News: On standalone basis, for Q2FY25, Net sales came in at ₹1,095 crore (down 3% YoY). EBITDA for the quarter stood at ₹120 crore with corresponding margins at 11.0% (down 10 bps QoQ). PAT for Q2FY25 came in at ₹50.2 crore (down 4.1% YoY). PAT decline on YoY basis for the quarter is largely on account of higher interest and depreciation charge along with increase in other expenses.
Views: Growth is still elusive at the company despite robust management commentary in the past. Only solace from quarterly results was healthy CFO generation and consequent reduction in debt on company’s B/S. At the CMP, the stock trades inexpensive at ~<12x PE on FY26E with 15%+ return ratios profile. We don’t see further downside in share price for Steel Strips Wheels.
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