We recently met the management of Wheels India (WIL) to understand its business model. WIL is a part of the TVS group (holding 40.8%) and is among the largest steel wheel rims manufacturers in the world. It has an aggregate capacity of >15 mn wheels & caters to CV (accounting ~28% of sales), PV (~21% of sales) & tractors (~15% of sales). Despite the increasing trend of cast aluminium wheels in PV space, the management believes that the margins & ROI generated on them are not attractive. However, the management believes that forged aluminium wheels have...

Buy Steel Strips Wheels India Ltd CMP at Rs.345 and add on dips to Rs.300 - Rs.315 for the target of Rs.402 - Rs.430

40% Market share in India: Wheels India (WIL) is a leading manufacturer of steel wheels in India with ~40% market share in the domestic 4W industry. Currently TVS group holds 40% stake in company followed by Titan Europe...