USHAMART - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Breakdown

Profitability

ROCE: 26.6% and ROE: 21.1% — excellent, indicating strong operational efficiency and shareholder value creation.

EPS: ₹9.98, with PAT slightly down from ₹78.2 Cr. to ₹70.9 Cr. — a modest 2.92% dip, not alarming.

Debt-to-equity: 0.08 — very low leverage, a major strength for financial resilience.

Dividend Yield: 0.72% — modest, but consistent.

Institutional Sentiment

FII holdings increased slightly (+0.04%), DII holdings rose significantly (+1.81%) — strong domestic confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 41.6 High vs. industry average (24.0) — suggests premium pricing.

P/B Ratio ~8.28 Elevated, typical for high-margin industrials.

PEG Ratio 2.38 High — valuation stretched relative to earnings growth.

Intrinsic Value ~₹390–₹410 (est.) Current price of ₹416 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Usha Martin is a leading manufacturer of wire ropes, strands, cords, and related accessories, serving mining, oil & gas, infrastructure, and construction sectors.

Strengths

Global footprint with exports to 50+ countries.

Strong backward integration and technical expertise.

High operating margins and consistent cash flows.

Challenges

RSI at 70.6 — nearing overbought territory.

MACD at 9.22 — bullish momentum, but may be peaking.

Slight quarterly profit contraction.

📈 Entry Zone & Technicals

DMA 50: ₹374, DMA 200: ₹352 — price is well above both, indicating strength.

RSI: 70.6 — overbought zone.

MACD: 9.22 — bullish, but watch for reversal.

📌 Entry Zone: ₹380–₹400 — ideal for accumulation on pullbacks.

🕰️ Long-Term Holding Guidance

2025 Target: ₹350.6–₹453.2

2026 Target: ₹453.2–₹482.8

2027 Target: ₹482.8–₹516.6

2030 Target: ₹600+

Holding Strategy: Usha Martin is a high-quality industrial play with strong fundamentals, low debt, and global demand tailwinds. Suitable for long-term investors seeking exposure to infrastructure and engineering growth. Accumulate during technical dips and hold through cycles.

You can explore Usha Martin’s forecast and valuation insights for deeper context

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