Nuvama Reiterates ‘Buy’ on Venus Pipes, Sets Rs 2120 TP
ECONOMY & POLICY

Nuvama Reiterates ‘Buy’ on Venus Pipes, Sets Rs 2120 TP

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

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

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