Tube Investments of India Limited

Industrials — Conglomerates · NSE

₹2,197.30+₹12.70 (+0.58%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Tube Investments of India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tube Investments of India Limited, together with its subsidiaries, engages in the manufacture and sale of engineering, mobility, and metal formed products in India and internationally.

IndustryConglomerates

SectorIndustrials

Employees3,153

Annual revenue₹22,221 Cr

How does it make money?

Turns over ₹22,221 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 3,153 employees supports ₹7.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.05 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 17.6% and earnings to grow about 51.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.6%

Est. earnings growth+51.4%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +54% while net margin moved -57% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect-57%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.2% is weak
✗ ROE has fallen by 16.0 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

70.3x

3Y Median

71.9x

40 monthly readings · mean 69.6x · range 39.5x–90.3x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 71.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 21% below the peer median of 88.8x.

vs. its own history

Fair

71.9x median over 40 months · -2%

vs. sector peers

Cheap

88.8x median of 3 peers · -21%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 32% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 24.2% to 8.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.3% to 12.8% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴High leverageFinancial
Debt/Equity of 5.36x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 105% against revenue up 54% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹272 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 111% against revenue up 54% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.8% to 11.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.36x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 105% against revenue up 54%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 24.2% to 8.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.5% CAGR
Latest reported year was 16.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹272 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹42,534 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

70.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.49x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹31.27

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.36x

High

High leverage

Revenue Growth (YoY)

16.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-15.3%

Falling

Profits are shrinking

Dividend Yield

0.16%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹272 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

29.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.0%

Average

Average margins

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2381.3 / 2611.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,431 Cr	₹16,335 Cr	₹18,915 Cr	₹22,221 Cr	+15.5%
EBITDA	₹1,989 Cr	₹2,129 Cr	₹2,219 Cr	₹2,588 Cr	+9.2%
EBITDA Margin	13.8%	13.0%	11.7%	11.6%	—
PAT (Net Profit)	₹956 Cr	₹1,206 Cr	₹674 Cr	₹637 Cr	-12.6%
EPS	₹49.39	₹62.31	₹34.8	₹32.9	-12.7%
ROE	24.2%	23.6%	12.2%	8.2%	—
ROCE	29.3%	21.1%	16.0%	12.8%	—
Total Debt	₹1,126 Cr	₹2,104 Cr	₹3,097 Cr	₹761 Cr	-12.2%
Free Cash Flow	₹970 Cr	₹455 Cr	-₹28 Cr	-₹272 Cr	—

🟢 Revenue has grown at 15.5% a year over 3 years.

🟢 EBITDA has grown at 9.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.8% to 11.6% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 12.6% a year over 3 years.

🔴 EPS has shrunk at 12.7% a year over 3 years.

🔴 ROE has fallen from 24.2% to 8.2% over 3 years (-16.0 pts).

🔴 ROCE has fallen from 29.3% to 12.8% over 3 years (-16.5 pts).

🟢 Total Debt has shrunk at 12.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹970 Cr to -₹272 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,487 Cr

Total Liabilities

₹7,285 Cr

Cash & Equivalents

₹532 Cr

Operating Cash Flow

₹1,161 Cr

Capex

-₹1,433 Cr

Shareholding (proxy)

Institutional Holding

38.9%

Insider Holding

43.9%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹3.5

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹3,288.83

+49.7% vs CMP

Target Range

₹2,682 – ₹3,649

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Tube Investments of India Q4 FY2026 Earnings Call: Revenue Growth, EV Scale-Up, and Strategic Updates

scanx.trade, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tube Investments of India shares surge 8% after Q1 earnings. What Motilal Oswal is saying

The Economic Times, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Buy Tube Investments of India; target of Rs 3379: Motilal Oswal

Moneycontrol.com, 18 Aug

Tube Investments share price rallies 9% post Q1 earnings commentary

Business Standard, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why Tube Investments of India Share Price is Rising

Equitymaster, 18 Aug

Tube Investments of India plans Rs 600-700 crore capex in FY27

The New Indian Express, 17 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑