Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
PT Tira Austenite Tbk is an Indonesian enterprise primarily focused on the commerce and delivery of a wide array of technical merchandise. The company operates through three distinct business units: the distribution and trade of technical products, welding and molding activities, and the supply of industrial gases. Within its technical product offerings, the company provides various steel products. This includes specialized machinery steel utilized for manufacturing parts like shafts, gears, and other machine components, alongside stainless and tool steels. They also offer wear-resistant steel products designed for rigorous applications such as heavy equipment, liner plates, and crushers. The industrial gas division presents an extensive range of gases. This covers medical gases, including anaerobic atmosphere mixtures, blood gas mixtures, breathing air, helium, and lung diffusion gas mixtures. Additionally, they supply specialty gases like analytical instrumentation mixtures, chemical process gases, emission calibration gases, environmental compliance mixtures, high-purity gas products, hydrocarbon calibration standards, laser gas mixtures, rare gases, and ultra-high purity gas products. Standard industrial gases such as argon, carbon dioxide, nitrogen, oxygen, and hydrogen are also available, along with fuel gases like acetylene, LPG, and propane. The company further provides related gas solutions, including high-pressure cylinder gases, liquid cylinders for gas or liquid service, and shielding gases. Beyond distribution, PT Tira Austenite is involved in manufacturing, producing ALPHABRONZE-branded bronze casting items, MG and STELEC brand welding electrodes, and medical equipment. They also engage in steel trading. The company, established in 1971, maintains its principal office in East Jakarta, Indonesia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, neutral on EV/EBITDA