Buy Tube Investments of India; target of Rs 3215: Motilal Oswal

Motilal Oswal's research report on Tube Investments of India

Tube Investments of India (TIINDIA)’s 3QFY23 performance was hit by tepid revenue growth across all businesses as well as operating deleverage that hurt margins. Traction in revenue is likely to revive, though, driven by recovery in the underlying auto volumes. However, exports might be subdued in the near term. Launches in the EV segment (3Ws, CVs and tractors) are lined-up over the next six months.

Outlook

We have raised our FY23E/FY24E EPS by 10%/5%, respectively, driven by upgrades in our estimates for CG Power despite downgrades in the S/A business by 8% each. Maintain BUY with a TP of INR3,215 (Dec-24E).