Stock Analysis: Products from Venus Pipes are widely used in industries including oil & gas, engineering, fertilisers, pharmaceuticals, power, food processing, and chemicals.
According to stockbroker Antique Stock Broking, it would soon reach a capacity of 33.6 ktpa after integrating a 9.6 ktpa backward line (to create hollow pipes from stainless steel round bars).
The only manufacturing facility for Venus is situated at Dhaneti, Kutch, Gujarat, and is within a short distance from the ports of Kandla (55 km) and Mundra (75 km), with a combined production capacity of 12 ktpa (3.6 ktpa for seamless pipes and 8.4 ktpa for welded pipes).
“We see rising exports and domestic sales aiding Venus’ top-line growth, while backward integration initiatives are expected to support higher margins. We like the growth prospects, comfortable leverage levels (FY25E net debt to EBITDA expected to improve to 0.5x level) and initiate coverage on Venus with BUY rating and target price of ₹1,037,” the brokerage said.
In May of last year, Venus Pipes shares made their debut on the stock market. Since then, the stock has given investors a multibagger return, rising more than 119% from its initial public offering (IPO) issue price of $326 per share to its current level of $729, which suggests a potential gain of more than 40% from the current price. The stock is currently trading close to the all-time high of $774 that it reached in November 2022.
The Gujarat-based business is an expanding producer and exporter of stainless steel pipes and tubes in India. The business provides its products under the Venus brand for use in a variety of industries, including engineering, fertilisers, pharmaceuticals, power, food processing, paper, and oil and gas.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of sharebaz.