Rs 39 to Rs 164: This wheel stock turned into a multibagger in three years

Shares of auto wheels maker Steel Strips Wheels Ltd have rallied over 300% in the last three years. The smallcap stock, which closed at Rs 39.51 on April 30, 2020 rose to a high of Rs 164 on the BSE today, amounting to a rally of 315% during the period. An amount of Rs 1 lakh invested in the shares of Steel Strips Wheels three years ago would have turned into Rs 4.15 lakh today. In comparison, Sensex has risen 82.12 per cent during the period.

In the current session, Steel Strips Wheels stock fell 2.11% to Rs 157.9 today against the previous close of Rs 161.30 on BSE. It also hit an intraday high of Rs 164. Earlier, the stock opened higher at Rs 163.35 on BSE. It hit a 52 week high of Rs 189.39 on April 29, 2022 and a 52 week low of Rs 126.20 on January 30, 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 61.1, signaling it's trading neither in the overbought zone nor in the oversold zone. Steel Strips Wheels shares have a beta of 1, indicating average volatility in a year. Steel Strips Wheels shares are trading higher than the 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.

The stock has lost 14.05% in a year and declined 0.72% this year. Total 5266 shares of the firm changed hands amounting to a turnover of Rs 8.48 lakh on BSE. Market cap of the firm fell to Rs 2469 crore.

19 promoters held 62.68 per cent stake in the firm and 34,350 public shareholders owned 37.32 per cent or 5.84 crore shares for the quarter ended March 2023. Of these, 32,353 public shareholders held 2.33 crore shares or 14.90% stake with capital up to Rs 2 lakh. Only four shareholders with 1.38% stake held capital above Rs 2 lakh for the quarter ended March 2023.

In the December quarter of last fiscal, net profit of Steel Strips Wheels rose 2.53% to Rs 43.77 crore against Rs 42.69 crore during the quarter ended December 2021. Sales rose 9.05% to Rs 938.44 crore in Q3 against Rs 860.52 crore during the quarter ended December 2021.

According to annual earnings for the fiscal ended March 2022, the firm reported a strong 317.18 per cent rise in profit to Rs 205.46 crore against a profit of Rs 49.25 crore in the year ago period. Losses for March 2020 fiscal stood at Rs 23.45 crore.

Sales zoomed 103.49% to Rs 3559.95 crore in the March 2022 fiscal against Rs 1749.42 crore for the fiscal ended March 2021. Sales for the fiscal ended March 2020 stood at Rs 1563.34 crore.

About the Company

Steel Strips Wheels is engaged in the business of manufacturing steel wheel rims and alloy wheel rims which are used in automotive vehicles. The company's products include steel wheels, alloy wheels and hot rolling mill. Its products under the steel wheel category include tubeless, multi-piece, high vent wheels, semi-full face and weight-optimized (flow formed).