Please refer to important disclosures at the end of this report
Tube Investments of India Limited (TI) is the flagship company of the Murugappa
group, The standalone operations has 3 divisions – Cycles, Engineering, and
Metal Formed Products. TI also owns 60% of Chola MS General Insurance (not
listed); ~ 46% stake in the listed Cholamandalam Investments & Finance
Company (CIFC) and 70% in Shanthi Gears. TI investment in listed entit
amounts to approx `8,600cr and Current market cap of TI is `10,440cr. CIFC
has delivered a healthy 16.7% CAGR in its loan book over last two years and a
healthy ROE of 17% in FY2016, with scope for further leveraging as capital
adequacy is strong at 18.73%. Further, in the private sector, Chola MS General
Insurance is the 7th largest company and well poised in an under-penetrated
economy. With an upturn in economic revival cycle, Engineering and metal
would also perform well. The TI has developed stable and consistent business
model. Therefore, TI has able to grow its profit steadily and generated hefty cash
flow and paid shareholder good dividend. Hence Buy.
CMP `557
Stock Info
Beta 0.5
Bloomberg Code TI IN
Shareholding Pattern (%)
Promoters 49.9
MF / Banks / Indian Fls 12.3
FII / NRIs / OCBs 14.6
Indian Public / Others 23.2
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Tube Investment 18.2 40.4 321.9
Nifty 8,810
Reuters Code TUBE.BO
Face Value (`)2
BSE Sensex 28,532
52 Week High / Low 575/352
Avg. Daily Volume 26,427
Market Cap (` cr) 10,442
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Tube Investment
Others | Miscellaneous
September 6, 2016
Tube Investment | Miscellaneous
September 6, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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