The shares of the manufacturer and exporter of stainless steel pipes gained up to 9 percent after the company announced its capex plan of Rs 175 crore in two phases and announced fundraising of up to Rs 71.40 crore.
With a market capitalization of Rs 3,713.38 crore, the shares of Venus Pipes & Tubes Ltd were trading at Rs 1,829.60 per share, increasing around 5.30 percent as compared to the previous closing price of Rs 1,739.15 apiece.
According to the company filing, Venus Pipes & Tubes Ltd announced its capex plan of Rs 175 crore in two growth phases. First phase will be a capacity expansion for setting up value-added Fittings & Welded worth Rs 115 crore which will be completed by March 2025.
Furthermore, the second phase will be for capacity expansion for setting up of value-added Fittings and welded / Seamless – Pipes / Tubes worth Rs 60 crore which will be completed by December 2025.
Additionally, the Board of Directors of the company has approved fundraising up to Rs 71.40 crore through Fully Convertible Warrants.
Looking at the company’s financials, Venus Pipes & Tubes Ltd’s sales increased by 52% from Rs 136 crore in Q3FY23 to Rs 207 crore in Q3FY24. During the same period, net profit increased by 109% from Rs 11 crore to Rs 23 crore.
It has delivered returns of 19.99 percent in the last six months and a multi-bagger return of 153.89 percent in a year. A shareholder’s investment of Rs. 1 Lakh in the company would be worth Rs. 2.53 Lakh in a year.
The company’s revenues for Q3FY24 from Stainless steel seamless and Welded pipes witnessed a growth of 89% and 39% Y-o-Y respectively and volume for seamless pipes witnessed a growth of more than 100% and welded pipes witnessed a growth of more than 50% for Q3FY24 compared to the same period last year
Venus Pipes and Tubes Limited manufactures and exports stainless steel pipes and tubes. The firm manufactures stainless steel tube products in two major categories: seamless tubes/pipes and welded tubes/pipes.
Written by:- Abhishek Singh
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