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ICICIdirect Research 23 Oct 2026 DISCLAIMER

Steel Strip Wheels (CMP - ₹ 470, Reco – Buy)

Steel Strip Wheels reported stellar performance in Q2FY27 with stock locked in upper circuit of 20%. It reported a topline growth of ~60% while margins came in all time high levels of 12.2%, up 150 bps QoQ. PAT for the quarter tripled to ~₹ 120 crore. Continuing with its growth journey, it has further announced a ₹1,400 crore investment at Chhatrapati Sambhajinagar, comprising ₹815 crore for alloy wheels (2.5 million units p.a.), ₹410 crore for steel wheels (1.6 million units p.a.) and ₹175 crore for hot stamping. The project is planned over a period of up to 60 months. With EV agnostic product profile, transition towards value added alloy wheels and inexpensive valuations. We remain positive on the stock with our last rating as BUY (Target price: ₹ 330), we shall revisit soon.

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