Buy Steel Strips Wheels, target Rs 1685 : SMC

SMC Institutional Equities has a buy call on Steel Strips Wheels Ltd. with a target price of Rs 1685. The current market price of Steel Strips Wheels Ltd. is Rs 1243.7 Time period given by the brokerage is a year when Steel Strips Wheels Ltd. price can reach defined target. Steel Strips Wheels Ltd., incorporated in 1985, is a smallcap company with a market cap of Rs 1934.73 crore.

Investment rationale by SMC Institutional Equities

Steel Strips Wheels Ltd. (SSWL) is engaged in Designing & manufacturing of automotive steel wheels since 1991 and is among the leading suppliers to Indian & Global Automobile OEMs. Company’s product range comprises Steel wheels for 2& 3 Wheelers, Passenger cars, Multi utility vehicles, Tractors, Trucks & OTR Vehicles. SSWL over last two years has laid a strong foundation by expanding its capacities in key product segments (CV and PV alloy wheel) and across geographies leading to right mix for a substantial growth ahead. We believe SSWL makes a healthy investment proposition given the multi-year opportunity for its Alloy Wheels and current uptick in CV cycle. We believe SSWL provides the right mix to play on India’s automobile story.