Steel Strips Wheels spurts after bagging export order for tractor wheels

Steel Strips Wheels jumped 10.12% to Rs 435.10 at 14:30 IST on BSE after the company said that it has bagged an export order from Siam Kubota Corp for its new project.

The announcement was made during trading hours today, 24 December 2015.

Meanwhile, the BSE Sensex was down 44.54 points, or 0.17%, to 25,805.76.

High volumes were witnessed on the counter. On BSE, so far, 1.22 lakh shares were traded in the counter, compared with an average volume of 8,167 shares in the past one quarter.

The stock hit a high of Rs 448, which is also a 52-week high for the counter. The stock hit a low of Rs 397 so far during the day. The stock 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 23 December 2015, gaining 7.77% compared with Sensex's 0.12% rise. The scrip had also outperformed the market in past one quarter, rising 12.31% as against Sensex's 0.11% rise.

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

Steel Strips Wheels (SSWL) said that the order is for supplying tractor wheels for Siam Kubota Corp's Thailand production facility. These will be the existing wheels supplied from its Dappar plant which will be carried over for a new tractor model of Kubota. The mass supplies of wheels are expected from March 2016. The total expected volume of this order over a period of 5 years is 2.2 lakh tractor wheels. The total order value is $13.5 million.

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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