Murugappa Group stock set for its first negative calendar year after demerger

Shares of Tube Investments of India Ltd., the Murugappa Group entity, are down nearly 30% so far in 2025. This will make it the first year that the stock has delivered negative returns, after it began trading with a different name in 2017.

Barring 2024, Tube Investments shares have delivered positive, double-digit returns, every other year starting 2018, which was the first full year of trade after the demerger.

Year	Annual Return
2018	32%
2019	35%
2020	66%
2021	119%
2022	58%
2023	28%
2024	1%
2025 (YTD)	-28%

Tube Investments earlier traded as TI Financial Holdings, having being incorporated as a subsidiary in 2008.

In 2017, the Murugappa Group executed a "name swap" as part of a demerger process, separating the manufacturing business from the financial services business. TI Financial then took over the assets of the manufacturing unit and was renamed Tube Investments.

The erstwhile listed entity, which had stakes in Cholamandalam Finance, was then renamed Cholamandalam Financial Holdings.

Tube Investments is now an engineering conglomerate, having started off as a traditional bicycle and tube manufacturer.

None of the five analysts who have coverage on Tube Investments have a "sell" rating on the stock. Four of them have a "buy" rating, while one has a "hold" rating. The consensus estimates of price targets implies a potential upside of 41.4% from current levels for the stock.

From its recent 52-week high of ₹3,693, the stock is down nearly 31%. Based on the current price, from the start of 2018, shares have delivered returns of nearly 10x to shareholders.