Steel pipe players, like Venus Pipes and Tubes Ltd., Ratnamani Metals & Tunes Ltd., and Welspun Specialty Solutions Ltd., have underperformed on the stock market in 2025. Over the last year, these stocks have seen declines ranging from 8% to 34%.
This recent weakness is attributed to several factors—subdued domestic demand, limited capital expenditure from both private and government sector, and broader geopolitical issues, including conflicts in Europe and evolving trade practices in the US.
But despite the challenge, a closer look reveals a landscape ripe with potential, bolstered by strategic global shifts and robust domestic policies.
Saudi Arabia's Anti-Dumping Move
A significant development on the international front is Saudi Arabia's decision to impose anti-dumping duties on steel pipe imports from China and Taiwan. These are set to open up substantial export opportunities for Indian companies.
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Company Insights: Valuation And Order Books
Among the key players, Venus Pipes appears to be trading at a more attractive valuation with an EV/Ebitda of 17.77, compared to Ratnamani Metals at 24.35 and Welspun Speciality at 75.69.
In terms of current order books, Ratnamani Metals leads with Rs 1,900 crore, followed by Venus Pipes at Rs 575 crore, and Welspun Speciality at Rs 334 crore. The order book mix also varies, with Ratnamani Metals having a higher export component (58%), while Venus Pipes and Welspun Speciality lean more towards domestic orders; 60% and 63%, respectively.
Domestic Tailwinds And Future Outlook
The Indian government's own anti-dumping duties on seamless steel tubes and pipes, ranging from $114-$3,801/ton until FY28, are creating a strong push for import substitution. This has already led to a surge in premium for imported seamless products, making domestic alternatives more competitive. Experts anticipate an increase in domestic demand and further export opportunities, implying a positive picture for the industry's volume growth.
Venus Pipes expects 16-18% margins for FY26 and FY27, while Ratnamani Metals anticipates 5-10% volume growth in FY26. Welspun Speciality is even more bullish, guiding for 25-30% volume growth in FY26.
Brokerage View
All eight analysts tracking Venus Pipes have a 'buy' rating on the stock, according to Bloomberg data. The return potential stands at 42%, with target prices ranging from Rs 1,665 to Rs 2,120.
Philip Securities, Elara, and DAM Capital have 'buy' rating on Ratnamani Metals, setting target prices between Rs 3,354 and Rs 3,440.
While the Indian steel pipe industry has faced recent challenges, the confluence of international trade policies, domestic protective measures, and strong underlying financials suggest a robust path to growth in the coming years.
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