Ace investor Ashish Kacholia sent the share price of Venus Pipes & Tubes Ltd to a record high after he bought a stake in the company. The multibagger stock hit an all-time high of ₹ 867.55 apiece on the Bombay Stock Exchange (BSE) after gaining 10.46% intraday.
The street queued to buy its shares after Ashish Kacholia picked 4 lakh equity shares or nearly a 2 percent stake of Venus Pipes and Tubes, according to the bulk deals data available on the BSE. He bought the shares at ₹ 750.00 apiece and did not have any holdings in the company at the end of the December quarter of 2022.
Venus Pipes got listed on the bourses in May last year and it gave stellar returns to its investors. The shares were offered at a price of ₹ 326.00 apiece and closed at ₹ 835.20 apiece on Wednesday, indicating that the stock has given multibagger returns of 156.20%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 2.56 lakhs today!
Often called the “wiz-kid” of stock markets, Ashish Kacholia is known for his absence from media cycles. However, he likes his portfolio to speak for itself. Kacholia has a portfolio of nearly 40 stocks and a net worth of over ₹ 1821.8 crores as of Wednesday.
Venus Pipes and Tubes manufactures and exports stainless steel pipes and tubes. In addition, the company manufactures stainless steel products in two broad categories: seamless tubes/pipes and welded tubes/pipes.
With a market capitalization of ₹ 1,586 crores, Venus Pipes is a small-cap company. It has an excellent return on equity of 37.60% and an ideal debt-to-equity ratio of 0.18. Its shares were trading at a price-to-earnings ratio of 39.64 which is substantially higher than the industry P/E of 12.23 indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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