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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Steel Strips Wheels Ltd

Basic Stock Data

Last Updated: June 25, 2024, 10:20 pm

Market Cap 3,388 Cr.
Current Price 216
High / Low299/190
Stock P/E15.4
Book Value 85.8
Dividend Yield0.46 %
ROCE18.8 %
ROE17.7 %
Face Value 1.00
PEG Ratio0.27

Competitors of Steel Strips Wheels Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wheels India Ltd 2,029 Cr. 831864/54834.4 3440.89 %12.4 %7.34 % 10.0
Industry Average2,029.00 Cr831.0034.40344.000.89%12.40%7.34%10.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales7006789588611,0631,0161,0819381,0051,0441,1341,1101,069
Expenses6145808217549529079648318969311,009994958
Operating Profit8698137107111109117108108113124117111
OPM %12%14%14%12%10%11%11%12%11%11%11%11%10%
Other Income6242504274327
Interest19202422191821222324262528
Depreciation19182020192020202022222223
Profit before tax54639766787180687371797168
Tax %18%19%35%35%38%32%32%35%35%33%34%16%11%
Net Profit45516343494855444748526060
EPS in Rs2.863.274.032.733.133.083.492.803.023.043.353.793.85

Last Updated: June 10, 2024, 6:06 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 9:08 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9681,0561,1481,1771,3301,5182,0411,5631,7493,5604,0414,357
Expenses8739571,0411,0311,1651,3181,7951,3921,5463,1073,5983,892
Operating Profit9599108145165200246171204453443465
OPM %10%9%9%12%12%13%12%11%12%13%11%11%
Other Income111921192013172216131216
Interest3041414351649389848584103
Depreciation505338424853627272778090
Profit before tax2725497986971093364304291289
Tax %6%3%19%23%35%23%24%28%23%32%33%24%
Net Profit252439615675822349205194220
EPS in Rs1.651.602.584.013.584.835.291.513.1613.1612.3814.01
Dividend Payout %9%9%8%7%8%8%8%0%6%6%8%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-4.00%62.50%56.41%-8.20%33.93%9.33%-71.95%113.04%318.37%-5.37%13.40%
Change in YoY Net Profit Growth (%)0.00%66.50%-6.09%-64.61%42.13%-24.60%-81.28%184.99%205.32%-323.73%18.77%

Growth

Compounded Sales Growth
10 Years:15%
5 Years:16%
3 Years:36%
TTM:8%
Compounded Profit Growth
10 Years:26%
5 Years:22%
3 Years:65%
TTM:13%
Stock Price CAGR
10 Years:23%
5 Years:22%
3 Years:41%
1 Year:6%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:20%
Last Year:18%

Last Updated: June 25, 2024, 4:50 pm

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-517.00-559.00-523.00-529.00-705.00199.00-742.00170.00-733.00-325.00-195.00464.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Bandhan Small Cap Fund537,7360.3613.9420,4522024-06-242529.26%
Bandhan Transportation and Logistics Fund250,0001.686.4820,4522024-06-241122.37%
Aditya Birla Sun Life Small Cap Fund75,7780.041.9620,4522024-06-24270.52%
Aditya Birla Sun Life Special Opportunities Fund72,1770.271.8720,4522024-06-24252.91%
Motilal Oswal Nifty Microcap 250 Index Fund37,1320.150.9620,4522024-06-2481.56%
Groww ELSS Tax Saver Fund20,4521.250.5320,4522024-06-240%
Groww Value Fund8,5181.580.2220,4522024-06-24-58.35%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue1.001.00
Basic EPS (Rs.)43.0712.39
Diluted EPS (Rs.)43.0912.35
Cash EPS (Rs.)49.6617.52
Book Value[Excl.RevalReserv]/Share (Rs.)91.9072.50
Book Value[Incl.RevalReserv]/Share (Rs.)91.9072.50
Revenue From Operations / Share (Rs.)277.65258.16
PBDIT / Share (Rs.)30.4429.08
PBIT / Share (Rs.)23.8023.94
PBT / Share (Rs.)47.4018.61
Net Profit / Share (Rs.)43.0212.38
NP After MI And SOA / Share (Rs.)42.9912.38
PBDIT Margin (%)10.9611.26
PBIT Margin (%)8.579.27
PBT Margin (%)17.077.20
Net Profit Margin (%)15.494.79
NP After MI And SOA Margin (%)15.484.79
Return on Networth / Equity (%)46.7817.07
Return on Capital Employeed (%)18.8723.92
Return On Assets (%)20.426.96
Long Term Debt / Equity (X)0.260.14
Total Debt / Equity (X)0.720.56
Asset Turnover Ratio (%)1.430.00
Current Ratio (X)0.900.96
Quick Ratio (X)0.380.36
Inventory Turnover Ratio (X)3.990.00
Dividend Payout Ratio (NP) (%)0.006.05
Dividend Payout Ratio (CP) (%)0.004.28
Earning Retention Ratio (%)0.0093.95
Cash Earning Retention Ratio (%)0.0095.72
Interest Coverage Ratio (X)4.655.45
Interest Coverage Ratio (Post Tax) (X)2.973.32
Enterprise Value (Cr.)4474.752909.08
EV / Net Operating Revenue (X)1.030.71
EV / EBITDA (X)9.376.39
MarketCap / Net Operating Revenue (X)0.790.57
Retention Ratios (%)0.0093.94
Price / BV (X)2.412.04
Price / Net Operating Revenue (X)0.790.57
EarningsYield0.190.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 234.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.77% compared to the current price 216

Intrinsic Value: 366.83

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 69.83% compared to the current price ₹216

Last 5 Year EPS CAGR: 56.13%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (82.33 cr) and profit (121.08 cr) over the years.
  1. The stock has a low average ROCE of 11.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 61.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 64.83, which may not be favorable.
  4. The company has higher borrowings (828.17) compared to reserves (669.58), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Steel Strips Wheels Ltd:
    1. Net Profit Margin: 15.49%
      • 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: 18.87% (Industry Average ROCE: %)
      • 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. ROE%: 46.78% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.97
      • 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.
    5. Quick Ratio: 0.38
      • 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.
    6. ✗ Stock P/E: 15.4 (Industry average Stock P/E: )
      • 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.
    7. Total Debt / Equity: 0.72
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Steel Strips Wheels Ltd?

The latest fair value of Steel Strips Wheels Ltd is ₹234.95.

What is the Market Cap of Steel Strips Wheels Ltd?

The Market Cap of Steel Strips Wheels Ltd is 3,388 Cr..

What is the current Stock Price of Steel Strips Wheels Ltd as on 25 June 2024?

The current stock price of Steel Strips Wheels Ltd as on 25 June 2024 is ₹216.

What is the High / Low of Steel Strips Wheels Ltd stocks in FY 2024?

In FY 2024, the High / Low of Steel Strips Wheels Ltd stocks is 299/190.

What is the Stock P/E of Steel Strips Wheels Ltd?

The Stock P/E of Steel Strips Wheels Ltd is 15.4.

What is the Book Value of Steel Strips Wheels Ltd?

The Book Value of Steel Strips Wheels Ltd is 85.8.

What is the Dividend Yield of Steel Strips Wheels Ltd?

The Dividend Yield of Steel Strips Wheels Ltd is 0.46 %.

What is the ROCE of Steel Strips Wheels Ltd?

The ROCE of Steel Strips Wheels Ltd is 18.8 %.

What is the ROE of Steel Strips Wheels Ltd?

The ROE of Steel Strips Wheels Ltd is 17.7 %.

What is the Face Value of Steel Strips Wheels Ltd?

The Face Value of Steel Strips Wheels Ltd is 1.00.

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