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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tube Investments of India Ltd

Basic Stock Data

Last Updated: June 12, 2024, 11:18 am

Market Cap 81,040 Cr.
Current Price 4,190
High / Low4,223/2,729
Stock P/E98.0
Book Value 264
Dividend Yield0.09 %
ROCE26.0 %
ROE18.3 %
Face Value 1.00
PEG Ratio3.20

Competitors of Tube Investments of India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales2,7332,4373,2633,4103,3933,7763,7673,6433,7783,8984,3064,1974,490
Expenses2,4562,1572,8832,9693,0423,3793,2563,1743,2883,4313,7443,7284,039
Operating Profit277281380441351397511469489467562469451
OPM %10%12%12%13%10%11%14%13%13%12%13%11%10%
Other Income122526463729795188425960977
Interest2524212220912111111131315
Depreciation9797919176859295124109118122119
Profit before tax166185294374292332414460542389490943395
Tax %14%27%21%-4%23%26%33%29%12%27%30%13%31%
Net Profit143135232390225247277324477284341825271
EPS in Rs7.016.229.6514.469.2710.0811.0812.1916.1411.1213.6227.509.80

Last Updated: June 9, 2024, 5:12 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:14 am

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales04,4795,0005,7734,7506,08312,44714,96516,890
Expenses04,0734,6265,2404,1695,44210,99713,08114,942
Operating Profit04063745335826411,4501,8831,949
OPM %9%7%9%12%11%12%13%12%
Other Income04155624070147318787
Interest07762563447995852
Depreciation0149154162185251347396465
Profit before tax02212143784034121,1521,7482,218
Tax %21%27%34%22%26%14%24%22%
Net Profit01741562513133059911,3251,723
EPS in Rs7.8612.8116.3114.8539.8549.4862.08
Dividend Payout %0%17%20%21%24%9%7%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-10.34%60.90%24.70%-2.56%224.92%33.70%30.04%
Change in YoY Net Profit Growth (%)0.00%71.24%-36.20%-27.26%227.47%-191.21%-3.67%

Growth

Compounded Sales Growth
10 Years:%
5 Years:24%
3 Years:41%
TTM:13%
Compounded Profit Growth
10 Years:%
5 Years:28%
3 Years:43%
TTM:-13%
Stock Price CAGR
10 Years:%
5 Years:62%
3 Years:53%
1 Year:45%
Return on Equity
10 Years:%
5 Years:22%
3 Years:24%
Last Year:18%

Last Updated: June 13, 2024, 11:31 am

Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital01919191919191919
Reserves-01,1691,2541,4571,7152,2933,0523,9314,405
Borrowings08517766114141,972871726821
Other Liabilities01,0971,2631,2639324,3494,9325,5437,039
Total Liabilities03,1353,3123,3493,0808,6348,87410,22012,284
Fixed Assets01,3061,3581,4291,5153,4263,3243,5934,278
CWIP034906958152128191209
Investments02021341321863695427291,630
Other Assets01,5931,7301,7191,3214,6874,8805,7076,168
Total Assets03,1353,3123,3493,0808,6348,87410,22012,284

Reserves and Borrowings Chart

Tube Investments of India Ltd Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -03834094935962578961,386
Cash from Investing Activity 0316-181-196-246-80-79-850
Cash from Financing Activity 0-685-291-280-284304-921-75
Net Cash Flow014-631766481-104461

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.00-445.00-402.00-78.00168.00640.00-870.00-725.00-895.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days50514140745252
Inventory Days1019384751115850
Days Payable107117969422410386
Cash Conversion Cycle44262922-38816
Working Capital Days33182118-28-1718
ROCE %26%13%20%21%13%26%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.66%46.66%46.49%46.48%46.46%46.45%46.45%46.44%46.21%46.13%46.12%45.11%
FIIs25.45%25.82%25.21%26.09%26.06%25.90%26.30%28.82%28.92%29.41%30.42%28.83%
DIIs15.02%14.82%15.68%14.95%14.34%14.70%14.06%11.76%11.79%12.25%11.47%14.14%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.45%0.45%0.45%0.45%0.45%0.45%
Public12.87%12.70%12.61%12.48%13.13%12.95%12.74%12.55%12.64%11.77%11.55%11.48%
No. of Shareholders31,43538,77140,45649,19058,98054,97277,07191,12283,88975,34376,47279,168

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund3,267,5592.781273.71635,5092024-06-20414.16%
Motilal Oswal Flexi Cap Fund2,275,0009.71886.81635,5092024-06-20257.98%
Motilal Oswal Midcap Fund1,975,0009.66769.86635,5092024-06-20210.77%
Axis ELSS Tax Saver Fund1,572,5431.83612.99635,5092024-06-20147.45%
SBI Magnum Midcap Fund1,400,0003.42545.73635,5092024-06-20120.3%
SBI Blue Chip Fund1,235,3811.11481.56635,5092024-06-2094.39%
Sundaram Mid Cap Fund914,4993.53356.48635,5092024-06-2043.9%
Sundaram Mid Cap Fund - Institutional Plan914,4993.53356.48635,5092024-06-2043.9%
Nippon India Growth Fund734,5141.18286.32635,5092024-06-2015.58%
UTI Mid Cap Fund635,5092.46247.72635,5092024-06-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)49.5039.8915.1316.3112.86
Diluted EPS (Rs.)49.4039.8915.1016.2812.85
Cash EPS (Rs.)90.1369.6328.8426.5322.44
Book Value[Excl.RevalReserv]/Share (Rs.)256.63193.12130.0796.1383.73
Book Value[Incl.RevalReserv]/Share (Rs.)256.63193.12130.0796.1383.73
Revenue From Operations / Share (Rs.)774.97649.32315.52252.81307.66
PBDIT / Share (Rs.)105.1779.9638.7134.1031.85
PBIT / Share (Rs.)84.6761.8525.6724.2423.25
PBT / Share (Rs.)82.8959.8821.3821.4620.59
Net Profit / Share (Rs.)69.6351.5315.8016.6713.83
NP After MI And SOA / Share (Rs.)49.4939.8614.8516.3012.81
PBDIT Margin (%)13.5712.3112.2613.4810.35
PBIT Margin (%)10.929.528.139.587.55
PBT Margin (%)10.699.226.778.486.69
Net Profit Margin (%)8.987.935.006.594.49
NP After MI And SOA Margin (%)6.386.134.706.444.16
Return on Networth / Equity (%)24.1825.0313.1817.6616.29
Return on Capital Employeed (%)29.3828.5614.0624.2625.06
Return On Assets (%)9.328.643.169.917.10
Long Term Debt / Equity (X)0.010.110.420.010.08
Total Debt / Equity (X)0.150.260.610.150.34
Asset Turnover Ratio (%)1.050.941.211.391.66
Current Ratio (X)1.270.970.811.121.07
Quick Ratio (X)0.980.690.610.660.57
Inventory Turnover Ratio (X)4.504.514.563.744.54
Dividend Payout Ratio (NP) (%)7.078.780.0026.0517.56
Dividend Payout Ratio (CP) (%)4.996.030.0016.2310.50
Earning Retention Ratio (%)92.9391.220.0073.9582.44
Cash Earning Retention Ratio (%)95.0193.970.0083.7789.50
Interest Coverage Ratio (X)47.8326.4718.2521.1011.32
Interest Coverage Ratio (Post Tax) (X)28.5517.729.4712.045.86
Enterprise Value (Cr.)49805.0532137.0124060.645456.427720.09
EV / Net Operating Revenue (X)3.332.573.961.151.34
EV / EBITDA (X)24.5220.8432.248.5112.91
MarketCap / Net Operating Revenue (X)3.282.503.781.081.24
Retention Ratios (%)92.9291.210.0073.9482.43
Price / BV (X)12.4310.1810.582.974.86
Price / Net Operating Revenue (X)3.282.503.781.081.24
EarningsYield0.010.020.010.050.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 4,738.84

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 13.10% compared to the current price 4190

Intrinsic Value: 6,191.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 47.76% compared to the current price ₹4190

Last 5 Year EPS CAGR: 30.65%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.88%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 7.88, which is a positive sign.
  3. The company has higher reserves (2,201.11 cr) compared to borrowings (790.78 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (7.33 cr) and profit (181.33 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 13.38, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tube Investments of India Ltd:
    1. Net Profit Margin: 8.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.38% (Industry Average ROCE: 0%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 24.18% (Industry Average ROE: 0%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 28.55
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.98
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 98.0 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Tube Investments of India Ltd. is a Public Limited Listed company incorporated on 06/10/2008 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L35100TN2008PLC069496 and registration number is 069496. Currently Company is involved in the business activities of Casting of iron and steel. Company’s Total Operating Revenue is Rs. 6359.33 Cr. and Equity Capital is Rs. 19.29 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cycles & AccessoriesDare House, 234 NSC Bose Road, Chennai (Madras) Tamil Nadu 600001investorservices@tii.murugappa.com
http://www.tiindia.com
Management
NamePosition Held
Mr. M A M ArunachalamExecutive Chairman
Mr. Vellayan SubbiahExecutive Vice Chairman
Mr. Mukesh AhujaManaging Director
Mr. K R SrinivasanPresident & Wholetime Director
Mr. Anand KumarNon Executive Director
Mr. Sanjay JohriNon Executive Director
Ms. Sasikala VaradachariNon Executive Director
Mr. Tejpreet Singh ChopraNon Executive Director

FAQ

What is the latest fair value of Tube Investments of India Ltd?

The latest fair value of Tube Investments of India Ltd is ₹4738.84.

What is the Market Cap of Tube Investments of India Ltd?

The Market Cap of Tube Investments of India Ltd is 81,040 Cr..

What is the current Stock Price of Tube Investments of India Ltd as on 23 June 2024?

The current stock price of Tube Investments of India Ltd as on 23 June 2024 is ₹4,190.

What is the High / Low of Tube Investments of India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tube Investments of India Ltd stocks is 4,223/2,729.

What is the Stock P/E of Tube Investments of India Ltd?

The Stock P/E of Tube Investments of India Ltd is 98.0.

What is the Book Value of Tube Investments of India Ltd?

The Book Value of Tube Investments of India Ltd is 264.

What is the Dividend Yield of Tube Investments of India Ltd?

The Dividend Yield of Tube Investments of India Ltd is 0.09 %.

What is the ROCE of Tube Investments of India Ltd?

The ROCE of Tube Investments of India Ltd is 26.0 %.

What is the ROE of Tube Investments of India Ltd?

The ROE of Tube Investments of India Ltd is 18.3 %.

What is the Face Value of Tube Investments of India Ltd?

The Face Value of Tube Investments of India Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tube Investments of India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE