Steel Strips Wheels Ltd forecasts strong topline growth; awaits FY20 results

Riding high on consistent order booking from export customers, Steel Strips Wheels Ltd (SSWL) has guided for nearly 300 per cent YoY growth revenue for its Mehsana plant (Gujarat) during the current fiscal year.

The company has been in news for continuous reporting of new orders. The export orders for over 1,45,000 and 8,200 wheels in the US as well as in Chennai (India), respectively, along with 16,000 wheels in Europe, etc have been few of its orders that SSWL has received this month. These orders have given a very clear and strong growth trigger for the annual topline of the company. The management in its recent press release stated that its revenue would come around Rs 325 crore. Its 1 million alloy wheel sales would make this possible in the current financial year.

The company has a total of four plants situated in Punjab, Chennai, Jamshedpur, and Mehsana. The order booking momentum gives visibility to FY24-25. With a total capacity of nearly 3 million wheels, the company looks at the volume growth as its way ahead to meet the plant's commitment in FY21.

Interestingly though, the company is yet to report its Q4FY20 as well as FY20 financial numbers. The company notified about its board meeting cancellation via an exchange filing made on June 25, 2020. This might be the reason for a range-bound trend in the stock price. Since, April 17, 2020, to date, despite positive comments from the company, the stock price has appreciated just 2 per cent on BSE.