Multibagger stock: Brokerage firm Nuvama Institutional Equities has recommended multibagger stock Venus Pipes for long-term. The brokerage firm has given the target price of ₹2,260 apiece, sees over 80 per cent upside potential.
“Given a strong order book, capacity additions and an increase in the share of value-added products, we maintain ‘BUY’ with a TP of INR2,260 based on 25x Q1FY28E EPS,” the brokerage firm said in a note.
The brokerage firm said that Venus Pipes upgraded its FY26 revenue growth guidance to 25 per cent from 20 per cent, reflecting increased confidence in execution.
“The revision is backed by a healthy INR5.6bn order book, including an INR1.9bn order from a leading Indian power equipment manufacturer, and strong export momentum with shipments up ~70% YoY in Q1FY26. With blended capacity utilisation expected to be near 80% this year and new seamless and condenser tube capacities starting to contribute from H2FY26, the company has clear visibility, which gives it the confidence to upgrade volume growth guidance,” the firm added.
The scrip has given multibagger returns to its long-term investors by surging over 300 per cent in five years.
Venus Pipes Q1 results 2025
The Gujarat-based stainless steel pipes manufacturer reported Q1 revenue of ₹276.4 crore, marking a 15.1 per cent increase from ₹240.1 crore in the same period last year. However, net profit declined by 9.8 per cent to ₹24.8 crore from ₹27.5 crore in Q1FY25, according to Nuvama.
Despite the revenue growth, EBITDA dropped 6.5 per cent to ₹44.9 crore, leading to a margin contraction to 16.2 per cent from 20% in Q1FY25. Higher staff costs, increased expenses, and a reduced contribution from welded pipes weighed on profitability.
PAT fell 10 per cent year-on-year, impacted by higher depreciation and interest expenses. Nuvama highlighted that management anticipates margins to stabilize between 16–18 per cent in the upcoming quarters, driven by an improved order book and a stronger focus on value-added products.
Venus Pipes and Tubes, incorporated in 2015, is a manufacturer and exporter of SS pipes and tubes. It has a total production capacity of 12kt per year, which it produces at its facility in Dhaneti (Kutch), Gujarat. The plant lies approximately 55km and 75km from the Kandla and Mundra ports, respectively.
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