Stock of Steel Strips Wheels rose 5% in early trade after the company’s shareholders approved a sub-division of shares in the ratio of 1:2.
The share touched an intraday high of Rs 1,884, rising 4.96% on BSE. The stock has gained 7.8% in the last 3 days. The stock opened with a gain of 4.46% at Rs 1,875 against previous close of Rs 1,795.10 on BSE.
Steel Strips Wheels stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 312% in one year and risen 266.44% since the beginning of this year. Total 4,078 shares changed hands amounting to turnover of Rs 76.04 lakh on BSE.
Market cap of the firm rose to Rs 2,900 crore on BSE.
The share hit 52-week high of Rs 1,990 on September 1, 2021 and 52-week low of Rs 445.35 on October 5, 2020.
“We wish to inform that, at the 35th Annual General Meeting (AGM) of the company held on September 30, 2021, the shareholders of the company have approved the sub-division of equity shares of the company from the existing one equity share of face value of Rs 10 each into two equity shares of face value of Rs 5 each,” the company said in an exchange filing.
“The record date for the purpose of sub-division of equity shares shall be intimated in due course,” it added.
The company said its shareholders have also approved the appointment of Siddharth Bansal as a non-executive independent director starting from November 9, 2020 to September 30, 2025.
In September, India Ratings and Research upgraded Steel Strips Wheels Long-Term Issuer rating to ‘IND A-‘ from ‘IND BBB+’ , with positive outlook.
On September 27, HDFC Securities gave a target price of Rs 2,056 for a period of six months. At that time, Steel Strips Wheels share stood at Rs 1,744.
The brokerage expects the firm’s revenue/earnings before interest, tax, depreciation and amortisation/profit after tax to grow at 48/59/138% compounded annual growth rate of over FY21-FY23, led by the increased demand from the domestic automobile industry and higher contribution from alloy wheels and export segment.
Upgrade in credit rating and repayment of debt would aid in increasing profitability. The brokerage expects return on equity to improve from 6.8% in FY21 to 26.3% in FY23.
Steel Strips Wheels is engaged in designing and manufacturing automotive wheels, both in the steel and alloy category. Its facilities cater to a wide range of domestic and global automobile makers.
The firm has partnership with companies including Tata Steel and international players such as Kalink Co of South Korea.
