Why is Tamilnadu Steel Tubes Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.52%
- Poor long term growth as Net Sales has grown by an annual rate of 11.67% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.78 times
2
With ROCE of 3.7, it has a Expensive valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 117.11%, its profits have fallen by -27%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is T N Steel Tubes for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
T N Steel Tubes
117.11%
1.98
59.18%
Sensex
7.97%
0.69
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
11.67%
EBIT Growth (5y)
21.87%
EBIT to Interest (avg)
0.30
Debt to EBITDA (avg)
4.90
Net Debt to Equity (avg)
0.76
Sales to Capital Employed (avg)
4.35
Tax Ratio
60.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.38%
ROCE (avg)
1.51%
ROE (avg)
2.03%
Valuation Key Factors 
Factor
Value
P/E Ratio
302
Industry P/E
9
Price to Book Value
2.23
EV to EBIT
28.33
EV to EBITDA
24.42
EV to Capital Employed
1.70
EV to Sales
0.34
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.71%
ROE (Latest)
0.74%
Loading Valuation Snapshot...
7What is working for the Company
NET SALES(Latest six months)
At Rs 47.23 cr has Grown at 26.28%
PBDIT(Q)
Highest at Rs 0.41 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 1.85%
PBT LESS OI(Q)
Highest at Rs 0.12 cr.
PAT(Q)
Highest at Rs 0.05 cr.
EPS(Q)
Highest at Rs 0.10
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for T N Steel Tubes
Net Sales - Latest six months
At Rs 47.23 cr has Grown at 26.28%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 0.41 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 1.85%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 0.12 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 0.05 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.10
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






