- 23 Dec 2024
- ICICI Securities
SSWL RECEIVES STEEL WHEEL ORDER FROM EUROPEAN OEM
News: In a press release, Steel Strips Wheels Limited (SSWL) has announced that it has received a nomination for a steel wheel supply contract from a leading European OEM, valued at approximately €15 million (~₹ 135 crore) over six years, with series supplies expected to begin by the end of calendar year 2026.
Views: This development reflects SSWL's strategic focus on expanding its presence in the European and U.S. markets, and the company anticipates securing additional business from global OEMs in the coming months, further enhancing its growth prospects and investor confidence. With ~70% of H1FY25 revenue being attributed by steel wheels and an expected production capacity of 270 lakh for FY25, puts the company in a positive position to expand its presence in Europe. In H1FY25, Export revenue was pegged at ~₹ 273 crores (down 18% YoY), with EU contribution expanding to 32% in H1FY25 from 25% in FY24. Positive momentum in exports is cornerstone of growth for the company which has been muted in the recent past. At the current market price, risk reward is favourable and we have a positive view on SSWL.
Impact: Positive