Geojit recommended accumulate rating on Tube Investments of India with a target price of Rs 1746 in its research report dated March 14, 2022.
Tube Investment of India (TII) is a flagship company of Murugappa group. It is one of the leading product manufacture for major industries such as Automotive, Railway, Construction, Mining, etc. Q3FY22 revenue grew by 4.3%QoQ. This was largely driven by double digit growth from the export market and 8%QoQ from CG power and Industrials. Despite inflated RM cost, TII margin improved 128bps QoQ owing to superior product mix and cost pass through benefit. CG Industrial & Power Co, which provides power and industrial system related service in India and abroad, will continue to enhance TII product portfolio and
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revenue mix. TII’s entry into 3W electric manufacturing, will mark the group’s foray into automobile manufacturer from a ancillary player. Due to supply shortage extended the launch to Q2FY23.
Outlook
Given the strong fundamentals and strategic change adopted in the company’s segment mix, we value TII on a consolidated basis and recommend Accumulate with a target price of Rs1,746 at CMP
At 16:01 hrs Tube Investments of India Ltd was quoting at Rs 1,566.55, up Rs 9.80, or 0.63 percent.
It has touched an intraday high of Rs 1,584.00 and an intraday low of Rs 1,546.00.
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It was trading with volumes of 210,638 shares, compared to its thirty day average of 10,392 shares, an increase of 1,926.98 percent.
In the previous trading session, the share closed down 0.97 percent or Rs 15.30 at Rs 1,556.75.
The share touched its 52-week high Rs 2,021.00 and 52-week low Rs 1,052.00 on 04 January, 2022 and 19 April, 2021, respectively.
Currently, it is trading 22.49 percent below its 52-week high and 48.91 percent above its 52-week low.
Market capitalisation stands at Rs 30,226.62 crore.
