Steel Strips Wheels Ltd (SSWL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NRB Bearings

Sandhar Tech

Jamna Auto Inds.

Carraro India

Lumax Industries

Automotive Axles

Federal-Mogul Go

JTEKT India

Rolex Rings

Steel Str. Wheel

Sundaram Clayton

Why is Steel Strips Wheels Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -0.46% of over the last 5 years

Negative results in Sep 25

PAT(Q) At Rs 35.52 cr has Fallen at -29.6% (vs previous 4Q average)
ROCE(HY) Lowest at 14.08%
OPERATING PROFIT TO INTEREST (Q) Lowest at 3.49 times

Below par performance in long term as well as near term

Along with generating -8.29% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Steel Str. Wheel for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Steel Str. Wheel

-8.46%

-0.24

35.07%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.74%

EBIT Growth (5y)

-0.46%

EBIT to Interest (avg)

3.35

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

1.80

Tax Ratio

24.03%

Dividend Payout Ratio

10.04%

Pledged Shares

Institutional Holding

13.35%

ROCE (avg)

15.34%

ROE (avg)

13.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.79

EV to EBIT

10.83

EV to EBITDA

8.15

EV to Capital Employed

1.52

EV to Sales

0.84

PEG Ratio

Dividend Yield

0.64%

ROCE (Latest)

14.04%

ROE (Latest)

11.17%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 516.64 Cr

DPS(Y)

Highest at Rs 1.25

DPR(Y)

Highest at 9.34%

DEBTORS TURNOVER RATIO(HY)

Highest at 13.26 times

-16What is not working for the Company

PAT(Q)

At Rs 35.52 cr has Fallen at -29.6% (vs previous 4Q average

ROCE(HY)

Lowest at 14.08%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.49 times

INTEREST(Q)

Highest at Rs 31.95 cr

PBDIT(Q)

Lowest at Rs 111.48 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 9.29%

PBT LESS OI(Q)

Lowest at Rs 47.15 cr.

EPS(Q)

Lowest at Rs 2.26

Loading Valuation Snapshot...

Here's what is working for Steel Str. Wheel

Operating Cash Flow - Annually

Highest at Rs 516.64 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 13.26 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 1.25

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 9.34%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Steel Str. Wheel

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 47.15 cr has Fallen at -28.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 65.69 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 35.52 cr has Fallen at -29.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 50.43 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 3.49 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 31.95 cr

in the last five quarters and Increased by 10.94 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 111.48 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 9.29%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 47.15 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.26

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)