SP Tulsian, sptulsian.com is bullish on Tube Investments. Tube Investments is a Murugappa Group company engaged in making of cycle and its components. It also makes metal formed and engineering products. The company posted good performance in Q1.
Tulsian told CNBC-TV18 that he likes company’s premier position in all the segments they are engaged into. So, taking these into consideration he believes the stock has limited downside in this carnage and based on Q1 numbers one can look for a target of Rs 160 in next six months.
It is also the holding company of Cholamandalam Investment and Finance Company, which is also now doing quite well from last couple of years. The consolidated numbers of the company have posted very good numbers with top line of close to about Rs 2060 crore.
The EBIT of the company is likely to be more than Rs 1000 crore because the EBITDA has been at Rs 250-260 crore for Q1. Going forward it should be having an EBITDA of more than Rs 1000 crore. Apart from that the share price has always been holding a bottom of at least Rs 130-135. Whenever the market recovers it should not have any specific problem as seen in any other sector like banking or capital goods. This is a consistent performer.
So may be things can again bounce back very quickly and with the shareholding pattern of 50 percent by the promoters and about 30-32 percent held by institutional investors one can have a very loyal set of investors.