The shares of this leading wheel manufacturer gained up to 3 percent after the company received approval from a law tribunal for the acquisition of AMW Autocomponent Ltd worth Rs 138.15 crore.
With a market capitalization of Rs 4,039.36 crore, the shares of Steel Strips Wheels Ltd were trading around at Rs 257.40 per share, increasing around 0.68 percent as compared to the previous closing price of Rs 255.65 apiece.
According to the company filing, Steel Strips Wheels Ltd received approval from a National Compay law tribunal, Ahmedabad (NCLT) for the acquisition of AMW Autocomponent Ltd. SSWl has invested Rs 138.15 crore in AACL, including Rs 5 crore in equity, and an inter-corporate loan of Rs 133.15 crore.
Looking at Steel Strips Wheels Ltd’s performance, revenue climbed by 5 percent, from Rs 1,081 crore in Q2FY23 to Rs 1,134 crore in Q2FY24. During the same period, net profit declined by 5 percent, from Rs 55 crore to Rs 52 crore.
Steel Strips Wheels Ltd operates a four-wheel facility with a wheel capacity of more than 25 million, including 20 million steel and 3 million alloy wheels. The company’s five-year CAGR for sales and PAT are 15 percent and 19 percent, respectively.
Furthermore, by the end of FY24, 70 lakhs of steel wheel capacity will be added in a phased manner following the purchase of AMW Auto Components Limited, and alloy wheel capacity will be enhanced by 60 percent, or 18 lakh wheels, at the Mehsana plant in Gujarat.
The firm has a market share of 45 percent in passenger vehicles, 53 percent in MHCVs, 44 percent in tractors, and 30 percent in two-three-wheelers in the steel wheel category.
Steel Strips Wheels Ltd’s recent shareholding pattern, The Promoters of the company own 62.27 percent while Retail shareholders own a 29.44 percent stake in the company and Foreign Institutional Investors own a 6.05 percent stake.
Steel Strips Wheels Ltd is engaged with designs, produces, and provides steel wheel rims and alloy wheels to a wide range of local and international vehicle manufacturers.
Written by:- Abhishek Singh
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