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The market expects Tube Investments to do better than it ever has.
At today’s share price, buyers are assuming Tube Investments grows about 23% a year, forever. Over the last ten years it actually grew about 19% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 23% growth, against 19% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Tube Investments' revenue went from ₹5,116 crore to ₹22,847 crore — it compounded at about 21% a year over 8 years.
- Biggest swing factor: CG Power. Main risk: EV losses.
01Tubes, chains, bicycles and CG Power
Tube Investments of India, part of Chennai's Murugappa group, makes precision steel tubes, automotive and industrial chains, metal-formed parts and bicycles under brands such as BSA and Hercules.
It took control of CG Power in 2020, and through TI Clean Mobility it is building electric three-wheelers, tractors and trucks.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Tube Investments, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Tube Investments' record, in plain numbers
Between FY2018 and FY2026, Tube Investments' revenue went from ₹5,116 crore to ₹22,847 crore — it compounded at about 21% a year over 8 years. Net profit grew from ₹156 crore to ₹1,118 crore, about 28% a year — faster than revenue, so margins widened. In FY2026 it kept 4.9% of revenue as net profit — against a low of 3.0% in FY2018 and a high of 10.2% in FY2024. The latest year added 17.4% to revenue, well behind its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 5,116 | 156 | 3.0% |
| FY2019 | 5,775 | 251 | 4.3% |
| FY2020 | 4,750 | 313 | 6.6% |
| FY2021 | 6,083 | 305 | 5.0% |
| FY2022 | 12,525 | 991 | 7.9% |
| FY2023 | 14,965 | 1,325 | 8.9% |
| FY2024 | 16,890 | 1,723 | 10.2% |
| FY2025 | 19,465 | 1,054 | 5.4% |
| FY2026 | 22,847 | 1,118 | 4.9% |
04How Tube Investments gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Tube Investments' value
CG Power
Its controlling stake drives consolidated results.
Engineering demand
Tubes and chains follow auto and industrial cycles.
EV ventures
TI Clean Mobility is an early-stage bet.
Capital allocation
The group's record of turnarounds.
06What could go wrong
- EV losses. New ventures need investment.
- Auto cycles. Slowdowns hit core products.
- Holding-company discount. Markets may value the group below its parts.
07What the full Tube Investments valuation shows
Sign in free to see the complete Tube Investments valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Tube Investments' value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against CG Power, Bharat Forge and other engineering companies
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Tube Investments
What does Tube Investments make?
Precision tubes, chains, metal-formed parts and bicycles.
What is Tube Investments' link to CG Power?
It has controlled CG Power since 2020.
What is TI Clean Mobility?
Its electric-vehicle business for three-wheelers, tractors and trucks.
Is Tube Investments overvalued?
At ₹2,257 the market is pricing in roughly 23% sustained growth, against the ~19% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Tube Investments?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Tube Investments carry?
Debt to equity stands at 0.01, against 0.01 at the start of the period — the balance sheet is a core input to the cost of capital used here.