Venus Pipes and Tubes Ltd. witnessed a surge in its stock price by nearly 5% following Investec’s initiation of coverage with a ‘buy’ rating and a target price of ₹1,665. The brokerage highlighted the company’s strong growth trajectory and its strategic backward integration as key factors contributing to its improved profitability. Venus Pipes, known for its expertise in titanium tubes, hygienic tubes, and fittings, is considered one of the fastest-growing players in its sector.
Investec expects the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) to grow at a compound annual growth rate (CAGR) of 21% over the fiscal years 2024-2027. The brokerage also noted that the incremental expansion in the company’s operations provides an attractive return on capital employed (ROCE) profile.
Venus Pipes’ expansion strategy and its ability to maintain cost leadership through backward integration were key drivers highlighted in Investec’s report, reinforcing positive sentiment among investors.
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