Tube Investments of India shares tumble 11% post Q3 results

However, till Wednesday, in the past two trading days, the stock price of the Murugappa Group company - TII had rallied 14%, while in the past seven days had surged 20.4%.

Tube Investments of India share price today

 

Share price of Tube Investment of India (TII) slipped 11 per cent to ₹2,358.35 on the BSE in Thursday’s intra-day trade on profit booking after the cautious management commentary.

 

However, till Wednesday, in the past two trading days, the stock price of the Murugappa Group had rallied 14 per cent, while in the past seven trading sessions had surged 20.4 per cent.

 

At 02:32 PM; TII was quoting 10 per cent lower at ₹2,370, as compared to 0.61 per cent decline in the BSE Sensex. The stock of the company engaged in auto components & equipment business hit a 52-week low of ₹2,165.05 on January 27, 2026. It has corrected 31 per cent from its 52-week high of ₹3,419 touched on September 16, 2025.

 

Highlights from TII management commentary

 

The railway order, which was expected to be commissioned by January to March 2026 quarter (Q4FY26), is experiencing a delay of about one quarter due to a lack of readiness among other suppliers, Motilal Oswal Financial Services said.

 

TII may look to invest about ₹500- ₹750 crore in TI Clean Mobility Private Limited (TICMPL) from the standalone cash flows.

 

Its target would be to achieve a break-even in e-3W and heavy commercial vehicle (HCV) segments over the next 12-18 months and then look at break-even in the other two segments.

 

Its two key focus areas in this business include: 1) focus on reducing the BoM (Bill of Materials) cost, which will aid TII to position its products more competitively, and 2) expand channel and network presence pan-India.

 

The management confirmed that it would focus on the current TI-2 projects and not look at any further incremental avenues. It may consider TI3 opportunities if the same fits their requirements, the brokerage firm said.

 

Motilal Oswal Financial Services, ICRA view on TII

 

TII offers diversified revenue streams, with healthy growth in the core business (~11 per cent S/A PAT CAGR over FY25E-28E), growth in CG Power, and the optionality of new businesses incubated under the TI-2 strategy. Adjusted for stakes in CG Power and Shanti Gears, the standalone business is attractively valued at 8.2x / 7.5x FY27E/FY28E EPS, said analysts at Motilal Oswal Financial Services. The brokerage firm reiterated a BUY rating with a target price of ₹3,315 (based on Dec’27E SoTP; our valuation is based on 24x PER for the standalone business, valuing the listed subsidiaries at a 30 per cent HoldCo discount).

 

Going forward, TII is expected to witness a healthy revenue growth, aided by its existing and new products and businesses, market share gains and geographic expansions, although the auto component revenues would remain susceptible to the industry cyclicality. TII’s margins are expected to remain healthy, although further improvement over the medium-term is likely to be limited because of the initial gestational losses in the new businesses, ICRA said in the rationale.

 

The company has ventured into multiple new business areas including electric vehicles (EVs) and contract development and manufacturing operations (CDMO) as a part of its strategy to diversify revenues and expand in opportunistic sectors. The company is also setting up an outsourced semiconductor assembly and test (OSAT) facility through CG Power. Most of these businesses are in their initial stages of operation and are likely to incur gestational losses over the next few quarters at least, the rating agency said in the November 2025 rating rationale.    ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.