Steel Strips Wheels Limited – Attractive Valuations

Prabhudas Lilladher has also published their company visit note which is available here –

• SSWL has developed a new product “Aluminum knuckles” for PVs and has set-up a capacity of 1.2mn-1.5mn units which will ramp-up in phased manner staring 4QFY24. Every car requires 4 Knuckles (Steel or Aluminum) and the average after-market cost of steel Knuckles is in the range of Rs1,500 to Rs7,000 depending on vehicle and variant, aluminum knuckles cost will be much higher than steel. Aluminum
  knuckles require same raw material as alloy wheels and was a relatively easy diversification target for the company. In Europe 95% of PVs have aluminum
  knuckles while in India the market is relatively small, but EV push is making OEMs to move to lighter components which should drive demand for aluminum Knuckles. SSWL has already received orders from Mahindra and is working with Tata Motors for their EV models.