Steel Strips Wheels (SSWL) jumps on order win; recovers by around 55 per cent from its 52-week low

Steel Strips Wheels Limited (SSWL) announced of receiving export orders of nearly 57000 wheels for US & EU trailer market. Post announcement, shares of the company witnessed a positive momentum.

The said order is to be executed from its Chennai plant in the month of December. The company further stated that it is expecting to receive more such orders of the similar kind and capacity as the demand is steadily increasing with recovery in business.

Previously, SSWL had bagged exports orders for more than 11,000 wheels from a new US customer, thus indicating increase in new customers of the company.

For Q2FY21, the company reported 11.78 per cent YoY increase in net sales to Rs 404.74 crore while net profit jumped by 82.37 per cent YoY to Rs 14.02 crore.

SSWL commands market leadership in the industry with a market share of around 55 per cent in steel rims and of about 20 per cent in alloy wheels. Thus, the pent up demand in the auto sector is expected to provide an opportunity for SSWL to outperform the industry backed with better capacity utilization as well as increased exports.

On Wednesday, the stock of the company was trading at Rs 503.80, up by 1.24 per cent or Rs 6.15 per share. The 52-week high is Rs 784 and 52-week low is Rs 317.35 on BSE.