TUBE INVESTMENT OF INDIA LTD.
- Tube Investment of India Ltd. Belongs to Murugappa Group is a Chennai based Indian Conglomerate. Being a market leader in several of them it has a total of 28 businesses and has manufacturing facilities spread across 13 states in India.
It Has Classified in Four Business It Shows:
- One is the engineering business where it produces precision tubes, which used in automotive industry and general engineering industry.
- The second business is cycle business where company has acquired 30-31% of market share. Last year it sold about 4.5 million cycles.
- Third is a metal formed product business wherein the company manufactures automotive chains, industrial chains and car doorframes. In the car doorframes business the company is a market leader with a market share of almost 60% and supplies to almost all the major passenger car manufacturers.
- The fourth is a finance business – it holds 54.5% of equity stake in its subsidiary Cholamandalam Investment, the company does vehicle financing, home loans and as well as gold loan business. We can expect considerable increase in bottom-line due to Cholamandalam Investments.
- Recently company has undertaken a capex of Rs 5 billion whose impact we will witness soon in upcoming years. Expectations Company has showed consistent growth in NPM & bottom-line. EPS has grown from 3.06 to 9.7 over five year’s period nearly 316%. For 2014-15, we are expecting the EPS to be around 19-20.
- It Shows Expanding Triangle pattern at 165-170 levels. We Bet the Share Grab at 173 for Target 195 In Duration of 6-8 Months Target 225-250 For Long Time Traders in Period 1-2 Years.