Tube Investments Of India Q3 Results Review - Miss Across All Businesses: Motilal Oswal

Motilal Oswal Report

Tube Investments of India Ltd.’s Q3 FY24 result was operationally weak as there was a miss across all business divisions. Amid near-term challenges, the next lag of growth is likely to be driven by new order wins, especially in the metal forms division and a recovery in underlying two-wheeler volumes.

We reduce our FY24E/FY25E consolidated earning per share by ~4% each to factor in near-term weakness in the standalone business.

We now its electric vehicle vertical (ex- small commercial vehicle) at Rs 350 per share in the sum-of-the-parts after assigning to its electric-heavy commercial vehicle business.

The stock trades at 64.3 times/51.6 times FY24E/FY25E consolidated EPS. We reiterate our 'Buy' rating and a target price of ~Rs 4,025 (premised on March- 26 SoTP).

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