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Hidden Gem - Venus Pipes and Tubes (CMP: ₹ 1,625, Mcap: ₹ 3,370 crore; Rating: BUY; Target Price: ₹ 2,200; Upside Potential: 35%)

ICICIdirect Research 04 Sep 2026 DISCLAIMER

Venus Pipes and Tubes (Venus), is engaged in manufacturing of stainless-steel pipes and tubes with total installed capacity pegged at ~48,000 metric tonnes per annum (MTPA), located in Gujarat. This includes a capacity of 20,400 tonnes of Seamless stainless-steel pipes and tubes and 27,600 tonnes of Welded stainless-steel pipes and tubes.
For FY26, Domestic sales contributed to 66% of the revenue whereas Export were at 34%. It realises healthy 16-17% EBITDA margins on its product profile.
Stainless steel pipes and tubes, known for their corrosion resistance and lightweight properties, are gaining traction across core infrastructure applications (power, engineering, chemicals, oil & gas). Venus has capitalised on this opportunity by expanding its capacity ~4x over the past five years, from 12,000 tonnes in FY23 to current 48,000 tonne.
Notably, seamless pipes and tubes capacity has increased ~6x, strengthening its presence in higher-margin segment and increasing its market share to ~10% in FY26 (vs sub ~5% in FY20).
Venus is also expanding its end-market exposure towards high growth and emerging sectors such as data centres, semiconductors, and nuclear power, thereby reducing its dependence on traditional cyclical industries. The strategy is already gaining traction, with Venus securing a Letter of Intent worth ₹185 crore from a leading data-centre customer for the supply of stainless-steel spools for cooling applications, to be executed starting Dec’26.
On the guidance front, the company has maintained its FY27 guidance of topline growth of ~20% with volume growth of above 15%. While it is targeting at least 17% EBITDA margin for FY27 and aims to reach ~18% over the next two years, amidst its long-term target of ~20% (to be realised in next 3-4 years) vs. ~16% currently.
We like Venus Pipes and Tubes, supported by healthy double-digit volume-led earnings growth over the medium term, along with increasing presence in high-growth segments such as Data Centre, along with a growing portfolio of niche value-added product offerings, a controlled B/S (0.4x D:E) and return ratios >15%.
We assign BUY rating on Venus with a target price of ₹2,200, i.e., 30x PE on FY28E.

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