Shares of Tube Investments rose nearly 5 per cent today after financial services firm Motilal Oswal initiated coverage on the Murugappa Group firm with a ‘buy’ call. The brokerage gave a target price of Rs 1,900, an upside of 25 per cent against the current market price of Rs 1,516. The stock touched an intraday high of Rs 1587.5, rising 4.74 per cent on BSE today.
The share trades higher than 5 day and 20 day moving averages but lower than 50-day, 100-day and 200-day moving averages. The stock has gained 35.69 per cent in a year and fallen 10.36 per cent in 2022.
Market cap of the firm rose to Rs 30,323 crore on BSE. Total 5,463 shares changed hands amounting to a turnover of Rs 85.46 lakh on BSE. The stock hit a 52-week high of Rs 2,021 on January 4, 2022 and a 52-week low of Rs 1,064 on July 20,2021.
“Tube Investments has a diversified range of products under its three verticals – engineering (57 per cent of S/A FY22 revenue), metal forming products (19 per cent), bicycles (15 per cent) and others (9 per cent). It is the market leader in manufacturing precision steel tubes under engineering vertical with 60 per cent market share in telescopic front fork suspension; it is a significant player in car door frames and the largest player in fragmented industrial chains segment (35 per cent market share) under metal forming vertical. It is also the second-largest player in bicycle business,” Motilal Oswal said.
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Motilal Oswal expects revenues of the firm to grow 15 per cent on an annual basis for the next three years. It expects net profit to grow at an annual rate of 20 per cent in coming three years.
Tube Investments of India Limited is engaged in manufacturing a range of precision-engineered and metal-formed products. The company provides its products to industries such as automotive, railway, construction, mining and agriculture.