Tube Investments of India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Tube Investments of India (TIINDIA) is positioned for stable growth, bolstered by management's optimistic outlook and strategic initiatives across its divisions. Key developments include the Engineering Division's expansion into high-potential sectors such as Drilling and Mining, and the establishment of TI Medical Private Limited, which aims to capture global markets in medical devices. The Mobility Division's focus on premium cycles and electric vehicles, particularly in the heavy truck segment, further supports revenue growth. Vista's financial outlook anticipates consistent revenue growth aligned with historical performance, stable margins, and a fair valuation, reflecting the company's solid market position and low leverage. However, challenges such as EV deployment hurdles and delays in the railway business scale-up could impact short-term performance. The industrial machinery sector's robust growth trajectory, driven by technological advancements and increasing demand, provides a favorable backdrop for TIINDIA. Over the next 12-24 months, key opportunities include the ramp-up of the three-wheeler business and the medical devices segment, while watchpoints include financing issues in the EV space and competitive pressures in the industrial machinery market
Why We Like This Stock
- Expansion into high-potential sectors like Drilling and Mining enhances revenue diversification
- The establishment of TI Medical Private Limited positions the company to capture global market opportunities in medical devices
- Strong order book in the electric vehicle segment supports future revenue growth
Things To Watch Out For
- Challenges in EV deployment due to financing and infrastructure issues may hinder growth
- Delays in the railway business scale-up could impact revenue timelines
- Sluggish performance in the Metal Formed Products Division may affect overall margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 16,890 | 19,465 | 22,847 | 23,905 | 27,093 |
| Profit Before Tax (Cr.) | 1,678 | 1,666 | 1,918 | 1,761 | 2,065 |
| PBT Margin | 9.9% | 8.6% | 839.5% | 7.4% | 7.6% |
| Net Profit (Cr.) | 1,938 | 1,214 | 1,181 | 1,321 | 929 |
| Earnings Per Share | 73.1 | 43.0 | 36.2 | 40.9 | 48.0 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Tube Investments of India Limited, together with its subsidiaries, engages in the manufacture and sale of precision engineered and metal formed products to automotive, railway, construction, agriculture, etc. in India. It operates through eight segments: Engineering, Metal Formed Products, Mobility, Gear and Gear Products, Power Systems, Industrial Systems, Medical, and Semiconductors. The Engineering segment offers cold rolled steel strips, precision steel tubes, cold drawn welded tubes, electric resistance welded tubes, and tubular components. The Metal Formed Products segments provides automotive chains, fine blanked and stamped products, roll-formed car doorframes, and cold rolled formed sections. The Mobility segment offers standard bicycles; special bicycles, including alloy bikes; specialty performance bikes; fitness equipment; and electric bicycles, as well as cycling accessories and spare parts. The Gear and Gear Products segment provides gears, gear boxes, gear motors, and gear assemblies. The Power Systems segment offers transformers and switchgears, as well as engages automation and turnkey projects. The Industrial Systems segment provides electric motors, alternators, drives, and traction electronics, as well as SCADA solutions. The Electric Vehicle segment offers electric three-wheelers, tractors, and commercial vehicles. The Medical segment is involved in the provision of medical consumables; and contract development and manufacturing operations of active pharmaceutical ingredients. It also offers industrial chains, optic lens, TMT bars and TI machine building solutions. The company was founded in 1900 and is based in Chennai, India.