Venus Pipes and Tubes Limited

Basic Materials — Steel · NSE

₹1,896.00+₹10.70 (+0.57%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Venus Pipes and Tubes Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Venus Pipes and Tubes Limited manufactures and sells stainless-steel pipes and tubes worldwide.

IndustrySteel

SectorBasic Materials

Employees959

Annual revenue₹1,115 Cr

How does it make money?

Turns over ₹1,115 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 959 employees supports ₹1.16 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.8%

Net margin9.1%

Revenue / employee₹1.16 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.3% against a peer median of 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE22.4%

ROE15.3%

Peer median ROE10.8%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 19.8% and earnings to grow about 34.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.8%

Est. earnings growth+34.5%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +104% while net margin moved +13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+104%

Margin effect+13%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 38.2x already prices in growth
• P/E is close to its own historical median of 38.1x
✗ P/B of 5.84x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

38.2x

3Y Median

38.1x

40 monthly readings · mean 46.2x · range 19.7x–97.4x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 38.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 110% above the peer median of 18.2x.

vs. its own history

Fair

38.1x median over 40 months · +0%

vs. sector peers

Expensive

18.2x median of 4 peers · +110%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.2x

P/B

5.84x

EV/EBITDA

21.2x

PEG

1.19

Dividend Yield

0.05%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 12.8% to 17.8% over 3 years.
Return on capital is rising
ROCE has improved from 19.5% to 22.4%.
High return on capital employed
ROCE of 22.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 217% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 269% against revenue growth of 104% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 132% against revenue growth of 104% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 217% over 3 years, from ₹90 Cr to ₹287 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 269% against revenue up 104% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 132% against revenue up 104% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.8% to 17.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 269% against revenue up 104%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 110% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 20% a year✓ 26.8% CAGR
Latest reported year was 16.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹76 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹3,928 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.84x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹49.61

Profitable

Profitable on a per-share basis

ROE

15.3%

Strong

Strong capital efficiency

ROCE

22.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

16.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

5.5%

Modest

Slow profit growth

Dividend Yield

0.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹76 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,896

P/E (Forward)

22.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.8%

Average

Average margins

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.04

Defensive

Steadier than the market

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2138.9 / 1869.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹546 Cr	₹785 Cr	₹919 Cr	₹1,115 Cr	+26.8%
EBITDA	₹70 Cr	₹148 Cr	₹175 Cr	₹199 Cr	+41.7%
EBITDA Margin	12.8%	18.8%	19.1%	17.8%	—
PAT (Net Profit)	₹44 Cr	₹86 Cr	₹93 Cr	₹102 Cr	+32.1%
EPS	₹22.6	₹42.36	₹45.45	₹49.51	+29.9%
ROE	13.7%	21.2%	17.5%	15.3%	—
ROCE	19.5%	30.3%	27.3%	22.4%	—
Total Debt	₹90 Cr	₹149 Cr	₹192 Cr	₹287 Cr	+47.0%
Free Cash Flow	-₹153 Cr	-₹55 Cr	-₹40 Cr	-₹76 Cr	—

🟢 Revenue has grown at 26.8% a year over 3 years.

🟢 EBITDA has grown at 41.7% a year over 3 years.

🟢 EBITDA Margin has risen from 12.8% to 17.8% over 3 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 32.1% a year over 3 years.

🟢 EPS has grown at 29.9% a year over 3 years.

🟢 ROE has risen from 13.7% to 15.3% over 3 years (+1.5 pts).

🟢 ROCE has risen from 19.5% to 22.4% over 3 years (+2.9 pts).

🔴 Total Debt has grown at 47.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,300 Cr

Total Liabilities

₹631 Cr

Total Debt

₹287 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹112 Cr

Capex

-₹189 Cr

Shareholding (proxy)

Institutional Holding

16.7%

Insider Holding

49.9%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,178.67

+14.9% vs CMP

Target Range

₹1,706 – ₹3,000

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

4 mixed2 general

Venus Pipes and Tubes (NSEI:VENUSPIPES) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Venus Pipes & Tubes Share Price Fall in Small Cap Trade

Univest, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Venus Pipes jumps 7%, hits 52-wk high on fund raise nod for debt repayment

Business Standard, 17 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Venus Pipes & Tubes posts record ₹320.5 crore revenue in Q1FY27

scanx.trade, 05 Aug

Earnings call transcript: Venus Pipes and Tubes posts record Q1 2026 growth

Investing.com, 10 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Venus Pipes & Tubes (VENUSPIPES.NS): Stock Holds Near ₹1,643 Amid Infra Sector Optimism - Accumulation Line

https://www.siam.in/, 31 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.1/20

🟡Financial HealthAdequate10.8/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.2/15

🔴ValuationDemanding6.5/15

🔴RiskHigh4.4/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 20% a year26.8% CAGR
✓EBITDA margin holds above 16%17.8%
✗Free cash flow remains positive-₹76 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 19%22.4%