Prepared By - Akansha Gupta

Content :-

• Business
• Financial Performance
• Growth Drivers
• Anti Thesis Pointers
• Valuation

Business

• Manufacturer as well as Market Leader of wheels in both Alloy and Steel Category with a diversified revenue base. Follows Umbrella approach, provides entire portfolio of Steel and Alloy Wheels
• 4 Manufacturing Plants of which one located in Mehsana,Gujarat is solely engaged in the manufacture of Alloy wheels
• Strategic Investors of the company include the following which provides assurance

Financial Performance

• Revenue for the year ended March '21 = 1749 Crs

  Revenue for H1 FY22 = 1636 Crs. Expected Revenue 3500 Crs guided by the management
  

Source :- Investor Presentation dtd Dec 2021

• EBITDA Margin Expansion to 14-14.5% in FY 2022 as a result of increased share of exports and alloy wheels in the product mix. Expected EBITDA for current year is 450 Crs.
• ROCE CY - 25% as compared to FY 2021 - 10%
• Ability to pass on RM price increase to the customers which has helped in maintaining margins. The management aims to report highest ever margins per tonne in FY '22
• Good Operating Cash Flows