Check Before You Invest : Venus Pipes & Tubes Ltd

Snapshot

Q.1 Which industry/sub-sector does Venus Pipes & Tubes Ltd belong to?

Venus Pipes & Tubes Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Venus Pipes & Tubes Ltd a good quality company?

Venus Pipes & Tubes Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Venus Pipes & Tubes Ltd undervalued or overvalued?

Venus Pipes & Tubes Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Venus Pipes & Tubes Ltd a good buy now?

Venus Pipes & Tubes Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd revenue growth is 19.5% for FY-2025, which is below its 5-year CAGR of 40.07%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Return on capital employed is 24.99% for FY-2025, which is below its 5-year historical median of 28.45%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Return on Asset is 10.39%, which is below its 5-year historical median of 13.36%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Return on equity is 20.07% for FY-2025, which is below its 5-year historical median of 23.61%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Cash conversion cycle is 93 days, above its 5-year historical median of 81 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.07	1.44
ROE	20.07	23.61
ROCE	24.99	28.45
Cash Conversion Cycle	93 days	81 days

Q.6 Gross Profit margin of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Gross profit margin which is the profit after deduction of direct costs, is 15% for FY-2025, which is above its 5-year median of 11.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.49% for FY-2025, which is above its 5-year median of 12.72% indicating increasing margins.

Q.8 Net Profit Margin of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Net Profit Margin is 9.69% for FY-2025, is above with its 5-year median of 8.18%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15	11.5
Operating Profit Margin	17.49	12.72
Net Profit Margin	9.69	8.18

Q.9 Debt to Equity ratio of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Debt-to-Equity ratio is 0.37, which is above with the industry average of 0.35, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Venus Pipes & Tubes Ltd?

Venus Pipes & Tubes Ltd Debt to cash flow from operations is 2.79, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Venus Pipes & Tubes Ltd?

Promoters hold 48.41% of the Venus Pipes & Tubes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Venus Pipes & Tubes Ltd vs industry peers?

Venus Pipes & Tubes Ltd revenue CAGR is 40.07%, compared to the industry median CAGR of 11.40%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.5	11.4
Gross Profit Growth	13.4	19.8
Operating Profit Growth	15.1	13.9
Net Profit Growth	8.1	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.07	1.33
ROE	20.07	9.64
ROCE	24.99	12.04
Cash Conversion Cycle (days)	93.26	80

Valuation & price assessment

Q.1 Stock return of Venus Pipes & Tubes Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 16.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	16.7%	14.8%

Q.3 Valuation ratios of Venus Pipes & Tubes Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	28.49	39.38	17.26
Price to Book	4.36	5.62	1.63
Price to Sales	2.54	3.66	0.74
EV to EBITDA	15.6	24.22	10.03

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