Venus Pipes (VENUSPIPES)
Fast GrowerFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,577.3 |
| Market Cap | ₹3,267.55 Cr |
| P/E Ratio | 31.95 |
| ROCE | 24.95% |
| ROE | 20.73% |
| Dividend Yield | 0.06% |
| Profit Growth | 6.64% |
| Debt/Equity | 0.43 |
| Sales Growth | 15.3% |
| Promoter Holding | 48.41% |
| 52-Week Range | ₹890 — ₹2,038.3 |
| Sector | Industrial Products |
| Book Value | ₹324.59 |
Strengths
- Sales growth of 28.27% and profit growth of 45.19% show strong momentum.
- ROE of 20.73% and ROCE of 24.95% indicate efficient capital allocation.
- Debt/Equity of 0.43 gives reasonable financial stability.
- PEG ratio of 0.62 suggests valuation is not excessive relative to profit growth.
- Piotroski F-Score of 7/9 reflects healthy fundamentals.
Concerns
- P/B of 5.77 leaves little margin of safety for a cyclical iron and steel business.
- The 52-week range of ₹890-₹1870 shows significant share price volatility.
- Dividend yield of only 0.09% means investors rely solely on growth and capital gains.
- Promoter holding of 48.41% is decent but not overwhelmingly aligned.
AI Analysis
When I look at Venus Pipes, I see the numbers of a growing business but I must ask: what kind of business am I buying? Sales up 28.27%, profit up 45.19%—that is impressive. The latest quarter continued with ₹297 Cr revenue and ₹26 Cr net profit. Returns on equity and capital of 20.73% and 24.95% tell me the company is putting shareholder money to work. Debt/equity of 0.43 is reasonable; it is not drowning in leverage. The P/E of 22.87 is not cheap, but against a profit growth of 45%, the PEG ratio of 0.62 suggests the market is paying less than the growth rate. That is the kind of arithmetic that can work if growth persists. However, I need to remember this is an iron and steel products company. Graham taught me to require a margin of safety. Steel is a cyclical, competitive industry. A P/B of 5.77 means I am paying nearly six times book for a business whose products are not fundamentally differentiated. The dividend yield of 0.09% is negligible; the return depends entirely on future growth and capital appreciation. Promoter holding of 48.41% is decent but not a commanding majority. The price range of ₹890 to ₹1870 over the year shows how much this stock can swing. I do not know whether the growth rate is sustainable or simply riding a favourable steel cycle. At ₹1384, with a FairStock score of 51/100, I would call this a mixed opportunity. It is a fast grower with solid numbers, but I would want to see continued execution, stable margins, and no over-leveraging before I commit a large sum.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer