Nuvama favours Venus Pipes, Welspun Corp, APL Apollo as pipe demand recovery nears

Nuvama Institutional Equities is turning more positive on select pipe stocks, with Venus Pipes, Welspun Corp, APL Apollo, Supreme Industries, Astral and JTL Industries among its preferred names.

The brokerage is also constructive on the broader sector as it expects domestic demand to recover after a prolonged slowdown. However, it believes investors should focus on companies with strong growth, market share gains, capacity expansion and better execution rather than simply choosing stocks because they look cheap.

Among its preferred names, Venus Pipes stands out as the top idea, according to Sneha Talreja, Director at Nuvama Institutional Equities.



Venus Pipes: Nuvama’s preferred stock

Talreja is particularly positive on Venus Pipes because of its strong capacity expansion, rising exports and growing exposure to new end markets.

The company has grown its capacity at around 50% CAGR over the past few years and is currently expanding capacity at roughly 20% CAGR. Revenue growth visibility is also around 20% CAGR, according to Talreja.

Exports have increased sharply, rising from less than 5% of sales in 2022 to around 30% currently. The company is also expanding beyond traditional markets such as chemicals, engineering, pharmaceuticals and food processing into defence, aerospace and data centres.

“That's where I think the re-rating is also about to happen,” Talreja said.

She expects Venus Pipes to benefit further from a change in product mix, with investments in fittings and spooling capacity. These businesses carry higher margins, which could help improve the company's overall profitability and return ratios.



Welspun Corp: more upside despite strong run

Talreja remains positive on Welspun Corp, which has benefited from strong international demand, particularly from the US oil and gas market.

The company recently secured a ₹17,200-crore order, larger than its FY26 revenue of ₹16,700 crore. The order is linked to oil and gas transportation in the US.

According to Talreja, the US opportunity has played out strongly, but potential growth from the Middle East and data centre-related energy demand is yet to fully emerge.

She also expects increased oil and gas infrastructure spending as countries look for alternative supply routes.

APL Apollo remains a preferred large player

APL Apollo is another stock that Nuvama remains positive on. The company has a dominant position in electric resistance welded (ERW) pipes and has been aggressively expanding its capacity.

Talreja highlighted the company's strong execution track record and wide product profile as key advantages. APL Apollo currently has around 5 million tonnes of capacity, with announced capacity expected to rise significantly.

For the entire discussion, watch the accompanying video