Venus Pipes Shares Jump Over 8% On 'Buy' Rating From DAM Capital

Shares of Venus Pipes and Tubes Pvt. rose on Friday after DAM Capital Advisors Ltd. gave it a 'buy' rating while initiating coverage.

The brokerage set a target price of Rs 1,810 on the stock, with an upside of 33%.

Government plans to pull up private sector capex and opportunities in the global market led to the move. Infrastructure, oil and gas transmission and water supply will drive steel pipe demand, DAM Capital said.

Venus Pipes is building a niche for itself in the high-margin stainless steel pipes space. Capacity augmentation will drive volume growth in near-to-medium term, the brokerage said. It expects the company's market share gap to steadily close in medium term.

Its recent expansion row will help increase the stainless-steel pipes capacity to 40KMT by the end of FY24E. This is close to the market leader, according to DAM Capital. The company also "aims to focus on the ramping up of new capacities by entering newer user industries, while moving up the value chain", it said.

Shares of the company rose as much as 8.12%, the most since Nov. 16, before paring gains to trade 5.26% higher at 11:23 a.m. This compares to a 0.22% decline in the NSE Nifty 50.

The stock has risen 98.85% year-to-date. Total traded volume so far in the day stood at 24 times its 30-day average. The relative strength index was at 60.

All six analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 101.6%.