Company Overview:
SSWL designs and manufactures automotive steel wheels since 1991 and is among the leading supplier to Indian & Global Automobile Manufacturers. The product range comprises Steel wheels for Two and Three Wheelers, Passenger cars, Multi utility vehicles, Tractors, Trucks & OTR Vehicles.
SSWL have set up state-of-the-art facilities and deployed an optimized manufacturing process which ensures that the quality and reliability of the products are maintained for their lifetime.
With Technical Collaboration with Ring Techs Co Ltd. (a 100% subsidiary of Sumitomo Metals Ltd., Japan) , SSWL have achieved world class Technical excellence in Wheel manufacturing.
The State of Art facilities of SSWL caters to widest range of Domestic & Global Automobile customers demands with highest quality standards benchmarks.
Strategic Partners:
1) GS Global Corporation (GSGC), South Korea 2) Sumitomo Metal Industries Ltd (SMI), Japan 3) Tata Steel Ltd through Kalimati Investment Company Ltd (KICL), India
Risk factors:
Positives:
But still, with strong order book, I am expecting the company to grow at 20% CAGR in sales over next 3-4 years. Economy, not just in India, but especially Europe, will be a decisive factor for their growth, as it has lots of major clients from Europe. If it does grow well over next few years, we could see a very strong re-rating on the counter. Past year (FY'14), was absolutely flat for the company, with sales growing only 10% over FY13, and that too, because of superb performance in Q4, where they grew about 34% yoy. Net profit has been flat to negative, in past 2 years. Current annual EPS is around 16, which makes the stock trading at a P/E ratio of 16, which is not too high, looking at the strong client-tele, the company is having.
For risk takers and faith-takers we are having a buy call for the target of 400 in a year.
courtesy for some content - kunal bakner.
SSWL designs and manufactures automotive steel wheels since 1991 and is among the leading supplier to Indian & Global Automobile Manufacturers. The product range comprises Steel wheels for Two and Three Wheelers, Passenger cars, Multi utility vehicles, Tractors, Trucks & OTR Vehicles.
SSWL have set up state-of-the-art facilities and deployed an optimized manufacturing process which ensures that the quality and reliability of the products are maintained for their lifetime.
With Technical Collaboration with Ring Techs Co Ltd. (a 100% subsidiary of Sumitomo Metals Ltd., Japan) , SSWL have achieved world class Technical excellence in Wheel manufacturing.
The State of Art facilities of SSWL caters to widest range of Domestic & Global Automobile customers demands with highest quality standards benchmarks.
Strategic Partners:
1) GS Global Corporation (GSGC), South Korea 2) Sumitomo Metal Industries Ltd (SMI), Japan 3) Tata Steel Ltd through Kalimati Investment Company Ltd (KICL), India
Risk factors:
- The maor risk company might face, as far as the stock price is concerned would be the very high debt, but that is because of nature of business, where they have to fulfill the orders received from the company. The Debt:Equity is close to 2.
- Another challenge the company might face could be on account of cancellation of orders, in testing times for the clients.
Positives:
But still, with strong order book, I am expecting the company to grow at 20% CAGR in sales over next 3-4 years. Economy, not just in India, but especially Europe, will be a decisive factor for their growth, as it has lots of major clients from Europe. If it does grow well over next few years, we could see a very strong re-rating on the counter. Past year (FY'14), was absolutely flat for the company, with sales growing only 10% over FY13, and that too, because of superb performance in Q4, where they grew about 34% yoy. Net profit has been flat to negative, in past 2 years. Current annual EPS is around 16, which makes the stock trading at a P/E ratio of 16, which is not too high, looking at the strong client-tele, the company is having.
For risk takers and faith-takers we are having a buy call for the target of 400 in a year.
courtesy for some content - kunal bakner.
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