Tube Investments of India Q1 Results Review - Operationally Weak, Led By Lower Revenue Growth: Motilal Oswal
TI-1 revenue to grow ~15% YoY over the next few years.
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Motilal Oswal Report
Tube Investments of India Ltd.’s Q1 FY24 results were negatively impacted by low revenues across key businesses such as engineering (due to steel price adjustment) and metal formed (weakness in two-wheelers).
However, the underlying recovery in the auto, especially two-wheeler volumes, and exports are expected to drive revenue and margins recovery over the next few quarters to over 13% by Q4 FY24.
We have lowered our FY24E/FY25E consolidated earnings per share estimates by 3% each, negatively impacted by 4% cut in standalone revenue, due to moderation in revenue growth in key businesses.
We reiterate our 'Buy' rating with a target price of Rs 3,655 (September-25E SOTP).
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