Venus Pipes at new high

about 2 months ago
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Venus Pipes is doing pretty well today; from its close of Rs.1739.15, the stock opened 4% higher and soon rose to hit a new life-time high at Rs.1889, up almost 9% on the back of a 3x surge in volumes.

The market has given a big thumbs up to its diversification into fittings business and also for the capacity expansion of its seamless & welded pipes & tubes capacity.

Fittings will include a wide range of products like elbows, tees, reducers, joints, flanges etc, designed to meet the specific requirements of different industries and applications. The aim is to provide a one-stop-shop for all piping, fittings and flanges requirements.

Apart from this, the company is introducing a specialized product line of stainless and titanium welded tubes aimed at enhancing its competitive edge and profitability. Spread over two phases, this includes, under Phase I, capacity expansion for setting up of value-added Fittings & Welded Tubes, to be completed by March 2025. Phase II includes capacity expansion for setting up of value-added Fittings, Welded / Seamless - Pipes / Tubes; to be completed by December 2025.

The total cost of this expansion is pegged at Rs.175 crore of which 40% or Rs.70 crore will be funded through warrants to be issued to promoters & others and balance 60% will be raised through term loan from banks & internal accruals.

2122.25 (+42.90)

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