USHAMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | USHAMART | Market Cap | 13,768 Cr. | Current Price | 452 ₹ | High / Low | 498 ₹ |
| Stock P/E | 35.2 | Book Value | 58.7 ₹ | Dividend Yield | 0.66 % | ROCE | 30.0 % |
| ROE | 23.5 % | Face Value | 1.00 ₹ | DMA 50 | 429 ₹ | DMA 200 | 413 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 0.70 % | PAT Qtr | 138 Cr. | PAT Prev Qtr | 84.0 Cr. |
| RSI | 59.0 | MACD | 11.1 | Volume | 26,51,500 | Avg Vol 1Wk | 19,29,562 |
| Low price | 281 ₹ | High price | 498 ₹ | PEG Ratio | 1.58 | Debt to equity | 0.00 |
| 52w Index | 78.9 % | Qtr Profit Var | 76.8 % | EPS | 11.6 ₹ | Industry PE | 22.1 |
📊 Financials: USHAMART shows strong profitability with ROCE at 30% and ROE at 23.5%. Debt-to-equity is 0.00, reflecting a debt-free balance sheet. EPS of ₹11.6 supports earnings strength, while quarterly PAT surged 76.8% (₹138 Cr vs ₹84 Cr), indicating robust growth momentum. Cash flow stability is implied by consistent profit expansion.
💹 Valuation: Current P/E of 35.2 is above industry average (22.1), suggesting premium valuation. PEG ratio of 1.58 indicates growth is reasonably priced compared to earnings. P/B ratio (~7.7) is elevated but supported by strong return metrics. Dividend yield of 0.66% is modest.
🏢 Business Model & Advantage: USHAMART operates in industrial equipment and engineering solutions, benefiting from strong demand cycles, diversified product portfolio, and institutional support. Competitive advantage lies in high operating efficiency and consistent profit growth.
📈 Entry Zone: Attractive entry near ₹420–₹435 (close to DMA 200 and support levels). Current price (₹452) is slightly above fair entry, with resistance at ₹498.
⏳ Long-Term Holding: Suitable for 3–5 year horizon given strong fundamentals, debt-free structure, and earnings momentum. Partial profit booking advised near ₹490–₹498 resistance if valuations remain stretched.
Positive
- High ROCE (30%) and ROE (23.5%)
- Debt-free balance sheet
- Strong quarterly profit growth (76.8%)
- Institutional support (FII +0.15%, DII +0.70%)
Limitation
- Premium valuation (P/E 35.2 vs industry 22.1)
- Elevated P/B ratio (~7.7)
- Modest dividend yield (0.66%)
Company Negative News
- No major negatives reported; valuation premium is the main concern.
Company Positive News
- Strong quarterly earnings growth and rising institutional interest.
Industry
- Industrial equipment sector supported by infrastructure and manufacturing demand.
- Industry PE at 22.1, reflecting moderate valuations compared to USHAMART’s premium.
Conclusion
USHAMART is fundamentally strong with excellent return metrics, debt-free structure, and robust profit growth. While valuations are at a premium, the company’s growth momentum supports long-term holding. Ideal entry is closer to ₹420–₹435, with profit booking advised near ₹490–₹498 resistance levels.