Going forward, with TII being the sole credible bicycle player in the listed space, its strong focus on return ratios matrix (RoE, RoCE at ~18%) and cash generation ability (CFO yield at ~10%, FCF yield at ~6%), lead us to build a positive stance on the company. Consequently, we assign BUY rating on TII with a target price of | 425, valuing it at 26x P/E on FY20P EPS of | 16.3/share. Key risk to our call is more than expected delay in demand...

Tube Investments of India Limited (TIIL) is engaged in manufacturing of bicycles, fitness equipment, electric scooters in the cycle segment; tubes, strips and tubular components in the engineering segment; car doorframes & channels, automotive and industrial gears in the metal formed products segment. TIIL offers two well established brands of bicycles- BSA' & Hercules' and indigenously developed...