Small Cap Stock Hit New 52 Week High, Jumps 36.66% In 1 Month, Buy For 28% Gain, Says ICICI Direct

Brokerage firm ICICI Direct initiates a 'Buy' on Steel Strips Wheels Ltd. (SSWL) with a positive outlook. The brokerage assigns Rs 260 apiece target price to the stock. With the given target price, the brokerage sees 28% upside potential in the stock from its current level.

On BSE, the stock jumped 5.96%, hitting the new 52-week high. SSWL is a small-cap company auto ancillary sector. It has a market capitalisation of Rs 244.25 Crore.

Buy for a Target Price of Rs 260 apiece

According to ICICI Direct, "We assign BUY rating to SSWL amid powertrain agnostic product profile (no EV risk), healthy volume growth visibility, increasing share of exports & alloy wheel in overall sales mix, consequent rise in margins & return rations."

The brokerage added, "We value SSWL at Rs 260 i.e. 13x P/E on FY25E of Rs 20. This is our high convication small-cap idea."

Stock Movement

The stock of SSWL last traded at Rs 203 apiece, 5.96% up as compared to its previous close. The stock hit a new 52-week high at Rs 212 apiece on Jun 26, 2023, while the 52-week low at Rs 126.20 apiece on Jan 20, 2023.

The stock jumped 8.88% in the past 1 week, whereas it jumped 36.66% in the past 1 month. It gave 29.19% positive return in the past 1 year. It gave 364.09% positive return in the past 3 years. It gave 69.77% positive return in the past 5 years.

About - Steel Strips Wheels Ltd. (SSWL)

Steel Strips Wheels Ltd. (SSWL), is a Chandigarh based company involved in designing and manufacturing of automotive wheels - both steel and alloy wheels. It currently has four plants in India with total production capacity of ~2.3 crore wheels per annum (including ~0.3 crore wheels per annum for alloy wheels).

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.