Small-cap stock in which Tata Steel Limited has a stake, engaged in the business of designing, manufacturing, and supplying Steel Wheel Rims and Alloy Wheels jumped 4 percent in the day’s trade upon signing a strategic agreement to supply alloy wheels to one of the top Passenger Vehicle car manufacturers in India.
With a market capitalization of Rs. 3,609 Crores, the shares of Steel Strips Wheels Limited were trading at Rs. 230, up 2.66 percent from its previous day’s close price of Rs. 224.05.
Steel Strips Wheels Limited has inked a strategic supply agreement and successfully secured a maiden entry as a supplier of aluminum alloy wheels to one of the top Passenger Car manufacturers in India.
This milestone is a testament to our unwavering commitment to pushing the boundaries of innovation and delivering unparalleled value to our customers. This reaffirms our strong rapport with our customers and our ability to meet and exceed their aluminum expectations. We’re honored to be recognized by the OEM as a strategic partner for the supply of aluminum wheels besides Steel Wheels, said the company’s filing.
Steel Strips Wheels Limited is engaged in the business of designing, manufacturing, and supplying Steel Wheel Rims and Alloy Wheels for a wide range of domestic and global automobile makers.
Steel Strips Wheels Limited has a domestic market share of 42 percent in Passenger Vehicle, 61 percent in Medium & Heavy Duty Trucks, 42 percent in tractors, 70 percent in over-the-road vehicles, and 30 percent in 2-3 wheelers.
It has a strong customer base with well-known players like Tata Maruti Suzuki, BMW, Land Rover, MG, Ashok Leyland, Escorts, Honda, JCB, John Deere, Escorts, and many others.
Its revenue from operations grew by 18.33 percent from Rs. 938 Crores in Q3FY23 to Rs. 1,110 Crores in Q3FY24 accompanied by profits of Rs. 44 Crores to Rs. 60 Crores.
It has reported a return on equity (ROE) of 18.6 percent and a return on capital employed (ROCE) of 21.4 percent, it is making good returns on its equity and capital employed.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
