The stock has declined 2.72% in three sessions, from its recent closing high of Rs 609.05 recorded on 21 February 2025.
In the last six months, the stock has corrected by 30.30% while the benchmark S&P BSE Sensex and the S&P BSE 500 index have corrected by 8.69% and 14.23%, respectively.
In a regulatory filing made during market hours today, Wheels India informed that the credit rating agency ICRA has affirmed the company’s long-term rating at '[ICRA] A’ with 'stable’ outlook.
The agency has also affirmed the company’s short-term rating at '[ICRA] A2+’.
ICRA stated that the rating outstanding on the fixed deposits and bank facilities of Wheels India (WIL) considers the expected improvement in its overall credit profile over the near to medium term.
The margins are expected to improve going forward aided by periodic price negotiations with customers, continued focus on cost optimisation, improvement of proportion of exports and better operating leverage.
ICRA expects the debt protection metrics to improve over the near to medium term supported by the factors mentioned above and its healthy business profile marked by established position as one of the largest steel wheel rim manufacturers in India, and its diversified presence across segments, customers and products.
The ratings remain supported by WIL’s exceptional financial flexibility arising from its parentage. The company belongs to the T S Santhanam faction (TSF) of the larger TVS Group of Companies –an established name in the domestic auto ancillary industry.
The ratings, however, remain constrained by the company’s moderate debt metrics and moderate operating margins, albeit improvement in YTD FY2025. Further, the company reported a YoY decline in consolidated operating income in YTD FY2025 crore impacted by demand slowdown in overseas markets.
The slowdown in new vehicle registrations in FY2025 could result in some moderation in revenues for WIL in the near term. Its revenues are also exposed the inherent cyclicality of the domestic auto industry.
Nevertheless, the company’s established relationship with its customers, healthy order book, new customer additions, and increase in share of business with existing customers as part of vendor diversification initiatives by global OEMs mitigate the revenue risk to an extent and are likely to support healthy medium-term revenue prospects.
Wheels India (WIL) is among the largest manufacturers of steel wheel rims in the country and is present across automotive (except 2W), tractor and earthmover segments. Further, WIL also manufactures air suspension systems for luxury buses in India, supplies fabricated and machined parts for windmills, and produces bogie frame and bogie bolsters for Indian Railways.