Anand James, chief market strategist at Geojit Investments, has identified the formation of an 'Inverse Head & Shoulders' pattern on Tube Investments of India's weekly chart. According to James' analysis, the stock has surged over 9% to a weekly high of ₹2,989 and quoted with a gain of 6.5% at ₹2,929 levels this week. The technical pattern shows the stock rebounding from the right shoulder region, suggesting renewed buying interest and improving risk-reward dynamics. Key momentum indicators are turning supportive, with weekly Moving Average Convergence-Divergence (MACD) histograms showing signs of bearish exhaustion, indicating that selling pressure is gradually waning.
Motilal Oswal has reiterated its buy rating on Tube Investments of India with a target price of ₹3,379 in its latest research report. According to the brokerage's analysis, the recommendation is based on the company's diversified revenue streams and steady growth prospects across its core business and subsidiaries, including CG Power. The target price is premised on FY28E sum-of-the-parts (SoTP) valuation, with the brokerage applying a 15x price-to-earnings ratio for the standalone business and valuing listed subsidiaries at a 35% holding company discount. As per Motilal Oswal's analysis, despite near-term margin headwinds, Tube Investments offers diversified revenue streams with steady growth in the core business and CG Power, along with the optionality of new businesses incubated under the TI-2 strategy.
The company's first quarter FY27 adjusted profit after tax (PAT) of ₹160 crore came in line with Motilal Oswal's estimates, despite experiencing a 70 basis points miss on EBITDA margin. As reported by Motilal Oswal, the MFD segment was the worst-performing division, with segmental margins contracting 320 basis points year-on-year during the quarter. The brokerage notes that despite near-term margin headwinds, Tube Investments offers diversified revenue streams with steady growth in the core business and CG Power, along with the optionality of new businesses incubated under the TI-2 strategy.
Despite near-term margin headwinds, Tube Investments of India offers steady growth in the core business with approximately 7% sales and adjusted PAT compound annual growth rate (CAGR) over FY26-28E. According to Motilal Oswal's analysis, the company benefits from diversified revenue streams and the optionality of new businesses incubated under the TI-2 strategy, providing additional growth avenues beyond its traditional operations. The latest technical analysis by Geojit Investments suggests that if TI India sustains above the recent breakout zone, it could attract further momentum buying and move towards ₹3,150. The brokerage emphasizes that the company's diversified portfolio spans multiple segments, including its core business and CG Power, creating a balanced growth profile that supports the long-term investment thesis.
Motilal Oswal's target price of ₹3,379 is premised on FY28E sum-of-the-parts (SoTP) valuation, with the brokerage applying a 15x price-to-earnings ratio for the standalone business. The valuation methodology includes valuing listed subsidiaries at a 35% holding company discount, reflecting the company's diversified business structure and subsidiary operations. Geojit Investments recommends 'accumulating' the stock at current levels with a stop loss at ₹2,839 to manage downside risk. The latest price action shows the stock forming a strong bullish 'Marubozu' candle backed by a multi-month volume breakout, reflecting strong institutional participation. The monthly MACD has also delivered a positive signal crossover, often associated with sustained medium-term uptrends.
