TUBE IN­VEST­MENTS

Flash News Investment - - RECOMMENDATIONS -

{Ticker : 540762 { BUY: ₹288.10 { Tar­get: ₹324

Tube In­vest­ments of In­dia , a Mu­ru­gappa Group com­pany, spe­cialises in en­gi­neer­ing, bi­cy­cles, me­tal formed prod­ucts. The con­sol­i­dated rev­enue for Q1FY19 came in at Rs 1,408 crore, as against Rs 1,266 crore in Q1FY18, reg­is­ter­ing an in­crease of 11.2 per cent YoY. Its EBITDA for the quar­ter rose by 33 per­cent YoY to Rs 139.35 crore, with cor­re­spond­ing mar­gin ex­pan­sion of 148 bps. The EBITDA mar­gin stood at 9.4 per cent. PAT grew by 54.3 per cent YoY and the mar­gin ex­panded by 117 bps to 4.27 per cent. The Large Di­am­e­ter Tubes di­vi­sion reg­is­tered a good vol­ume growth of 63%. For FY19, the com­pany has planned capex of Rs 200 crore for en­gi­neer­ing busi­ness and fine blank­ing. The or­der book is quite strong and the vol­umes are ex­pected to gear up. Con­sid­er­ing these fac­tors, we rec­om­mend it as a BUY.

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