Tube Investments of India shares surge 8% after Q1 earnings. What Motilal Oswal is saying
Tube Investments of India shares surged after the company reported a 5% year-on-year decline in Q1FY27 profit to Rs 158.62 crore, despite a 17.7% rise in revenue to Rs 2,227.63 crore. Motilal Oswal retained its Buy rating with a Rs 3,379 target, citing strong core business performance, 17% engineering volume growth and double-digit export growth.
On Tuesday, shares of Tube Investments of India soared over 8% to Rs 2,952 on the BSE following the company's Q1 earnings report. The Q1 profit after tax saw a 5% year-on-year decline to Rs 158.62 crore, while revenue from operations rose to Rs 2,227.63 crore, up from Rs 1,892.48 crore in the same period last year. Motilal Oswal, a domestic brokerage firm, maintained its Buy rating on the stock, targeting Rs 3,379, citing steady earnings despite a margin shortfall.
The company's Engineering business reported a 17% volume growth, and exports grew at double digits, with MFP revenue expanding at 11.5% during the quarter. Motilal Oswal highlighted the diversified revenue streams, citing solid growth in the core business, CG Power, and the potential growth from new businesses under the TI-2 strategy.
While auto demand has rebounded due to GST rate cuts, the near-term outlook for the sector remains cautious due to geopolitical uncertainties. Management remains optimistic about the near-term demand scenario, expecting steady CAGR growth in revenue, EBITDA, and PAT over FY26-28. The company is focused on scaling its core businesses and investing in emerging sectors such as medical, CDMO, EV mobility, and battery manufacturing.
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