Multibagger stock: Steel Strips Wheels shares record over 440% growth in 3 years; is there more upside left?

livemint.com:

₹50.60 apiece three years ago, shares of Steel Strips Wheels (SSWL), a prominent player in the automotive wheel manufacturing sector, have strengthened 442% to trade at the current price of ₹274.30 apiece. In the same period, the Nifty Smallcap 100 index gained 116%. The stock experienced significant gains in the calendar year 2021, soaring by 241%.

However, in the subsequent year, the pace of growth decelerated, resulting in a decline of 7.46%. Remarkably, in CY2023, the stock rebounded robustly, concluding the year with a massive return of 63%. The company designs, manufactures, and supplies steel wheel rims and alloy wheels for a wider range of domestic and global automobile makers.

It currently has a total manufacturing capacity of 23.5 million wheels, divided between 20 million steel wheels and 3 million alloy wheels. Also Read: FII selling in Indian stock market may continue despite ₹27,000 crore outflow in Jan so far, say analysts; here's why The company supplies to all the major PV and CV OEMs, such as Maruti Suzuki, M&M, MG, Hyundai, Honda, Kia, JLR, Ashok Leyland, Tata Motors, and Escorts. In August 2023, the company received the first export order for OTR wheels for an OEM in the Oceania market.

This marks the entry of SSWL into a new segment and geography, which compliments its strategy to increase its presence in the global OEM market of OTR steel wheels. The company is expanding its alloy wheel capacity by an additional 1.8 million units at Mehsana in 4QFY24. Also, the company will add an incremental 7 million in steel wheel capacity via the acquisition of AMW Auto Components through the NCLT route.