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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Steel Strips Wheels Ltd

About the Company - Steel Strips Wheels Ltd

Steel Strips Wheels Ltd. is a Public Limited Listed company incorporated on 28/02/1985 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L27107PB1985PLC006159 and registration number is 006159. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 3559.95 Cr. and Equity Capital is Rs. 15.61 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Dr. Trans & Steer - WheelsVillage Somalheri/Lehli, Mohali Punjab 140506ssl_ssg@glide.net.in
http://www.sswlindia.com
Management
NamePosition Held
Mr. Rajender Kumar GargChairman & Non-Exe.Director
Mr. Dheeraj GargManaging Director
Mr. Andra Veetil UnnikrishnanDeputy Managing Director
Mr. Manohar Lal JainExecutive Director
Mr. Sanjay GargNon Exe.Non Ind.Director
Mrs. Deva Bharathi ReddyInd. Non-Executive Director
Mr. Siddharth BansalInd. Non-Executive Director
Mr. Surinder Singh VirdInd. Non-Executive Director
Mr. Sanjay Surajprakash SahniNominee Director
Mr. Shashi Bhushan cuptaInd. Non-Executive Director
Mr. Ajit Singh ChathaInd. Non-Executive Director
Mr. Virander Kumar AryaInd. Non-Executive Director

Steel Strips Wheels Ltd. Share Price Update

Share PriceValue
Today₹257.95
Previous Day₹258.40

Basic Stock Data of Steel Strips Wheels Ltd

Market Cap 3,960 Cr.
Current Price 252
High / Low299/139
Stock P/E19.2
Book Value 78.0
Dividend Yield0.39 %
ROCE21.4 %
ROE18.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Steel Strips Wheels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wheels India Ltd 1,439 Cr. 598855/43232.7 3281.18 %10.8 %7.22 % 10.0
Industry Average1 Cr59832.73281.18%10.8%7.22%10

Steel Strips Wheels Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5257006789588611,0631,0161,0819381,0051,0441,1341,110
Expenses4596145808217549529079648318969311,009994
Operating Profit668698137107111109117108108113124117
OPM %12%12%14%14%12%10%11%11%12%11%11%11%11%
Other Income4624250427432
Interest20192024221918212223242625
Depreciation18191820201920202020222222
Profit before tax31546397667871806873717971
Tax %7%18%19%35%35%38%32%32%35%35%33%34%16%
Net Profit29455163434948554447485260
EPS in Rs1.842.863.274.032.733.133.083.492.803.023.043.353.79

Steel Strips Wheels Ltd Quarterly Chart

Steel Strips Wheels Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9539681,0561,1481,1771,3301,5182,0411,5631,7493,5604,0414,293
Expenses8598739571,0411,0311,1651,3181,7951,3921,5463,1073,5983,831
Operating Profit939599108145165200246171204453443463
OPM %10%10%9%9%12%12%13%12%11%12%13%11%11%
Other Income10111921192013172216131216
Interest28304141435164938984858497
Depreciation43505338424853627272778087
Profit before tax332725497986971093364304291293
Tax %13%6%3%19%23%35%23%24%28%23%32%33%
Net Profit29252439615675822349205194207
EPS in Rs1.941.651.602.584.013.584.835.291.513.1613.1612.3813.20
Dividend Payout %8%9%9%8%7%8%8%8%-0%6%6%8%

Steel Strips Wheels Ltd Profit & Loss Yearly Chart

Steel Strips Wheels Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:22%
3 Years:37%
TTM:5%
Compounded Profit Growth
10 Years:23%
5 Years:21%
3 Years:103%
TTM:6%
Stock Price CAGR
10 Years:36%
5 Years:26%
3 Years:62%
1 Year:88%
Return on Equity
10 Years:13%
5 Years:14%
3 Years:17%
Last Year:19%

Steel Strips Wheels Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital15151515151616161616161616
Reserves2943273493834444965696666827349361,1191,208
Borrowings5056126586316748701,1039881,001937778638836
Other Liabilities1451311621701963494894844806909721,008940
Total Liabilities9591,0861,1841,2001,3291,7322,1762,1532,1792,3772,7022,7813,000
Fixed Assets5645745715427057451,0291,3291,3071,2591,3601,3491,303
CWIP509712015452352323538510997163353
Investments0000000000044
Other Assets3444144925045726358237717871,0081,2451,2651,339
Total Assets9591,0861,1841,2001,3291,7322,1762,1532,1792,3772,7022,7813,000

Steel Strips Wheels Ltd Reserves and Borrowings Chart

Steel Strips Wheels Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 767811515295121233184104169406348
Cash from Investing Activity -123-104-62-34-91-375-299-80-69-37-154-128
Cash from Financing Activity 4367-71-631825376-113-64-171-248-234
Net Cash Flow-441-185522-110-10-29-395-14

Steel Strips Wheels Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days535674525256753549544032
Inventory Days75717467778110795124165108101
Days Payable595166596668131728113711095
Cash Conversion Cycle697683606369515793823837
Working Capital Days549079586164313880974636
ROCE %8%6%6%9%11%11%10%12%7%9%23%21%

Steel Strips Wheels Ltd Financial Efficiency Indicators Chart

Steel Strips Wheels Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.77%62.77%62.77%62.77%62.77%62.60%62.60%62.60%62.68%62.68%62.27%61.91%
FIIs0.69%0.84%0.26%0.12%0.14%0.07%0.14%5.63%5.63%5.63%6.05%6.07%
DIIs0.70%0.44%0.32%0.39%0.44%0.44%0.41%0.63%0.83%1.23%2.12%2.68%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.13%0.13%
Public35.84%35.96%36.66%36.72%36.65%36.89%36.86%31.14%30.86%30.45%29.44%29.18%
No. of Shareholders18,43718,39223,57726,37426,59027,93330,03633,45134,36937,45841,78542,927

Steel Strips Wheels Ltd Shareholding Pattern Chart

No. of Steel Strips Wheels Ltd Shareholders

Steel Strips Wheels Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Bandhan Small Cap Fund5377360.3613.94
Bandhan Transportation and Logistics Fund2500001.686.48
Aditya Birla Sun Life Small Cap Fund757780.041.96
Aditya Birla Sun Life Special Opportunities Fund721770.271.87
Motilal Oswal Nifty Microcap 250 Index Fund371320.150.96
Groww ELSS Tax Saver Fund204521.250.53
Groww Value Fund85181.580.22

Steel Strips Wheels Ltd ROCE Trend

Steel Strips Wheels Ltd EPS Trend

Steel Strips Wheels Ltd Key Financial Ratios

MonthMar 23
FaceValue1.00
Basic EPS (Rs.)12.39
Diluted EPS (Rs.)12.35
Cash EPS (Rs.)17.52
Book Value[Excl.RevalReserv]/Share (Rs.)72.50
Book Value[Incl.RevalReserv]/Share (Rs.)72.50
Revenue From Operations / Share (Rs.)258.16
PBDIT / Share (Rs.)29.08
PBIT / Share (Rs.)23.94
PBT / Share (Rs.)18.61
Net Profit / Share (Rs.)12.38
NP After MI And SOA / Share (Rs.)12.38
PBDIT Margin (%)11.26
PBIT Margin (%)9.27
PBT Margin (%)7.20
Net Profit Margin (%)4.79
NP After MI And SOA Margin (%)4.79
Return on Networth / Equity (%)17.07
Return on Capital Employeed (%)23.92
Return On Assets (%)6.96
Long Term Debt / Equity (X)0.14
Total Debt / Equity (X)0.56
Current Ratio (X)0.96
Quick Ratio (X)0.36
Dividend Payout Ratio (NP) (%)6.05
Dividend Payout Ratio (CP) (%)4.28
Earning Retention Ratio (%)93.95
Cash Earning Retention Ratio (%)95.72
Interest Coverage Ratio (X)5.45
Interest Coverage Ratio (Post Tax) (X)3.32
Enterprise Value (Cr.)2909.08
EV / Net Operating Revenue (X)0.71
EV / EBITDA (X)6.39
MarketCap / Net Operating Revenue (X)0.57
Retention Ratios (%)93.94
Price / BV (X)2.04
Price / Net Operating Revenue (X)0.57
EarningsYield0.08

Steel Strips Wheels Ltd Profitability Ratios (%)

Steel Strips Wheels Ltd Liquidity Ratios

Steel Strips Wheels Ltd Liquidity Ratios (%)

Steel Strips Wheels Ltd Interest Coverage Ratios (X)

Steel Strips Wheels Ltd Valuation Ratios

Fair Value / Intrinsic Value of Steel Strips Wheels Ltd

Fair Value: ₹279.64

The stock is undervalued by 10.97% compared to the current price ₹252

*Investments are subject to market risks

Strength and Weakness of Steel Strips Wheels Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (149.31 cr) and profit (114.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 23.94 and average Dividend Yield of 9.27%.
  2. The stock has a low average ROCE of 11.08%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 61.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 64.83, which may not be favorable.
  5. The company has higher borrowings (787.00) compared to reserves (631.31), which may suggest financial risk.

Should I Buy Steel Strips Wheels Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Steel Strips Wheels Ltd:
    1. Net Profit Margin: 4.79%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.92% (Industry Average ROCE: 10.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 3.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.36
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 19.2 (Industry average Stock P/E: 33.6)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.56
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.
YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-13.79%-4.00%62.50%56.41%-8.20%33.93%9.33%-71.95%113.04%318.37%-5.37%
Change in YoY Net Profit Growth (%)0.00%9.79%66.50%-6.09%-64.61%42.13%-24.60%-81.28%184.99%205.32%-323.73%

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Steel Strips Wheels Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE