SSWL hits 52-week high

Steel Strips Wheels rose 3.94% to Rs 451.50 at 14:47 IST on BSE after the company said it has secured a contract worth Rs 50 crore from Mahindra Tractors.

The announcement was made during market hours today, 28 December 2015.

Meanwhile, the S&P BSE Sensex was up 202.40 points or 0.78% at 26,041.17.

On BSE, so far 58,000 shares were traded in the counter as against average daily volume of 10,579 shares in the past one quarter.

The stock hit a high of Rs 458 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 437 so far during the day. The stock had hit a 52-week low of Rs 254.50 on 27 March 2015.

The stock had outperformed the market over the past one month till 24 December 2015, surging 17.18% compared with Sensex's 0.24% rise. The scrip had also outperformed the market in past one quarter, jumping 22.3% as against Sensex's 0.1% fall.

The small-cap company has equity capital of Rs 15.26 crore. Face value per share is Rs 10.

Steel Strips Wheels (SSWL) said it has secured a contract from Mahindra Tractors for its new project. It will be an additional order for tractor wheels for domestic market, SSWL said. The total expected volume from this program over a period of 7 years is 3.66 lakh tractor wheels, the company said. The total order value of the program would be Rs 50 crore, SSWL said. Mass supplies are expected from January 2017, it added.

Separately, SSWL during market hours today, 28 December 2015 announced that its board of directors meeting will be held on 15 January 2016, inter-alia, to consider issue of 2.08 lakh equity shares of the company to Kalink Co. (non-promoter category) at Rs 640 per share by way of preferential allotment.

Steel Strips Wheels' net profit rose 28.2% to Rs 15.03 crore on 5.2% decline in net sales to Rs 299.27 crore in Q2 September 2015 over Q2 September 2014.

Steel Strips Wheels designs and manufactures automotive steel wheels since 1991 and is among the leading supplier to Indian and global automobile manufacturers. The company's product range comprises steel wheels for two and three wheelers, passenger cars, multi utility vehicles, tractors, trucks and OTR vehicles.

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