Steel Strips Wheels hits new high on export order

Thus far in October, the stock outperformed the market by surging 29% as compared to 1.2% rise in Nifty 50.

Steel Strips Wheels (SSWL) has moved higher to its new high of Rs 748, up 6.5% on the National Stock Exchange (NSE) after the company said it has bagged an export order for supply of Caravan Steel wheels for EU Trailer market.

“Total order is for supplying approximately 115,000 wheels in a period of six months. Orders will be executed from SSWL's Chennai plant with shipments starting from November 2016,” SSWL said in a press release.

This order marks strong presence of SSWL in the extremely competitive EU Caravan wheels market complimenting the strategy that was formulated a year back. SSWL is expecting to receive additional orders for the Caravan wheels from other EU customers in coming weeks.

Thus far in October, the stock outperformed the market by surging 29% after the company said it achieved 11% year on year growth in its total wheel rim sales to 1.21 million in September 2016 as compared to 1.09 million in September 2015. The Nifty 50 index gained 1.26% in past six trading sessions.

SSWL said, the tractor and passenger segment did extremely good and expected to trend the same path in third quarter of 2016-17.

Till 10:31 am, a combined 70,691 shares changed hands on the NSE and BSE.