Buy Tube Investments of India; target of Rs 3680: Motilal Oswal

Motilal Oswal is bullish on Tube Investments of India has recommended buy rating on the stock with a target price of Rs 3680 in its research report dated November 05, 2025.

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November 06, 2025 / 20:55 IST

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Tube Investments of India

Tube Investments’ (TIINDIA) 2QFY26 PAT at INR1.86b came in line with our estimate of INR1.78b, even as EBITDA margin at 13.1% was ahead of our estimate of 12.2%. While the engineering business margin was in line, all other segments posted better-than-expected margins. We expect standalone revenue to pick up in the coming quarters, led by supplies to a new Hyundai Pune plant that is likely to commercialize from Oct’25, the ramp-up of a new CRSS plant, and the execution of a Railways order. Adjusted for stakes in CG Power and Shanti Gears, the standalone business is attractively valued at 11.5x/10.3x FY26E/FY27E EPS. We reiterate our BUY rating with a TP of ~INR3,680 (premised on Sep’27E SoTP; our valuation is based on 26x PER for the standalone business, valuing the listed subsidiaries at a 30% HoldCo discount).

Outlook

We reiterate our BUY rating with a TP of ~INR3,680 (premised on Sep’27E SoTP; our valuation is based on 26x PER for the standalone business, valuing the listed subsidiaries at a 30% HoldCo discount).

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