Ravi Bhatt
3 Oct • 8:30 PM · SEBI-Registered Analyst
STEEL STRIPS WHEELS LTD FUNDAMENTAL REPORT
Steel Strips Wheels Ltd
(NSE: SSWL, BSE: 513262), Chandigarh, incorporated 1985, is one of India’s largest manufacturers of
automotive wheels
- steel wheel rims and, increasingly,
alloy/aluminium wheels and aluminium knuckles
- supplyingpassenger vehicles, commercial vehicles, tractors, OTR and two/three-wheelers, domestic and export. The investment storyis a
mix transformation
: a steady steel-wheel base funding a fast-growing aluminium franchise.
Event 1 - three record months in a row.
The company fi les a sales update on the fi rst of every month. Net turnover:
July Rs571.05 Cr (+50.7% YoY), August Rs 592.92 Cr (+53.6%), September Rs 625.81 Cr (+52.4%)
- each the highest month in itshistory. Together:
Rs 1,789.78 Cr for Q2 FY27 against Rs 1,175.45 Cr a year ago (+52.3%)
and roughly +20% over the recordQ1 (Rs 1,510 Cr consolidated). Aluminium grew 73% (Aug) and 82% (Sep) by value; exports 63% and 54%.
Event 2 - the quality of that growth is the open question.
Value is growing about twice as fast as volume (September: +52%value vs +22% volume; July: +51% vs +26%). Part of the gap is richer mix (aluminium, larger export wheels); part isaluminium and steel prices passed through to customers, which lifts revenue but not necessarily profi t. Q1 FY27 PAT was
Rs69.45 Cr (+47% YoY)
on a 10.8% operating margin. Q2 results (date not yet announced; trading window closed 01-Oct) willshow how much of the +52% reaches the bottom line.
Event 3 - the promoter keeps buying, with nothing pledged.
