Tube Investments of India Ltd Research ReportIDirect Instinct

Tube Investments of India (TII), part of renowned Murugappa Group, has a diversified manufacturing presence across segments of cycles & accessories, engineering (precision steel tubes, strips), metal forming (door frames, fine blanking products, chains), gears & gearboxes. These four divisions contributed ~16%, ~46%, ~33%, ~5%, respectively, to gross consolidated revenue in FY20P. On overall basis, TII derives ~50% of revenues from auto space and remaining ~50% from non-auto space, including Railways. It is among top few players in each of its business divisions, including special gears through listed subsidiary Shanthi Gears. TII has, over the years, shown continuous improvement in capital efficiency (FY20P RoCE: ~18%) and cash generation (FY20P CFO: | 600 crore, 10% yield).