Steel Strips Wheels in top gear on surge in sales

Steel Strips Wheels surged 5.97% to Rs 164.95 at 10:45 IST on BSE after the company said on Monday, 3 March 2008 its sales jumped 30% to 5.01 lakh wheel rims in February 2008 over February 2007.

The company made this announcement during trading hours, on Monday, 3 March 2008, when the stock declined 0.80% to Rs 155.65.

Meanwhile, BSE Sensex was up 24.59 points or 0.15% to 16,702.47.

On BSE 200 shares were traded in the counter. The scrip had an average daily volume of 11,665 shares in the past one quarter.

The stock hit a high of Rs 164.95 and a low of Rs 164.95 so far during the day. The stock had a 52-week high of Rs 256.25 on 2 January 2008 and a 52-week low of Rs 147 on 17 October 2007.

The mid-cap scrip had outperformed the market over the past one month till 3 March 2008, declining 8.76% compared to the Sensex’s fall of 8.58%. It had also outperformed the market in the past one quarter, declining 5.06% compared to Sensex’s decline of 14.60%.

The company’s current equity is Rs 12.56 crore. Face value per share is Rs 10.

The current price of Rs 164.95 discounts Q3 December 2007 annualized EPS of Rs 12.88 by a PE multiple of 12.81.

Steel Strips Wheels also achieved a 25.5% surge in its production to 4.86 lakh in February 2008 over February 2007.

In January 2008, the company bagged an export order worth Rs 75 crore from PSA Peugeot Citroen, France for supplying 13.75 lakh steel wheel rims.

On 18 December 2007, Steel Strips Wheels received an export order from PSA Peugeot Citroen, Europe for supplying 15,000 steel wheel rims.

On 28 November 2007, the company secured an export order for tractor wheel rims from Kubota, Japan, a globally renowned manufacturer of tractors.

Steel Strips Wheels’ net profit rose 30% to Rs 3.64 crore on 33.3% growth in net sales to Rs 64.12 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing wheel rims. The company caters largely to the two-wheeler industry.