Synopsis: Wheels India has signed a technical assistance agreement with Japan’s Topy Industries to strengthen aluminium wheel capabilities, target domestic and Japanese OEMs, and expand plant capacity from 5 lakh to 10 lakh wheels by FY27.
This company is engaged in the business of manufacture of road wheels, parts & accessories for machinery/equipment used by construction and mining industries and Wind Turbine Parts is now in the focus after entering into a Technical Assistance Agreement with Japan-based Topy Industries.
With market capitalization of Rs. 2,187 cr, the shares of Wheels India Ltd are currently trading at Rs. 895 per share, jumping more than 7% in today’s market session, making a high of Rs. 904.60, up from its previous close of Rs. 843 per share.
About the agreement
Wheels India Limited has entered into a Technical Assistance Agreement with Japan-based Topy Industries to strengthen its capabilities in the design, development, and manufacture of cast aluminium alloy wheels.
Under the agreement, Topy Industries, a globally renowned wheel manufacturer with over 100 years of experience, will provide technical know-how and engineering support to enhance Wheels India’s aluminium wheel business. This strategic collaboration is expected to help the company win new business, improve competitiveness, and accelerate growth in the aluminium wheels segment.
The company entered the alloy wheel segment in FY21 with a state-of-the-art facility at Thervoy Kandigai near Chennai, initially focused on exports to the US and European aftermarket. The company has now turned its focus to the domestic OEM market and has commenced supplies to leading automakers such as Tata Motors and Stellantis.
In addition, it has secured new orders from Hyundai and Volkswagen, with supplies expected to begin next year. Through the agreement with Topy, the company is also aiming to make inroads into Japanese OEMs in India.
Capacity Expansion
To support growing demand, Wheels India is undertaking a capacity expansion at its Thervoy Kandigai aluminium wheels plant, increasing annual capacity from 5 lakh to 7 lakh wheels, with completion expected by the end of the next quarter.
The company plans to expand capacity to 10 lakh wheels per annum by FY27. Wheels India already has an established relationship with Topy through a steel wheels joint venture, WIL Car Wheels Limited, in which it holds a 74% stake, focused on supplying steel wheels to Japanese OEMs in India.
About the company
Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger vehicles, and construction equipment, along with air suspension systems for trucks and buses. The company also produces industrial components for the construction and wind energy sectors, with manufacturing facilities located across Tamil Nadu, Maharashtra, Uttar Pradesh, and Uttarakhand.
The company reports a ROCE of 16.1% and a ROE of 12.7%, with a debt-to-equity ratio of 0.79. The stock trades at a P/E of 19.3, which is lower than the industry average P/E of 30.0, indicating relatively reasonable valuation.
The company reported healthy year-on-year performance for Q2 FY26. Sales grew 8% to Rs. 1,173 crore from Rs. 1,084 crore in Q2FY25. EBITDA increased by 11% to Rs. 84.2 crore compared with Rs. 76.1 crore a year ago. Net profit rose sharply by 27% to Rs. 27.8 crore from Rs. 21.9 crore, while EPS also climbed 27% to Rs. 11.37 from Rs. 8.97.
Written by Manideep Appana
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