Not Tata Steel Or JSW Steel, But This Metal Stock To Fetch 14% Gains In 1-Month; Fundraise, Q4, Dividend Ahead

Metal stocks are trending owing to a steady spike in their prices due to strong domestic demand. Accordingly, metal stocks have emerged among the top bulls of 2024 despite market volatility. Domestic steel players are in a favourable spot, making them attractive bets on BSE and NSE. However, Axis Securities has recommended buying one such steel stock.

It is not a giant like Tata Steel and JSW Steel, but Murugappa Group-backed Tube Investments that is expected to fetch gains as high as 14% in 30 days.

Axis Securities is the latest to suggest BUY. The brokerage advises for entry price in Tube Investment to range from Rs 3,820 to Rs 3,900 apiece. While the target is set at Rs 4,641 with a stop loss of Rs 3,613 apiece.

As per the brokerage, in the last 1 year Tube Investments of India Ltd, has beaten the Nifty 200 by 17.48% (CAGR difference). However, the volatility of Tube Investments of India Ltd is Higher than the Nifty 200 volatility by 1.8%. For 7 out of the last 12 Months, i.e 58% of the time it has beaten Index returns

Among stock trivia, the brokerage highlighted that Tube Investments of India Ltd is trading very close to its All-time High, while mutual funds shareholding in Tube Investments has decreased by -3.52% in the past 1 Year.

In the case of fundamentals, as per the brokerage, 4 out of the last 5 years, the company's PAT Growth has been high, while 5 out of the last 5 years, the ROE has been high. Also, 5 out of the last 5 years, Debt - The equity ratio has been low.

On BSE, Tube Investments share price is currently at Rs 4089.50 apiece with a market cap of Rs 79,091.84 crore. In the trading week that ended on May 10th, Tube Investments was one of the star performers with gains of over 6.2%. YTD, the stock is up by 14%. And in a year, the stock rallied by 48.24%.

Tube Investments of India Ltd. (TII ) is a leading engineering company and part of the Murugappa Group. The company is engaged in manufacturing precision steel tubes and strips, car doorframes, automotive and industrial chains and bicycles.

Going ahead, the key trigger in Tube Investments will be its Q4 results, fundraising plan and final dividend for FY24. These will be announced on Monday, May 13, 2024.

As per the regulatory filing, Tube Investments said, "We inform that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 13th May 2024 inter alia for:

- approving the Audited Standalone and Consolidated Financial Results for the Financial Year ended 31st March 2024; &

- considering the recommendation of the final dividend, if any for the financial year ending
31st March 2024.

- approving long-term borrowings inter alia through issue of non-convertible debentures during FY 2024-25, in one or more tranches."

In Q3FY24, the company's consolidated revenue for the quarter was Rs.4,197 Cr as against Rs. 3,643 Cr in the corresponding quarter of the previous year. The profit (before share of profit of an Associate/Joint Venture, Exceptional Items and Tax) for the quarter was at Rs. 390 Cr as against Rs. 418 Cr in the corresponding quarter of the previous year.

Earlier, Tube Investments paid an interim dividend of 200% amounting to Rs 2 per share for FY24. In FY23, the company delivered of 350% worth Rs 3.5 per share.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.