Ambit Institutional Equities highlights that new products can drive upgrades for Venus Pipes, maintains target of Rs 2336

Ambit highlights that Venus Pipes Rev/EBITDA grew 17%/19% YoY, in line with their estimates. Recovery in domestic business (47% YoY) drove growth in Q4 FY26; exports declined 22% YoY as geopolitical issues cropped up. Management highlighted that remaining capacity additions are now done and made operational, including fittings. Management announced foray into Spooling Solutions with Rs 700 mn capex, backed by an LOI worth Rs 1.9 bn from a leading customer in Data Center segment. Company’s orderbook (ex-LOI) now stands at Rs 4.5 bn (2.5x YoY). Also, with entry into new-age sectors and fittings capacity becoming operational, management has strong performance visibility for the next few quarters. Company acquired additional 15 acres of land for future expansion. Ambit marginally trims their FY28 EBITDAM/PAT estimates by 40bps/3% due to increased investments in the business. Ambit builds 23%/30% rev/PAT CAGR over FY26-29E; better-than-expected execution in new products can drive upgrades. Ambit’s 24 Month Target Price TP of Rs 2,336 implies 27x FY28 EPS.