Buy Tube Investments of India; target of Rs 4740: Motilal Oswal

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).