 "Venus Pipes rallies 7%, hits record high as Ashish Kacholia buys 2% stake")
Shares of Venus Pipes & Tubes rallied 7 per cent to hit a record high of Rs 837.55 in Wednesday’s intra-day trade, after investor Ashish Kacholia acquired 2 per cent stake in the company via open market on Tuesday.
On April 11, 2023, Ashish Rameshchandra Kacholia bought 4 lakh equity shares, which represented 1.98 per cent stake of Venus Pipes at Rs 750 per share via block deal, data shows.
Data suggested that Nuvama Wealth Finance Limited sold 1.3 lakh equity shares at Rs 750.02 per share. The names of the other sellers were not ascertained immediately.
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Venus Pipes & Tubes is a manufacturer and exporter of stainless steel pipes and tubes. The company manufactures stainless steel tube products in two broad categories - seamless tubes/pipes and welded tubes/pipes under which five categories of products are manufactured namely, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes.
For the first nine months (April to December) of the financial year 2022-23 (9MFY23), Venus Pipes had reported 35.9 per cent year-on-year (YoY) jump in revenue from operations at Rs 376.1 crore, supported by increased capacity, successful ramp up in operations, and higher demand for its products.
The company’s Ebitda (earnings before interest, taxes, depreciation, and amortization), meanwhile, grew 33.8 per cent YoY at Rs 47.5 crore. Profit after tax, too, rose 30.4 per cent YoY at Rs 30.8 crore.
During the quarter, the company had upgraded the tube mill and in turn will further increase the efficiency of tube mills. This focus on productivity & quality has led to direct domestic sales (to brands) growing 72 per cent YoY in Q3FY23 and 107 per cent YoY in 9MFY23.
The management said exports share for the March quarter was suppressed due inflationary impact, and geopolitical tensions in Europe. This is a short-term impact, and the management estimates this to rebound in the coming quarters of FY24.
"This quarter saw policy support for the industry, by the government. While imports on welded pipes already had anti-dumping duty, the duty on seamless pipes announced recently is a positive move and is likely to boost the domestic utilisation of players. In addition to import substitution, this will also aid us in capturing the market share of unorganized players," the management said.
