Shares of this multibagger Ashish Kacholia stock fell approximately 1 percent after BNP Paribas likely sold a stake in the company. In the past month, the company’s stock has fallen around 20 percent.
With a market capitalization of Rs 2,570.60 crores, the stocks of Venus Pipes and Tubes Limited opened their trading hour on Wednesday at Rs 1,275.05 and currently trades at Rs 1,266.55, slipping around 1 percent as compared to the previous close of Rs 1,275.15 apiece.
These bearish movements are witnessed after multiple reports covering the sale of a stake from “BNP Paribas Arbitrage” in Venus Pipes and Tubes Limited.
The Institutional Banking services provider likely sold around 2.75 lakh shares at Rs 1,234.21 per equity share. As per the June 2023, quarter, BNP Paribas Arbitrage holds 6.50 lakh shares in the company which equates to a 3.20 percent stake.
Keeping a purview of a year, the company’s stock has proven to deliver multibagger returns of 105 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh in the stock a year ago, it would have converted to Rs 2.05 lakhs.
Mr. Ashish Kacholia, one of the well-known ace investors based in India, has invested in the company’s stocks. He took an entry in June 2023 and, as per the latest holding data, holds 4 lakh equity shares equating to a 1.97 percent stake in the company.
During the recent financial years, the company has seen an increase in its basic business parameters such as the operating revenues and after-tax profits with the former increasing from Rs 386.95 crores during FY21-22 to Rs 552.4 crores during FY22-23, and, the latter, during the same time period, moving up from Rs 31.67 crores to Rs 44.21 crores.
In addition, the net profit margins of the company have remained stable at levels of 8 percent. The company’s debt-to-equity ratio, one of the well-tracked leverage metrics, has consistently reduced during the past few years with the most recent reduction from 0.5 times during FY21-22 to 0.28 times during FY22-23.
The latest shareholding pattern data, according to the June 2023 quarter, portrays the company’s Promoters holding a 48.2 percent stake, and the Foreign Institutional Investors (FIIs), increasing their stake during the recent quarters, currently hold a 6.49 percent stake in the company.
Incorporated in 2015, Venus Pipes and Tubes Limited is engaged in the business of manufacturing as well as selling stainless-steel pipes and tubes within and outside India. Some of the products offered by the company comprise hydraulic and instrumentation tubes, welded pipes, box pipes, and many more under the ‘Venus’ brand name.
Written by Amit Madnani
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