Buy Venus Pipes and Tubes; target of Rs 1700: Anand Rathi

Anand Rathi is bullish on Venus Pipes and Tubes has recommended buy rating on the stock with a target price of Rs 1700 in its research report dated March 13, 2025.

Broker Research

March 17, 2025 / 14:22 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Anand Rathi's research report on Venus Pipes and Tubes

Over the last five years, Venus Pipes and Tubes enhanced its cumulative capacity by 4.1x to 38,400 tonnes. Under the next leg of expansion, it is enhancing its presence in high-grade stainless steel/titanium-welded tubes, fittings and seamless pipes/tubes, thus taking the cumulative capacity to 46,800 tonnes. The company’s increased installed capacity resulted in market-share gain (from 3.6% to 6.2% over FY20-24) and helped outpace peers, thanks to its ~28% volume CAGR over FY20-24. Further, strengthening seamless pipes’ backward integration by producing mother hollow pipes (~14,400 tonnes) de-risked merchant procurement and aided profitability; the EBITDA margin rose ~570bps over FY23-24.

Outlook

We expect 24%/26%/28% revenue/EBITDA/APAT CAGRs over FY24-27 on the company’s expanded capacity, enhanced product portfolio, improved backward integration, increased domestic market share, higher exports and imposition of ADD/CVD on RM imports. We, thus, retain a Buy rating, with a TP of Rs1,700/share.

For all recommendations report, click here