheels from other European Union (EU) customers in coming weeks.

Net profit of SSWL 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.

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

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