Shares of Murugappa Group’s engineering company Tube Investments of India Ltd tumbled over 6 percent on Friday after a large trade was executed in the open market.

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Around 20 lakh shares of Tube Investments, translating into 1 percent of the company’s equity, changed hands at Rs 2,920 apiece on BSE. This takes the total deal price to around Rs 586 crore.

There was no immediate information available on the buyers and sellers in the deal.

Notably, the deal price was 5.8 percent lower than the stock’s previous close of Rs 3,099.90 on BSE on Thursday. Consequently, Tube Investments shares corrected by as much as 6.5 percent after the block deal to hit an intra-day low of Rs 2,900 on BSE on Friday.

In a recent research report dated August 4, 2023, Motilal Oswal had issued a bullish view on Tube Investments, recommending a ‘buy’ rating on the stock with a target price of Rs 3,655 per share.

The report was released after the company announced its earnings for the quarter ended June 2023 (Q1 FY24).

Motilal Oswal said that the company’s results were negatively impacted by low revenues across key businesses. However, the underlying recovery in the auto, especially two-wheeler volumes, and exports are expected to drive revenue and margins recovery over the next few quarters to over 13 percent by Q4 FY24.

For Q1 FY24, Tube Investments said that its stand-alone revenue dropped to Rs 1,780 crore compared with Rs 1,957 crore in the same quarter last year.

Standalone profit after tax (PAT) stood at Rs 148 crore during the quarter compared with Rs 134 crore in the year-ago period.

The company’s management said that Tube Investments is expected to register a compounded annual growth rate (CAGR) of 15 percent over the next few years. This would be largely driven by engineering and metal formed division.