Wheels India on good roads

Wheels India is seeing some action today. The stock opened over 3% higher today at Rs.645, going up 4.5% to an intraday high at Rs.653.20 on the back of robust volumes. Profit booking has since then pushed the stock into the red currently, trading at Rs.624 levels.

The company announced a good set of earnings for Q4FY22. In our ‘Little Gems’ section, we have opined that the numbers are exceptionally good with PBT at Rs. 34 cr v/s Rs. 24 cr (QoQ), with PAT at Rs. 25.90 cr v/s Rs. 18.63 cr, resulting in an EPS of Rs. 11.12 v/s Rs. 8.05 of Q3. The company is likely to see same type of financial performance in next 4 quarters of FY23.

Over 50% of income comes from CV, Tractors & PV, while balance from wheels and components for construction & mining, energy equipments and railway bogie frames. 25% of income, comes from exports to 40 global customers.

Additionally, the company has drawn up plans to invest about Rs.155 crore towards expansion of construction equipment and aluminum wheels business during the current financial year. It will make an additional Rs 25 crore investment to the Rs 75 crore it already made at its in new plant in Thervoy Kandigai in neighbouring Tiruvallur district for machining of large wind turbine castings.

Our Editor, Mr.SP Tulsian has said in the section that the share ruling at Rs. 626 can move to Rs. 645 in 1 month and Rs. 664 in the next 3 months.