Nuvama Institutional Equities has reiterated its ‘Buy’ rating on Venus Pipes & Tubes, raising the target price to Rs 2.12 billion from Rs two billion. This follows in-line Q4 FY25 results, with revenue up 15 per cent year-on-year, while EBITDA and profit after tax declined eight per cent and seven per cent respectively.

A key highlight was the surge in export contribution to 44 per cent in Q4 FY25, compared to 12 per cent a year earlier. However, domestic share dropped to 56 per cent amid weak demand. Total FY25 volumes grew 18 per cent to 26,000 tonnes, though margins slipped 400 basis points year-on-year due to competitive pressure and a slowdown in welded pipe exports.

Management has guided for over 20 per cent volume growth and 16–18 per cent operating margins. Backed by a strong order book of Rs 5.74 billion and rising demand from sectors like power, Venus received a Rs 1.9 billion order for stainless-steel seamless boiler tubes from a thermal power project.

With valuation rolled forward to FY27 earnings at 25 times projected EPS, Nuvama believes Venus is positioned for robust growth.

Source:Company update via Nuvama