Category: Financial Modeling | Fundamental Analysis | Educational Report
Educational Disclaimer
Prepared under the FinOptions Financial Modeling Training Program for educational and learning purposes only. This report is not investment advice and has no commercial solicitation intent.
Report Details
- Prepared By: Vinay Virde
- Guided By: Mr. Gaurav Somani, CFA, FRM
Company Overview
Tube Investments of India Limited (TI India) is an engineering and manufacturing company that originated in 1959 through the merger of TI Cycles of India and Tube Products of India. The company is the flagship company of the Murugappa Group and has diversified operations across engineering, metal-formed products, mobility, gear & gear products, power systems, e-mobility and industrial systems.
TI India manufactures a wide range of products including precision steel tubes, automotive chains, bicycles, gears, gearboxes, power systems, electric motors and e-mobility products. The company also supplies precision tubes, including Electric Resistance Welded (ERW) and Cold Drawn Welded (CDW) tubes, to major automotive companies in India.
Company Details
| Particular | Details |
|---|---|
| Company Name | Tube Investments of India Limited |
| Incorporated | 6 October 2008 |
| Headquarters | Chennai, Tamil Nadu |
| Parent Organization | Murugappa Group |
| BSE Code | 540762 |
| NSE Code | TIINDIA / Tubeinvest |
| Website | www.tiindia.com |
Business Segments & Product Portfolio
1. Engineering
TI India’s engineering business focuses on precision tube manufacturing and caters primarily to industrial and automotive applications.
Products:
- Cold Drawn Welded Tubes
- Precision Steel Tubes
- Electric Resistance Welded Tubes
2. Metal Formed Products
The segment manufactures engineered metal components for automotive and industrial applications.
Products:
- Automotive Chains
- Roll-Formed Car Doorframes
- Cold-Rolled Formed Sections
3. Mobility
The mobility business caters to the bicycle and performance mobility market.
Products:
- Standard Bicycles
- Special Bicycles, including Alloy Bikes
- Specialty Performance Bikes
4. Gear & Gear Products
The company manufactures power transmission and automotive-related gear products.
Products:
- Gears
- Gear Boxes
- Gear Motors
- Gear Assemblies
5. Power Systems
The power systems business provides electrical and industrial power solutions.
Products:
- Transformers
- Switch Gears
- Automation & Turnkey Projects
6. E-Mobility
TI India has expanded into electric mobility solutions as part of its growth strategy.
Products:
- E-Three Wheelers
- E-Tractors
- E-M&HCV
7. Industrial Systems
The industrial systems business provides electrical and automation-related products.
Products:
- Electric Motors
- Alternators
- Drives
- Traction Systems
- Electronic & SCADA Solutions
Financial Performance
Financial Highlights
| Particulars | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue | 6,083 | 12,447 | 14,964 |
| EBIT Margin | 10% | 12% | 13% |
| Net Profit | 78 | 160 | 422 |
| Debt | 1,972 | 870 | 726 |
Key observation:
The company demonstrated strong financial improvement over the period shown. Revenue increased substantially from ₹6,083 Cr in 2021 to ₹14,964 Cr in 2023, while net profit increased from ₹78 Cr to ₹422 Cr. At the same time, debt declined from ₹1,972 Cr to ₹726 Cr, indicating a significant reduction in debt levels.
Shareholding Pattern
According to the information presented in the report:
- Promoter & Promoter Group: 46%
- FII: 30%
- Mutual Funds / AIF: 12%
- Others: 12%
The shareholding structure indicates significant promoter ownership along with substantial institutional participation through FIIs and mutual funds/AIFs.
Subsidiaries
The report highlights the following subsidiaries:
- CG Power
- Shanthi Gears
- Sedis
- TICMPL
- TI Medical
- 3XP Engine
- Inno Venture
Key Management
Mr. M. A. M. Arunachalam
Executive Chairman
Mr. Mukesh Ahuja
Managing Director
The company is part of the Murugappa Group and operates under a diversified industrial and engineering business structure.
Recent News
30 May 2024
Tube Investments of India announced, under Regulation 30 (LODR), an acquisition involving equity shares in M/s. IPLTech Electric Private Limited.
The development is relevant to the company’s expansion into the electric mobility and emerging technology-oriented businesses.
Stock Returns
| Period | Stock Return |
|---|---|
| 3 Months | 6% |
| 1 Year | 30% |
| 3 Years | 221% |
The stock performance shown in the report indicates strong long-term appreciation, with a particularly notable 221% return over the 3-year period.
Peers
The report identifies the following companies as peers:
- ABB
- Siemens
- BHEL
- Marathon
- GE
- Voltamp
Key Clients
The report mentions the following major clients:
- Bajaj Auto
- TVS
- Tata Steel
- SAIL
- L&T
- GE
Investment Highlights
Diversified Business Portfolio
TI India operates across multiple industrial sectors including engineering, mobility, metal forming, power systems, gears and e-mobility, reducing dependence on a single business segment.
Strong Financial Growth
Revenue and profitability have increased significantly over the period presented, with net profit rising from ₹78 Cr in 2021 to ₹422 Cr in 2023.
Improving Debt Position
Debt declined considerably from ₹1,972 Cr in 2021 to ₹726 Cr in 2023, strengthening the company’s financial position.
E-Mobility Opportunity
The company’s presence in electric three-wheelers, electric tractors and electric medium & heavy commercial vehicles provides exposure to the growing electric mobility ecosystem.
Murugappa Group Backing
Being the flagship company of the Murugappa Group provides the company with a strong industrial ecosystem and diversified business experience.
Strong Stock Performance
The report shows a 221% stock return over three years, reflecting significant market appreciation during the period covered.
Company Snapshot
| Category | Information |
|---|---|
| Company | Tube Investments of India Ltd. |
| Group | Murugappa Group |
| Headquarters | Chennai |
| Core Businesses | Engineering, Mobility, Metal Formed Products, Gears, Power Systems, E-Mobility, Industrial Systems |
| FY2023 Revenue | ₹14,964 Cr |
| FY2023 Net Profit | ₹422 Cr |
| FY2023 EBIT Margin | 13% |
| FY2023 Debt | ₹726 Cr |
| Promoter Holding | 46% |
| 3-Year Stock Return | 221% |
