Nirmal Bang has recommended hold rating on Steel Strips Wheels with a target of Rs 250 in its July 9, 2010 research report.
"We expect the Steel Strips Wheels' sales and profitability to witness a robust growth over next couple of years. We will revisit our FY 2012 estimates to include the impact of order from AUDI once the company announces its Q1 FY11 results. We expect the company to earn an EPS of Rs 20.91 in FY 2011. At the CMP of Rs 196 per share, SSWL is currently trading at a PE of 9.37x FY11E and looks fairly attractive. We initiated coverage on SSWL on 31 May 2010 at Rs 133 with a buy rating and a target price of Rs 250, indicating a potential upside of 88%. Since then the stock has appreciated 47.3%. We continue to remain positive on the stock and recommend to hold the stock for a target of Rs 250 and suggest buying on dips," says Nirmal Bang research report.
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