Steel Strips - +ve Biz. Traction, Mix + Op. Leverage to Aid in Margin Exp. With Benefits of Deleveg

Independent Research Analyst

Mamta Verma

DC India Research

DC India Research LLP (DCIR) is based out of Mumbai, India.

We specialize in providing customized, independent research across listed and unlisted companies in India across equities and credit including sectoral research. Our customers include India focussed PE funds, special situation funds, domestic AMCs, Wealth Advisory& PMS firms, Rating Agencies & Investment Advisors. 

The DCIR board consists of prominent names from the industry as well as CIO’s of Hedge funds.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/14540" target="_blank" data-smartkarma-citation="entities:14540:1">Steel Strips Wheels Ltd (SSW IN)</a></p><p><strong>Performance Snapshot -</strong></p><table class="table table-striped"><tbody>
<tr>
<td>Steel Strips Wheels</td>
<td>Q4FY17</td>
<td>Q1FY18</td>
<td>Q2FY18</td>
<td>Q3FY18</td>
<td>Q4FY18</td>
<td>FY17</td>
<td>FY18</td>
</tr>
<tr>
<td>Standalone (Rs. Mn.)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Net Sales</td>
<td>      3,801</td>
<td>      3,117</td>
<td>      3,779</td>
<td>      3,974</td>
<td>      4,311</td>
<td>  13,317</td>
<td>  15,182</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>23.1%</td>
<td>-4.3%</td>
<td>29.6%</td>
<td>19.4%</td>
<td>13.4%</td>
<td>12.7%</td>
<td>14.0%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>14.2%</td>
<td>-18.0%</td>
<td>21.2%</td>
<td>5.2%</td>
<td>8.5%</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Raw Material</td>
<td>      2,453</td>
<td>      1,723</td>
<td>      2,307</td>
<td>      2,451</td>
<td>      2,556</td>
<td>    8,933</td>
<td>    9,037</td>
</tr>
<tr>
<td>YoY (%)</td>
<td>42.8%</td>
<td>-8.3%</td>
<td>41.7%</td>
<td>21.7%</td>
<td>4.2%</td>
<td>13.4%</td>
<td>1.2%</td>
</tr>
<tr>
<td>QoQ (%)</td>
<td>21.8%</td>
<td>-29.8%</td>
<td>33.9%</td>
<td>6.2%</td>
<td>4.3%</td>
<td> </td>
<td> </td>
</tr>
<tr>
<td>as % net sales (%)</td>
<td>64.5%</td>
<td>55.3%</td>
<td>61.0%</td>
<td>61.7%</td>
<td>59.</td>
</tr>
</tbody></table>…

Steel Strips Wheels Ltd (SSW IN)Performance Snapshot -

Steel Strips Wheels
Q4FY17
Q1FY18
Q2FY18
Q3FY18
Q4FY18
FY17
FY18


Standalone (Rs. Mn.)
 
 
 
 
 
 
 


Net Sales
      3,801
      3,117
      3,779
      3,974
      4,311
  13,317
  15,182


YoY (%)
23.1%
-4.3%
29.6%
19.4%
13.4%
12.7%
14.0%


QoQ (%)
14.2%
-18.0%
21.2%
5.2%
8.5%
 
 


 
 
 
 
 
 
 
 


Raw Material
      2,453
      1,723
      2,307
      2,451
      2,556
    8,933
    9,037


YoY (%)
42.8%
-8.3%
41.7%
21.7%
4.2%
13.4%
1.2%


QoQ (%)
21.8%
-29.8%
33.9%
6.2%
4.3%
 
 


as % net sales (%)
64.5%
55.3%
61.0%
61.7%
59.

…

Steel Strips - In-Line, Robust Dom+ Exp Sales, Int Exp Key Monitorable - Re-Iterate "Buy" Inv Thesis