Steel Strips Wheels gains on overseas contract

Steel Strips Wheels gained 2.31% to Rs 172.50 at 12:40 IST on BSE after the company said it has bagged an export order worth Rs 110 crore from Renault, France for supply of one million steel wheel rims over five years.

The stock hit a high of Rs 179 and a low of Rs 171 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 126.10 on 19 March 2008.

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

The current price of Rs 172.50 discounts its Q3 December 2007 annualized EPS of Rs 12.88, by a PE multiple of 13.39.

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

Steel Strips Wheels expects its exports to grow over 200% in financial year (FY) 2008-09 and hopes to cross export of 4.25 lakh wheels rims in FY 2008-09.

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.

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