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Tube Investments strengthens on plan to expand its capacity

24 Aug 2016 Evaluate

Tube Investments of India is currently trading at Rs 523.40, up by 3.70 points or 0.71% from its previous closing of Rs. 519.70 on the BSE.

The scrip opened at Rs. 522.25 and has touched a high and low of Rs. 526.70 and Rs. 515.00 respectively. So far 103791 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 575.00 on 4-Aug-2016 and a 52 week low of Rs. 352.00 on 25-Feb-2016.

Last one week high and low of the scrip stood at Rs. 555.35 and Rs. 515.00 respectively. The current market cap of the company is Rs. 9743.31 crore.

The promoters holding in the company stood at 49.93%, while Institutions and Non-Institutions held 26.88% and 23.19% respectively.

Tube Investments is planning to expand its capacity for manufacturing of tubes under its engineering business, to meet its expectations to grow at 20-25% a year in this business. In this regard, the company will be investing around Rs 40-50 crore this year and the plans for a larger capex would be ready by the beginning of 2017, according to senior management officials.

Every year the company spends around Rs 70-75 crore of capex in this business and the company expects to spend another Rs 40-50 crore, for debottlenecking.

Tube Investments of India is the flagship company of the Murugappa Group with multiple businesses ranging from diversified auto-ancillary products, bicycle retailing to financial services and insurance.

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