Zero Returns! This Multibagger Murugappa Group Stock Delivers Almost Nothing in 19 Months – Here’s Why

The stock has delivered almost no return (almost zero return) since the end of October 2023.

Murugappa Group, a 124-year-old conglomerate with a presence across India and globally, has a diversified portfolio across agriculture, engineering, financial services and more. The group is well regarded among investors—particularly because its listed companies have consistently created wealth.

Over the last five years, all eight Murugappa Group companies listed on the NSE have delivered multibagger returns i.e. returns of more than 100 per cent.

Performance of Murugappa Group Listed Companies (5-Year Returns):

CG Power and Industrial Solutions Ltd, a subsidiary of Tube Investments of India (which holds a 58 per cent stake), stands out as a spectacular 15-bagger—meaning an investment has grown 15 times over.

Murugappa Group’s emphasis on strong governance practices, implemented across its companies including CG Power, has played a key role in these outstanding returns. However, this article focuses not on CG Power’s turnaround story, but on Tube Investments of India (TIINDIA) itself.

Despite delivering a solid 283 per cent return over five years, TIINDIA now finds itself in a challenging position.

Tube Investments Share Price: Nearly Zero Return Over 19.5 Months

The share price of TIINDIA has corrected by 36% from its all-time high of Rs 4,810.80, recorded in October last year. More notably, the stock has delivered almost no return (almost zero return) since the end of October 2023.

As of the week ending October 27, 2023, the stock closed at Rs 3,063.40. The latest closing price is Rs 3,067, translating to nearly flat performance over a 19.5-month period.

In short, the stock made a new high in October last year, but since then, its price has fallen, resulting in flat returns.

What Triggered the Decline of Tube Investments of India?

The stock fell over 4% after the company announced its March 2025 quarter results. On a standalone basis, the company reported a revenue decline for the quarter ending March 31, 2025, with revenue at Rs 1,957 crore compared to Rs 1,962 crore in the same quarter of the previous year. For the full-year, standalone revenue stood at Rs 7,893 crore in FY25, up from Rs 7,611 crore in the previous year, reflecting a low single-digit YoY growth of 3.7 per cent.

TIINDIA operates across three main segments at the standalone level: engineering, metal formed products, and mobility.

Engineering Segment: The Key Driver, but Slowing

This division, which produces cold-drawn welded (CDW) tubes, remains the largest contributor to the company's standalone revenue—Rs 5,029 crore out of the total Rs 7,893 crore in FY25—accounting for 64 per cent of the overall standalone revenue.

While revenue from this segment grew by just 2 per cent over the previous year, profit before tax remained flat at Rs 617 crore as compared to FY24. The tepid growth and stagnant profitability were attributed to capacity constraints. Management noted some short-term uncertainty in the export markets for the engineering division but suggested it is likely to be temporary.

Metal Formed Products: Dragged by Auto Sector Weakness and Railway Lull

This division produces cold roll-formed sections and components, including drive chains, automobile kits, railway coach parts, and fine blanking.

In FY25, this segment showed muted growth, with revenue rising 3 per cent to Rs 1,564 crore, impacted by weak demand in the auto sector. The railway segment, in particular, has been a drag on performance, with no meaningful contribution over the past six to seven quarters.

As a result, profit before tax dropped 14 per cent YoY to Rs 161 crore, and margins contracted. 

Mobility Segment
The mobility segment reported revenue of Rs 671 crore in FY25, a marginal increase from Rs 664 crore in the previous year.

The above factors appear to have contributed to the stock’s decline from its highs and the nearly negligible return over the past 19.5 months. 

Disclaimer: The article is for informational purposes only and not investment advice.