Check Before You Invest : Steel Strips Wheels Ltd

Q: Which industry/sub-sector does Steel Strips Wheels Ltd belong to?

Steel Strips Wheels Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q: Is Steel Strips Wheels Ltd a good quality company?

Steel Strips Wheels Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Steel Strips Wheels Ltd undervalued or overvalued?

Steel Strips Wheels Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 16.69, Historic Median: 15.18. Price to Book, Current: 2.04, Historic Median: 2.61. Price to Sales, Current: 0.67, Historic Median: 0.76. EV to EBITDA, Current: 8.31, Historic Median: 8.59

Q: Is Steel Strips Wheels Ltd a good buy now?

Steel Strips Wheels Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd revenue growth is 1.7% for FY-2025, which is below its 5-year CAGR of 23.15%, indicating slower growth.

Q: Gross Profit margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is in line with its 5-year median of 8.7%, indicating stable margins.

Q: Operating Profit Margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.99% for FY-2025, which is in line with its 5-year median of 11.35% indicating stable margins.

Q: Net Profit Margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Net Profit Margin is 4.74% for FY-2025, is in line with its 5-year median of 4.8%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.7, Historic Median: 8.7. Operating Profit Margin (%), Current: 10.99, Historic Median: 11.35. Net Profit Margin (%), Current: 4.74, Historic Median: 4.8

Q: Return on Asset of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Return on Asset is 6.36%, which is below its 5-year historical median of 7.07%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Return on capital employed is 17.14% for FY-2025, which is below its 5-year historical median of 19.27%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Steel Strips Wheels Ltd

BSE: 513262 NSE: SSWL ISIN: INE802C01033

| Sector: Automobiles | Industry: Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Steel Strips Wheels Ltd belong to?

Steel Strips Wheels Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Steel Strips Wheels Ltd a good quality company?

Steel Strips Wheels Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Steel Strips Wheels Ltd undervalued or overvalued?

Steel Strips Wheels Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	16.69	15.18
Price to Book	2.04	2.61
Price to Sales	0.67	0.76
EV to EBITDA	8.31	8.59

Q.4 Is Steel Strips Wheels Ltd a good buy now?

Steel Strips Wheels Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd revenue growth is 1.7% for FY-2025, which is below its 5-year CAGR of 23.15%, indicating slower growth.

Q.2 Gross Profit margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is in line with its 5-year median of 8.7%, indicating stable margins.

Q.3 Operating Profit Margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.99% for FY-2025, which is in line with its 5-year median of 11.35% indicating stable margins.

Q.4 Net Profit Margin of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Net Profit Margin is 4.74% for FY-2025, is in line with its 5-year median of 4.8%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	8.7	8.7
Operating Profit Margin (%)	10.99	11.35
Net Profit Margin (%)	4.74	4.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Return on Asset is 6.36%, which is below its 5-year historical median of 7.07%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Return on capital employed is 17.14% for FY-2025, which is below its 5-year historical median of 19.27%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Return on equity is 15.14% for FY-2025, which is below its 5-year historical median of 18.58%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Cash conversion cycle is 36 days, above its 5-year historical median of 33 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.34	1.4
ROE (%)	15.14	18.58
ROCE (%)	17.14	19.27
Cash Conversion Cycle	36 days	33 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Debt-to-Equity ratio is 0.56, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Steel Strips Wheels Ltd?

Steel Strips Wheels Ltd Debt to cash flow from operations is 1.6, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Steel Strips Wheels Ltd?

Q.1 Promoter shareholding and pledge status of Steel Strips Wheels Ltd?

Promoters hold 61.14% of the Steel Strips Wheels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Steel Strips Wheels Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Steel Strips Wheels Ltd vs industry peers?

Steel Strips Wheels Ltd revenue CAGR is 23.15%, compared to the industry median CAGR of 11.89%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	1.7	11.9
Gross Profit Growth (%)	1.1	16.2
Operating Profit Growth (%)	4.7	14.7
Net Profit Growth (%)	-4.6	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.34	1.24
ROE (%)	15.14	11.65
ROCE (%)	17.14	13.5
Cash Conversion Cycle (days)	35.86	46

Valuation & price assessment

Q.1 Stock return of Steel Strips Wheels Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.7%	23%	11.4%	-3.7%

Q.2 Valuation ratios of Steel Strips Wheels Ltd vs historical?

The current P/E ratio of 16.69 is higher than its historical median of 15.18, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	16.69	15.18	28.71
Price to Book	2.04	2.61	2.99
Price to Sales	0.67	0.76	1.35
EV to EBITDA	8.31	8.59	11.85

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Check Before You Invest : Steel Strips Wheels Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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