Shares of Venus Pipes & Tubes Ltd. jumped over 8% to an all-time high on Thursday after it announced its foray into fittings business as well as capacity expansion for seamless and welded pipes and tubes.
The capacity expansion will be in two phases. In the first phase, it will set up value-added fittings and welded tubes by March 2025. The cost of this project is Rs 115 crore, according to an exchange filing on Wednesday.
The second phase consists of fittings, seamless and welded pipes and tubes, which is to be completed by December 2025 and will cost Rs 60 crore, the manufacturer of stainless-steel pipes and tubes said.
Venus Pipes' stock rose as much as 8.83% during the day to Rs 1,889 apiece on the NSE. It was trading 5.6% higher at Rs 1,883.20 per share, compared to a 0.33% decline in the benchmark Nifty 50 at 10:41 a.m.
The share price has risen 154.17% in the last 12 months. The total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 75.24, indicating that the stock may be overbought.
Six analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2.5%.
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