Tube Investments (TIINDIA)
CyclicalFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,733.5 |
| Market Cap | ₹52,912.99 Cr |
| P/E Ratio | 87.72 |
| ROCE | 21.8% |
| ROE | 10.8% |
| Dividend Yield | 0.16% |
| Profit Growth | -5.63% |
| Debt/Equity | 0.28 |
| Sales Growth | 17.42% |
| Free Cash Flow | ₹-402 Cr |
| Promoter Holding | 44.06% |
| 52-Week Range | ₹2,164.9 — ₹3,419.9 |
| Sector | Auto Components |
| Book Value | ₹400.48 |
Strengths
- Strong revenue momentum: 5-year revenue CAGR of 26.19% and latest sales growth of 15.84%.
- Clean balance sheet: Debt/equity of just 0.09 and Altman Z-score of 4.14 indicate low financial stress.
- Good operational efficiency with ROCE of 21.80%, supported by a Piotroski F-score of 7/9.
- Promoter holding of 44.06% aligns management interests with minority shareholders.
Concerns
- Extremely expensive valuation: P/E of 86.21, P/B of 10.79, and price far above the Graham Number of ₹446.18 implies a negative margin of safety of -517.11%.
- Profits have declined sharply: Net profit growth is -26.93%, and latest quarterly net margin is only around 4.8% on sales of ₹5,801 Cr.
- Negative free cash flow of ₹-402 Cr signals that reported earnings are not being converted into cash.
- Negligible dividend yield of 0.13% offers no income cushion against valuation risk.
AI Analysis
Let me start with the obvious: at ₹3,086 with a P/E of 86 and a price-to-book of 10.8, I need exceptionally strong fundamentals to justify a purchase. Does Tube Investments deliver? Not quite. The company has grown sales at a 26% five-year CAGR and still posted 15.8% growth in the latest year, which is impressive. ROCE of 21.8% and a debt/equity of just 0.09 suggest a decent, conservatively financed business. But then I look at the profits: down 26.9%. The latest quarter's net profit of ₹279 Cr on sales of ₹5,801 Cr is a thin margin, and free cash flow is negative at ₹-402 Cr. This tells me growth is consuming cash rather than generating it. Graham would demand a margin of safety. The Graham Number is ₹446 compared to the current price, giving a negative margin of safety of 517%. Even using generous earnings power, the P/E of 86 and PEG of 25.5 leave almost no room for disappointment. The Piotroski score of 7 and Altman Z of 4.14 show the company is not in financial danger, but a good business is not necessarily a good investment at any price. With a dividend yield of only 0.13%, I am not being paid to wait. I would need profit growth to resume and cash generation to turn positive before I would consider this. It is a fine company, but at this price, it is not fine for me.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer