Muruguppa Group - TII 42% upside buy

Tube Investment India - 42%


Diversified company catering to auto/eng/infra/power/
consumption
• Market leader in most of its businesses
- TI and Hero 75% of market, 50% market share in ‘specials’
- 50% market share for precision tubes
- 64% market share for car doorframes
• New products – super-critical boiler tubes, e-scooters
• Strong earnings growth - 23% EPS CAGR over FY11-13E.
• Adjusted for investments ROCE for FY12E attractive at 23%,
Bicycles +70% ROCE
• Holdings in Cholamandalam (59%) and Mitsui JV in the
general insurance business (74%)
• Market Cap US$0.63bn, ADV <="" p="" shareholding="">
Promoter 51%
• Valuation: SOTP, 6-7x EV/EBITDA and 50% holding company
discount

Report UBS - Top Buy