Steel Strips Wheels surges on expectation of higher sales

In January 2013, the company is expected to achieve sale of 830,000 steel wheel rims, against 765,000 sales in December 2012.

Steel Strips Wheels has surged 11% to Rs 208 after the company said that it is expected to report higher sales of more than 800,000 steel wheel rims in the current month compared to the previous month.

“In January 2013, the company is expected to achieve sale of 830,000 steel wheel rims,” Steel Strips Wheels said in a statement.

The company has achieved sale of 765,000 steel wheel rims during the month of December, 2012 as against 935,000 steel wheel rims in the same month of previous year.

“Due to the overall recession in the 4 wheeler industry, week sentiments for passenger vehicles as well as commercial vehicles, high interest rates and slower economic growth, sale of almost all OEM manufactures witnessed downfall, which affects the performance of the company in December 2012,” it added.

 

The stock opened at Rs 187 and touched high of Rs 210 on the NSE. Total 142,247 shares have changed hands on the counter till early noon deals against an average sub 50,000 shares that were traded daily in past two weeks on the NSE and BSE.