Tube Investments of India Q1 Results Review

Sep 01, 2023

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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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