Steel Strips Wheels has emerged as a standout performer in the auto ancillary space, with Axis Securities positioning the company as their "Pick of the Week" and setting a target price of ₹220. Trading at ₹197 as of January 13, 2026, the stock presents potential upside driven by strategic expansion plans and strong export momentum over a 6-9 month investment horizon.

European Market Expansion Drives Growth

The company has achieved remarkable success in expanding its European footprint, demonstrating significant geographical diversification in its revenue base.

The European market expansion provides stability amid challenging conditions in other regions. While the US market outlook remains weak with potential annual revenue impact of ₹200.00 crores, a possible tariff reduction to 28% could reopen negotiations with US customers if the 25% penalty on Russian oil imports is lifted.

Strategic Capacity Expansion Plans

Alloy wheels have emerged as a key value driver for the company, contributing 36% of total revenue in H1FY26. The strategic expansion focuses on capability enhancement rather than base capacity expansion.

The company plans to leverage advanced German technology for lightweight export applications, utilizing existing infrastructure to add flow-formed wheel capability.

Aluminium Knuckles: New Growth Vertical

Steel Strips Wheels has successfully launched aluminium knuckles as a new growth vertical, targeting the expanding electric and premium vehicle segments.

This vertical addresses the growing demand from electric and premium vehicle segments seeking improved fuel efficiency solutions.

Financial Projections and Volume Outlook

Axis Securities projects steady growth across key financial metrics, supported by anticipated recovery in commercial vehicle and tractor segments.

Volume projections indicate total wheel volumes of 2.05 crore units in FY26 and 2.10 crore units in FY27, supported by gradual recovery in the commercial vehicle and tractor segments, rising share of alloy wheels, higher exports, and the introduction of aluminium steering knuckles.

Valuation Metrics Show Improving Attractiveness

The company's valuation metrics demonstrate improving attractiveness over the forecast period.

The financial outlook indicates the company is entering a more robust period of growth and profitability, supported by expanding margins, higher returns, and improved valuation comfort across multiple metrics.

Steel Strips Wheels Limited has achieved a remarkable milestone by recording its highest monthly sales ever in December 2025, demonstrating strong operational performance and market demand across its product portfolio. The company's exceptional performance reflects robust growth momentum and effective market positioning in the automotive ancillary sector.

Financial Performance Highlights

The company delivered impressive financial results with significant year-over-year growth metrics that underscore its strong market performance.

The 15.98% year-over-year growth in gross turnover to ₹515.87 crore represents a substantial improvement in the company's revenue generation capabilities and market penetration across its key business segments.

Sector-wise Growth Performance

Steel Strips Wheels experienced significant growth across multiple business verticals, demonstrating the strength of its diversified product portfolio and market reach.

The strong performance across tractor, aluminum, and truck sectors indicates robust demand conditions and the company's ability to capitalize on market opportunities. This diversified growth pattern provides stability and reduces dependency on any single market segment.

Market Achievement and Milestone

December 2025 marked a historic achievement for Steel Strips Wheels as the company recorded its highest monthly sales performance to date. This milestone reflects the company's operational excellence, market strategy effectiveness, and strong customer demand across its product range. The record-breaking monthly sales performance positions the company favorably for continued growth and market expansion in the automotive ancillary sector.