Motilal Oswal's research report on Tube Investments of India
TIINDIA’s 1QFY25 result was operationally in line, though adj. PAT was slightly lower at INR1.5b (est. INR1.6b). The engineering business saw a robust ~11% YoY growth, and the mobility segment showed signs of recovery. However, the metal-formed division struggled due to weak domestic PV demand. The company remains optimistic about achieving double-digit growth in core business revenue in the coming years. We have reduced our FY25/FY26 consolidated EPS estimates by 5% each to factor in moderate demand in domestic PVs and lower other income. The stock trades at 67x/54x FY25E/FY26E consol. EPS. We reiterate our BUY rating and a TP of ~INR4,740 (premised on Jun’26E SoTP).
Outlook
The stock trades at 67x/54x FY25E/FY26E consolidated EPS. Reiterate BUY rating and a TP of ~INR4,740 (premised on June’26E SOTP, based on 36x for the tandalone business, valuing listed subsidiaries at 20% HoldCo discount and adding INR351/share for the three EV businesses).
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