Mehabe score: 4 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Tube Investments of India Limited (TII) is one of India’s leading manufacturers of a wide range of products for major industries such as Automotive, Railway, Construction, Mining, Agriculture, etc. The Company’s 3 main verticals are Engineering, Metal Formed Products and Bicycles. In line with its growth strategies, the Company has forayed into TMT bars and Truck Body Building business and is additionally exploring opportunities in optic lens and other vision systems for the Auto industry.
Main Points
Engineering Division (44% of revenues) #
The Engineering Segment of the Company consists of cold rolled steel strips and precision steel tubes viz., Cold Drawn Welded tubes (CDW) and Electric Resistance Welded tubes (ERW). It is also engaged in the manufacture of large diameter welded tubes mainly for non-auto application which are largely imported.Site:TIINDIA
Market Cap:
Rs 24,022 cr
Price:
1244.0
Trading pe:
104.0x
Book-value:
91.8/share
Div yield:
0.28 %
Earning yield:
1.38%
Face-value:
1.00/share
52week high:
1450.00
52week low:
389.90
Technical Analysis
Stock trades at 1244.0, above its 50dma 1194.14. It also trades above its 200dma 950.59. The stock remains bullish on techicals
The 52 week high is at 1450.00 and the 52week low is at 389.90
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 19.17%
Weakness
– Stock is trading at 13.56 times its book value
-Promoter holding has decreased over last 3 years: -3.46%
Competition
– The industry trades at a mean P/E of 104.1x. Tube Investments trades at the industry’s max P/E of 104.12x. TIINDIA trades at a P/E of 104.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 6.0. TIINDIA has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 4.6%. The max 1- month return was given by Tube Investments: a return of 5.34 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2733.0 cr compared to Rs 1031.0 cr for period ended Mar 2020, a rise of 165.1%
Operating Profits reported at Rs 263.0 cr for period ended Mar 2021 vis-vis 127.0 for period ended Mar 2020 .
Operating Margins contracted -269.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 7.46 compared to Rs 5.57 for previous quarter ended Dec 2020 and Rs 3.16 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 6083.0 cr for period ended Mar 2021 vis-vis sales of Rs 4750.0 cr for the period ended Mar 2020, a healthy growth of 21.9%. The 3 year sales cagr stood at 6.8%.
Operating margins shrank to 10.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 286.0 cr for period ended Mar 2021 vis-vis sales of Rs 306.0 cr for the period ended Mar 2020, falling 7.0%.
Company recorded a healthy Net Profit CAGR of 24.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 209% on a 1 Year basis vis-vis a return of 74% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is -24% vis-vis a compounded profit growth of 27% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 25.45% vis-vis 23.22% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 12.87% vis-vis 13.06% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 19.17% – Stock is trading at 13.56 times its book value
-Promoter holding has decreased over last 3 years: -3.46%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1194.14 and is trading at 1244.0, thus bullish price action wise.
