Ashish Kacholia's small-cap stock reports highest ever profit; company announces big capex plan!
In the past year, the stock has gifted investors with multibagger returns, soaring over 200 per cent! This is a stock that's hotter than a blazing comet!
Imagine a planet that's even hotter than Mercury – that's right, it's Venus! Similarly, Venus Pipes & Tubes has emerged as the hottest contender in the solar system of stainless-steel pipes and tubes. Recently, this stellar company reported its quarterly numbers, and boy, are they impressive! Brace yourself for some jaw-dropping figures: the revenue from operations skyrocketed by a whopping 58.1 per cent YoY to Rs 179.6 crore. But that's not all! The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged an incredible 91.7 per cent YoY to Rs 27.6 crore, and the net profit shot up by 91.2 per cent YoY to Rs 17.4 crore. That's enough to make any investor's heart race like a comet in the night sky!
But what's driving this cosmic success? Venus Pipes & Tubes has not only managed to boost its revenue and profits but also made significant improvements in its EBITDA margins, which improved by 269 basis points to 15.4 per cent. That's like reaching new orbits of operational efficiency!
And hold on to your telescopes because there's more excitement ahead. The company is gearing up for a grand expansion plan. They are planning to increase the capacity of Seamless Pipes by adding a substantial 400 MT per month. Moreover, the LSAW (Longitudinal Submerged Arc Welded) plant is going big, with plans to manufacture larger 56-inch dia pipes, offering more varieties to customers in their celestial catalogue of products. Not to mention the enhanced operational efficiency in their Piercing Mill, leading to increased production of Mother Hollow Pipes. The total capex is estimated to be in the range of Rs. 40-45 Crores, and it will be funded from their internal accruals. It's like a supernova of growth potential!
With a star-studded clientele, Venus Pipes & Tubes has earned its place among the elites including big names like Adani, Bhel, Coromandel, Asian Paints, Voltas, Godrej, and Engineers India, among others. That's a cosmic endorsement of their quality and reliability! Over 58 Fortune 500 companies in India swear by their products. And it doesn't stop there; they export to more than 20+ countries and serve diverse end-user industries.
But let's look beyond our own little corner of the universe. The Indian stainless-steel sector is a powerhouse, being the 2nd largest producer and consumer worldwide, with a massive manufacturing capacity of over 6.8 million tons annually. India's appetite for stainless steel is on the rise, with per capita consumption increasing from 1.2 Kg in 2010 to 2.5 Kg in 2022. However, there's still room for growth, as the world average stands at 6 Kg per capita. The demand for pipes and tubes is soaring, especially from industries like chemicals, pharmaceuticals, engineering, and more. The future for Venus Pipes & Tubes looks as bright as the gleaming stars in the night sky!
Now, if you're wondering who's been riding this meteoric success story, meet Ashish Kacholia, the Small-Cap maestro who holds a 1.97 per cent stake in the company. With such a vote of confidence from a stock market wizard, it's no surprise that Venus Pipes & Tubes is on fire in the market! On Friday, the stock reached a dazzling 52-week high of Rs 1320 on NSE. And in the past year, the stock has gifted investors with multibagger returns, soaring over 200 per cent! This is a stock that's hotter than a blazing comet!