Moneycontrol
Jun 15, 2017 04:24 PM IST | Source: Moneycontrol.com

Buy Steel Strips Wheels; target of Rs 1061: Axis Direct

Axis Direct is bullish on Steel Strips Wheels has recommended buy rating on the stock with a target price of Rs 1061 in its research report dated June 12, 2017.

 
 
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Axis Direct's research report on Steel Strips Wheels


Steel Strips Wheels Limited’s (SSWL) in 4QFY17 posted revenues of Rs 380 Cr. (up 23% Y-o-Y, up 13% Q-o-Q) led by higher wheels volume growth observed in CVs due to strong pre-buying of BS3 vehicles, Tractors ahead of monsoon as well as consistent growth in passenger vehicles.


Outlook


SSWL is well positioned in the industry owing to its increasing market share, strong entry barriers in wheels manufacturing, sticky clientele, production at new commissioned backward integration plant, expansion of CV base in Chennai and foray into alloy wheels segment. We value SSWL at 14x FY19E given the growth prospects to arrive at a price target of Rs 1061 (14% Upside).


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