Multibagger Stock: Steel Strips Wheels Ltd.
Steel Strips Wheels Ltd.
Steel Strips Wheels is a company that specializes in designing and manufacturing wheels for vehicles.
It operates four plants across the country and has an annual production capacity of 23 million wheels. Out of the total production, approximately 3 million wheels are alloy wheels.
Recently, Steel Strips Wheels’ shares experienced a significant increase, rising by 41% in a month to reach a record high on Wednesday.
The surge in share price has resulted in substantial gains for investors, with some becoming millionaires due to their investment in the company. With an initial investment of Rs 66,000, investors have seen remarkable returns.
According to brokerage reports, the positive momentum in Steel Strips Wheels’ shares is expected to continue, with a potential increase of 25% from the current level.
On Wednesday, the company’s shares closed at Rs 208.45 on the Bombay Stock Exchange (BSE), registering a gain of 0.19%. During intra-day trading, the share price reached a record high of Rs 214.90.
66 Thousand Investment Became One Crore
The shares of Steel Strips Wheels, which were priced at just Rs 1.37 on June 27, 2003, have witnessed a remarkable growth over the past 20 years. The stock has surged by an impressive 15,116%, reaching a current price of Rs 208.45.
This significant increase in share price has resulted in investors becoming millionaires with an initial investment of Rs 66,000.
Steel Strips Wheels has not only performed well in the long term but has also shown promising returns in the short term.
On January 30 of this year, the stock reached a one-year low of Rs 126.20. However, it experienced a surge of over 70% in just five months, reaching a record high of Rs 214.90 on June 28, 2023. Subsequently, due to profit-booking, the price softened, leading to a 3% decline.
Overall, the stock of Steel Strips Wheels has demonstrated substantial growth over the years, providing significant returns to its investors.
It is important to note that investing in stocks involves risks, and it is recommended to conduct thorough research and seek professional advice before making any investment decisions.
What’s Next in Steel Strips Wheels Trends?
Steel Strips Wheels is a company that specializes in the design and manufacturing of wheels for vehicles. The company operates four plants located across the country.
With an annual production capacity of 23 million wheels, Steel Strips Wheels caters to the growing demand for wheels in the automotive industry. Among its production, approximately 3 million wheels are specifically alloy wheels.
ICICI Direct, a reputed brokerage firm, has given Steel Strips Wheels a buy rating based on several factors. Firstly, the company is experiencing a rising export share, which indicates an expanding international market for its products.
Secondly, it has demonstrated healthy volume growth prospects, suggesting a growing demand for its wheels.
Additionally, the company’s margin is expanding, indicating improved profitability. Lastly, the share of alloy wheels in the company’s overall sales is increasing, which is a positive development considering the higher value and demand for alloy wheels.
In terms of valuation, ICICI Direct states that Steel Strips Wheels is trading at 20 times its valuation, specifically at 13 times the price-to-earnings ratio (P/E) based on estimated FY25 (financial year 2024-2025) earnings per share (EPS) of Rs 20. This indicates that the stock may be undervalued relative to its future earnings potential.
Based on their analysis, ICICI Direct has set a target price of Rs 260 for investing in Steel Strips Wheels. This target price represents the brokerage’s estimate of the stock’s value and suggests potential upside for investors who purchase the stock at its current price.
It’s important to note that investment decisions should be made after careful consideration of various factors, including personal financial goals, risk tolerance, and individual research.
Consulting with a financial advisor or conducting further analysis can provide a more comprehensive understanding of the investment potential of Steel Strips Wheels.
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