Tube Investments hits new high

Tube Investments, which had closed yesterday at Rs.3220.10, opened slightly lower today at Rs.3200 but from there jumped up to hit a new 52-week high at Rs.3394.

A report put out by a brokerage house, showing its positive outlook pushed the stock to a new high today. Motilal Oswal Financial Services double-digit out a report saying that the company is projected to post a double-digit growth over the next 2-3 years, driven mainly by recovery in the two-wheeler segment, increased exports and expand its large-diameter tubes.

The brokerage firm said that the company offers a robust growth story, driven by reasonable growth in the core business and by leveraging strong cash flows of the core business (TI-1) to systematically incubate future growth platforms (TI-2) and opportunistic acquisitions of stressed assets (TI-3) at attractive prices.