Venus Pipes climbs after domestic broker initiates coverage

Venus Pipes & Tubes rose 3.56% to Rs 635.80 after a domestic brokerage reportedly initiated coverage on the stock with a 'buy' rating and a target price of Rs 764.

The brokerage reportedly said that Venus Pipes is in process of increasing capacity by 2.8x to 33.6ktpa as well as backward integrating by Q1FY24E, which will aid margin expansion.

The target price is 20.16% premium to the ruling market price of the stock.

Venus Pipes & Tubes is a pipes and tubes manufacturer with the sole focus on manufacturing of welded and seamless pipes in a single metal category, i.e., stainless steel (SS).

The company's net profit rose 33.77% to Rs 9.11 crore on a 40.14% jump in sales to Rs 113.60 crore in Q1 FY23 over Q1 FY22.

The stock was listed on the stock exchanges on 24 May 2022. The scrip was listed at Rs 335, representing a premium of 2.76% to the initial public offer (IPO) price of Rs 326.

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