Shares of Venus Pipes & Tubes Ltd. have doubled the investors’ money in less than a year of their debut in the stock market. The company’s IPO was indeed one of the blockbusters in 2022.
Venus Pipes made its debut in the stock market in May 2022. Its shares got off to a slow start at the time, but later jumped more than 100 percent to double investors’ money.
The company’s shares have registered a gain of 104 per cent from the issue price of Rs 326 to Rs 724 on the NSE as of January 3’s close.
Domestic brokerage Share India Securities Ltd has given buy rating on Venus Pipes with a price target of Rs 850. It added that the company presented strong financials with a revenue growth of 10.52 per cent QoQ and 41 per cent YoY in Q2 FY2023. It added that during FY19-22, the company witnessed healthy growth with a sales CAGR of 48 per cent and EBITDA CAGR of 61 per cent.
According to Ravi Singh, Vice President and Head of Research, Share India, Venus Pipes is looking attractive on daily and weekly chart patterns. It is experiencing an increase in trading volume which is an indication that a fresh rally is on the cards.
Another brokerage firm Nuwama Institutional Equities has also given buy rating for the target of Rs 862. It added that Venus Pipes has captured a market share of 4 per cent in stainless steel pipes and tubes. The company now aims to become the third largest in terms of market share (10 per cent) by FY24E.
Shares of Venus Pipes have given multi-bagger returns of 112% in last 6 months. Its 52-week range is Rs 774.85 to Rs 321.10.