TII’s market cap of about Rs.81000 crore is almost equal to the the value of its stake in two of its listed subsidiaries, CG Power (58% stake) and Shanti Gears (70% stake).
On standalone basis, its PAT was Rs.735 crore in FY24, which grew at a CAGR of 24% in last 5 years.
Its EV subsidiary TII Clean Mobility has trucks, 3 wheeler and EV component business and have plans to launch LCVs and Tractors, apart from ramping up components business. TII clean mobility has raised Rs.3000 crore through equity and CCPS from reputed funds.
Other key businesses, which are in early stage, include medical devices and CDMO.
One may argue that there should be significant holding company discount assigned to the listed subsidiaries and current market cap might also be indicating the same.
However, in my personal view, extent/existence of holdco discount in future may depend upon extent of success in new businesses and also if it is be able to achieve its aspiration of becoming a manufacturing giant.
Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be positively biased. I am not suggesting any investment action. The information provided above is for education purpose only.
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