Tube Investments of India Limited (TII) is a diversified engineering and manufacturing company under the Murugappa Group, with strong businesses in bicycles, metal-formed products, and engineering solutions. Known for brands like Hercules and BSA, TII has recently delivered exceptional profit growth despite modest sales expansion, backed by operational efficiency and margin improvement. This article provides a fact-based outlook on its share price target for each year from 2026 through 2030, based on verified financials and sector dynamics.
Tube Investments of India: Company Overview
- Incorporated: 1949; listed since 1985
- Core Business Segments:
- Bicycles (Hercules, BSA, Montra): Market leader in premium and MTB segments
- Metal Formed Products: Precision tubes, automotive components, and structural steel
- Engineering Solutions: Electric motors, gearboxes, and industrial systems
- Strategic Moves:
- Forayed into TMT bars and truck body building
- Exploring optic lens and vision systems for automotive OEMs
- Ownership: 44.05% held by Murugappa Group, with strong institutional backing (DII + FII = 43.27%)
Tube Investments of India: Key Financial Snapshot
| Metric | Value |
|---|---|
| Market Capitalization | ₹49,339.78 Cr |
| Current Share Price | ₹2,550 (as of Feb 2026) |
| P/E (TTM) | 36.35 |
| P/B (TTM) | 8.63 |
| Book Value (TTM) | ₹295.50 |
| EPS (TTM) | ₹70.15 |
| ROE | 28.36% |
| ROCE | 31.84% |
| Dividend Yield | 0.14% |
| Sales Growth (TTM) | 3.71% |
| Profit Growth (TTM) | 76.53% |
| Cash Reserves | ₹90.81 Cr |
| Debt | ₹100 Cr |
| Face Value | ₹1 |
TII Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹2,700 – ₹3,000 |
| 2027 | ₹2,900 – ₹3,300 |
| 2028 | ₹3,100 – ₹3,700 |
| 2029 | ₹3,300 – ₹4,100 |
| 2030 | ₹3,500 – ₹4,500 |
Targets assume sustained ROCE, export traction in bicycles, and gradual recovery in auto component demand—but are capped by low dividend yield and modest top-line growth.
Tube Investments Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹2,700 | ₹3,000 |
- P/E of 36x is reasonable given 28% ROE and 31% ROCE
- Strong FY2025 EBITDA margins support near-term momentum
- Risk: Sales growth remains weak at 3.7%—limits re-rating potential
Tube Investments Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹2,900 | ₹3,300 |
- Expected benefit from premium bicycle exports and EV component tie-ups
- Potential inclusion in auto ancillary ETFs could boost liquidity
- Dividend yield remains negligible (0.14%)—offers no income cushion
Tube Investments Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹3,100 | ₹3,700 |
- By 2028, the cumulative effect of TMT bar ramp-up and truck body orders should reflect in revenues
- ROCE (31.8%) justifies a premium valuation if sustained
- Execution risk: Competition in the bicycle segment is intensifying (Hero, TI Cycles)
Tube Investments Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹3,300 | ₹4,100 |
- Long-term tailwinds from infrastructure push (structural steel) and rural mobility (bicycles)
- Institutional ownership (43%) provides stability
- Strategic diversification reduces reliance on auto cycles
Tube Investments Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹3,500 | ₹4,500 |
- If TII sustains 30%+ ROCE and expands export share to 25%+, ₹4,300+ is achievable
- However, targets beyond ₹4,600 require a breakthrough in EV components—not currently visible
- Success hinges on brand strength and the Murugappa Group’s capital support
Tube Investments: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (Murugappa Group) | 44.05% |
| Foreign Institutions (FII) | 23.02% |
| Domestic Institutions (DII) | 20.25% |
| Public (Retail) | 12.67% |
| Others | 0% |
Tube Investments: Strengths vs Risks
Strengths
- High ROCE (31.8%) and ROE (28.4%)—among the best in engineering
- Diversified portfolio across consumer and industrial segments
- Strong brand equity in bicycles (Hercules, BSA)
- Low debt (₹100 Cr vs ₹91 Cr cash)—near net-debt neutral
Risks
- Modest sales growth (3.7%) limits top-line visibility
- Very low dividend yield (0.14%) offers no downside protection
- Cyclical exposure to the auto and construction sectors
- Intense competition in both bicycles and auto components
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Time Horizon | Long-term (5+ years) |
| Volatility | Moderate |
| Dividend/Income | Very low (0.14% yield) |
| Ideal Investor | Thematic investor betting on India’s manufacturing revival and rural consumption |
FAQs
A: A realistic range is ₹2,700 to ₹3,000, assuming stable margins and no major input cost spikes.
A: Credible estimates suggest ₹3,500 to ₹4,500 by 2030, contingent on ROCE sustainability and export growth.
A: Reliable forecasts beyond 2030 are not possible. Such long-term projections are speculative and not based on verifiable data.
A: The Murugappa Group holds 44.05%, with the rest held by institutions and public shareholders.
A: Yes, but minimally. It has a dividend yield of 0.14% and a payout ratio of ~5%.
A: The stock corrected due to weak sales growth (3.7%), profit-taking after the rally, and concerns over the rural demand slowdown.
A: No. It carries ₹100 crore in debt, though this is nearly offset by ₹90.81 crore in cash, making it almost net-debt-free.
Final Verdict
Tube Investments of India is a high-quality, diversified engineering play with exceptional returns on capital and a strong brand legacy. While its sales growth is muted, its operational efficiency and strategic diversification support long-term value creation. Our 2026–2030 price targets (₹2,700–₹4,500) reflect cautious optimism—rewarding quality but capping upside due to top-line constraints. Best suited for investors with a 5-year horizon who believe in India’s manufacturing and mobility story.
Sources
- Screener.in – Tube Investments of India Ltd (Consolidated Financials)
- Finology.in – Company Essentials
- BSE India – Shareholding Pattern (Q3 FY2026)
- TII Annual Report FY2025
- Investor Presentation – Q2 FY2026 Results
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
