SSWL spurts on bagging export order for 6,000 truck wheels
SSWL has bagged fresh exports order for its truck wheels plant in Chennai. The total order size is close to 6,000 truck wheels to be supplied over period of 12 months. Supplies will begin from December 2017.
The company is in advanced stage of discussions to finalize long-term contracts with multiple European customers and expects to close them by early next year.
It has already marked its entry in the high potential Truck and Trailer Steel wheels market in EU and aims to strengthen it in near future.
This export order will add to its healthy order book, which provides better revenue visibility in coming years. Moreover, major growth triggers for the company in near future are the brown-field CV expansion in Chennai and new alloy wheel plant in Mehsana, Gujarat (production commenced in Oct’17).
SSWL is well positioned in the industry because of its increasing market share, strong entry barriers in wheels manufacturing, sticky clientele, expansion of CV base in Chennai and foray into alloy wheels segment.
We have a positive outllook for the stock. At current market price stock trades at ~13 FY19E P/E.
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Via:: Stock – India Infoline