1. At a Glance
Tube Investments of India Ltd (TII) is that rare Indian corporate creature that refuses to stay in one lane. Cycles? Yes. Steel tubes? Obviously. EV tractors? Why not. Semiconductors? Hold my Murugappa coffee ☕.
As of Q3 FY26, the company sits at a market cap of ~₹51,000 Cr, trading around ₹2,637, down ~11% in the last 3 months and ~15% over 1 year — clearly the market has stopped clapping and started asking questions.
Financially, TII posted Q3 revenue of ₹5,801 Cr (+20.6% YoY) but PAT slipped to ₹279 Cr (-4.5% YoY). Margins are slimming, depreciation is bulking up, and the P/E of ~82× is still partying like it’s FY22.
ROCE stands at a healthy 21.8%, debt is low (₹705 Cr, D/E 0.09), and interest coverage is a comfy 28.9×. On paper, this is still a clean, high-quality balance sheet. On valuation? The market is clearly charging a Murugappa Conglomerate Premium™.
So the big question:
Is this a disciplined capital allocator building India’s next industrial giant — or a corporate buffet plate stacked a little too high?
2. Introduction – The Many Avatars of TII
Tube Investments is no longer just a “tube company.” That name is now mildly misleading — like calling Amazon an online bookstore.
Historically, TII built its reputation on precision engineering, steel tubes, and automotive chains. Predictable businesses. Cash-generating. Boring in the best way.
Then came the Murugappa instinct: “Why stop?”
Today, TII spans:
- Core engineering & metal products
- Cycles and mobility brands
- EV tractors, trucks, and 3-wheelers
- Medical & surgical consumables
- Semiconductor OSAT via CG Semi
This is less “focus” and more controlled chaos with a capital allocation spreadsheet.
To be fair, this isn’t random diversification. It’s backed by:
- Strong internal accruals
- Private equity-funded EV bets
- Government-supported semiconductor capex
- A promoter group
- known for long-term thinking
But the market is now asking for execution, not vision decks.
3. Business Model – WTF Do They Even Do?
Let’s break this industrial thali 🍱 properly.
Industrial Systems (31%)
Motors, alternators, traction systems, SCADA — the kind of heavy-duty stuff that keeps power plants, railways, and factories alive. Stable, infra-linked, and boringly profitable.
Engineering Division (28%)
Cold Drawn Welded (CDW) tubes, ERW tubes, large-diameter pipes. TII is the undisputed king of CDW tubes in India. This is the backbone business: high entry barriers, sticky customers, steady margins.
Power Systems (15%)
TII owns 58% of CG Power, which itself is a turnaround legend. Motors, transformers, industrial electrification — cyclical but currently enjoying an India capex tailwind.
Metal Formed Products (9%)
Automotive chains, cam chains, door frames, fine blanking. Market leader positions, but auto cycles dictate mood swings.
Mobility – Cycles & Fitness (4%)
Brands like BSA, Hercules, Montra. Solid market share (>25%), but low margins and brutally competitive.
Gears (3%)
Via Shanthi Gears — a quality niche play in industrial gearboxes.
Others (10%)
Here’s where the plot thickens:
- EV tractors, trucks, autos (via TI Clean Mobility)
- Medical & surgical consumables
- Industrial chains
- Semiconductor OSAT (CG Semi)
This bucket is either the future
