Brokerage firm Nuvama Institutional Equities has turned positive on India’s pipe sector, citing signs of a recovery in domestic demand after a prolonged slowdown. The brokerage believes companies with strong growth visibility, market share gains, capacity expansion plans, and efficient execution are best positioned to benefit from the next upcycle. As a result, Nuvama has highlighted Venus Pipes & Tubes, Welspun Corp, APL Apollo Tubes, Supreme Industries, Astral, and JTL Industries as its preferred picks.
Venus Pipes Emerges as Nuvama’s Top Pick
Venus Pipes is Nuvama's most preferred stock in the pipe segment. According to Nuvama Director Sneha Talreja, the company has delivered nearly 50% CAGR capacity expansion over the last few years and is targeting around 20% CAGR growth in capacity going forward. Revenue is also expected to grow at a similar pace.
The company has significantly increased its export contribution, which has risen from less than 5% of sales in 2022 to nearly 30% today. Beyond its traditional presence in chemicals, engineering, pharmaceuticals, and food processing, Venus Pipes is expanding into high-growth sectors such as defense, aerospace, and data centers. Nuvama believes these developments could drive a re-rating of the stock. Capacity additions in fittings and spooling businesses, which carry higher margins, are also expected to improve profitability and return ratios.
Welspun Corp Gains from Global Energy Infrastructure Spending
Nuvama is also optimistic about Welspun Corp due to strong international demand, particularly from the United States oil and gas sector. The company recently secured an order worth approximately ₹17,200 crore, exceeding its FY26 revenue of ₹16,700 crore. The order is linked to oil and gas transportation projects in the US
The brokerage sees additional opportunities emerging from the Middle East and growing energy demand driven by data centers. Rising investments in oil, gas, and water infrastructure could further strengthen Welspun’s growth prospects.
Supporting this view, Jefferies recently initiated coverage on Welspun Corp with a "Buy" rating and a target price of ₹3,250. The brokerage highlighted the company's leadership as the world's largest welded line pipe manufacturer and expects it to benefit from multi-year investments in US energy infrastructure and Saudi Arabia's Vision 2030 projects.
APL Apollo Continues to Strengthen Its Position
APL Apollo is another key Nuvama pick. The company holds a strong position in the ERW pipes segment and has consistently demonstrated strong execution capabilities. Its extensive product portfolio and expansion strategy remain major strengths.
The company currently has a manufacturing capacity of around 5 million tonnes and plans to expand further to capture growing demand from construction, infrastructure, and industrial projects. Nuvama believes its scale and execution track record make it a major beneficiary of a demand recovery.
Other Preferred Stocks
Besides the three major names, Nuvama also favors:
Supreme Industries
Astral
JTL Industries
These companies are expected to benefit from improving demand across plumbing, water management, irrigation, housing, and industrial applications.
Outlook for the Pipe Industry
Nuvama expects domestic pipe demand to improve gradually as infrastructure spending accelerates, private sector investments pick up, and construction activity remains strong. Companies that continue to invest in capacity expansion and maintain strong execution are likely to outperform as the sector enters a new growth phase.
FAQs
1. Which pipe stocks are Nuvama’s preferred picks?
Nuvama prefers Venus Pipes, Welspun Corp, APL Apollo, Supreme Industries, Astral, and JTL Industries.
2. Why is Venus Pipes Nuvama’s top pick?
The company offers strong capacity growth, rising exports, expansion into new industries, and higher-margin business opportunities.
3. What makes Welspun Corp attractive?
Strong international demand, a large order book, US oil and gas opportunities, and Middle East infrastructure investments support its growth outlook.
4. What is Nuvama’s view on APL Apollo?
The brokerage likes APL Apollo for its strong execution track record, large product portfolio, and ongoing capacity expansion plans.
