Steel Strips Wheels Limited – Attractive Valuations

Some keys variables to track –

1. Management guides to improve the EBIDTA per wheel for its steel wheels (bread and butter business as it is called). EBIDTA per steel wheel was Rs 253 per wheel similar to previous year. Steel wheels is 72% of full FY24 revenue. The expectation is see positive side correction on 72% of the business as per the management.

2. Knuckles revenue shall doube from 35 cr to 70 cr and then 4x

3. Co may consider to do a greenfield expansion very to the Maruti plant based on how the relationship with Maruti goes. (REMEMBER- “may consider”)

   

4. Uno minda is making a greenfield investment in alloy wheels. 1.44 Million capacity per year. Below image from UNO Minda,

   

5. Guidance of 4800 Rev for FY25 with 0% growth in CV and no revenue contribution from AWM