TIINDIA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.1

🏭 Fundamental Analysis of TIINDIA (Tube Investments of India Ltd.)

✅ Strengths

Strong Capital Efficiency

ROCE: 21.8% — solid operational performance

ROE: 12.8% — decent shareholder returns

Debt-to-Equity: 0.13 — very low leverage, financially sound

EPS: ₹34.8 — healthy earnings base

DII Sentiment: +0.66% — domestic institutions increasing stake

Price Near Support

Current Price: ₹2,868 vs Low: ₹2,400 — approaching support zone

RSI: 43.3 — neutral, with room for upside

⚠️ Concerns

Valuation Excess

P/E: 81.8 vs Industry PE: 31.2 — extremely expensive

Book Value: ₹286 vs Price: ₹2,868 — ~10x book

PEG Ratio: -23.2 — negative PEG suggests unreliable or declining growth

Weak Dividend Yield: 0.12% — negligible income for long-term holders

Profit Volatility

PAT Qtr: ₹47.7 Cr vs ₹194 Cr — -75.4% drop

Indicates cyclical or one-off impact

Technical Weakness

MACD: -20.6 — bearish momentum

Price below DMA 50 & DMA 200 — short-term downtrend

FII Sentiment: -0.62% — foreign investors reducing exposure

📉 Valuation & Ideal Entry Zone

Given the correction and technical indicators

Ideal Entry Zone: ₹2,500–₹2,700

Near recent support and psychological ₹2,500 level

Wait for MACD reversal or price reclaiming DMA 50 for confirmation

🧭 Long-Term Investment Outlook

TIINDIA is a quality industrial play with strong capital efficiency and low debt. However, the valuation is extremely stretched, and recent earnings volatility raises caution.

Holding Period: 2–4 years

Suitable for investors with high risk tolerance and long-term view

Monitor for earnings normalization and valuation compression

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹3,400–₹3,600

If price rebounds toward DMA 200 and valuation peak

Full Exit

If ROE drops below 10%

If PEG remains negative and EPS stagnates

If price breaks below ₹2,400 and fails to recover

Reinvest: Only if valuation normalizes and earnings growth resumes

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