Steel Strips Wheels Ltd. share price target

We expect the company to post Revenues/EBIDTA/PAT at a CAGR of 34%/43%/139% respectively over FY20-23E. We retain a BUY with a revised target price of Rs 908/share(earlier target Rs 877/share), valuing the company at 4x EV/EBIDTA FY23E, giving an upside of 21% from CMP.

We retain BUY with a revised target price of Rs 877 (earlier target Rs 590) valuing the company at 5x EV/EBIDTA FY23E giving an upside of 32%.

We re-initiate coverage on Steel Strip Wheel Ltd. (SSWL) with a BUY recommendation and price target of Rs 590/- on back of expected volume recovery of automobiles viz., 2W, PVs with personal mobility gaining currency and tractors on back of good Rabi harvest and consecutive normal monsoon.

Quick Research Note

industry (industry size ~ 8,200 crore), with presence in legacy steel wheel rims as well as emerging alloy wheel rims segments Increasing penetration of alloy wheels in PVs and opportunity created by imposition of antidumping duty on Chinese products in the...

COVID 19 IMPACT: EXPORTS TO SUFFER; FY21 TO BE VERY WEAK

Steel Strips Wheels Limited (SSWL) posted revenues of Rs 344 cr (29% Y-o-Y, 5% Q-o-Q) in Q3FY20 with another quarter of dismal performance due to sharp decline in wheel volumes for CV industry (down by ~60% on YoY basis).

Steel Strips Wheels Limited (SSWL) posted revenues of Rs 362 cr (?32% Y-o-Y, ?23% Q-o-Q) in Q2FY20 due to very sharp decline in volumes for CV industry

Steel Strips Wheels Limited (SSWL) posted revenues of Rs 470 Cr. (?6% Y-o-Y, ?10.6% Q-o-Q) in Q1FY20 due to sharp decline in volume. The EBITDA margins compressed by 91 bps Y-o-Y, but improved slightly Q-o-Q (? 109 bps) due to rise in share of exports and alloy wheels

Steel Strips Wheels Limited's (SSWL) posted revenues of Rs 527 Cr. (? 22% Y-o-Y, ?9% Q-o-Q) in Q4FY19. The EBITDA margins compressed by 237bps YoY due to rise in raw material cost and negative operating leverage while PAT was reported at Rs 19.9 Cr.